Why does the difference between AVC and ATC get smaller as Q increases? b)  Why does MC intersect AVC and ATC at their minimum points? c)  Explain the difference between the short run and the long run.

Q: Explain the differences between diminishing marginal returns and diseconomies of scale.

A: Since the marginal return can be defined as the additional return by purchasing an additional…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

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Q: 9 35 30 25 20 15 10 5 O O 2 3 Quantity (Vats of juice) 10 5 6 Marginal Cost Average Variable Cost…

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Q: What does fixed cost refer to in economics? a) Costs that vary with the level of production b) Costs…

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Q: Costs # Refer to the graph above to answer this question. Which curve illustrates marginal cost? A)…

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Q: 3. Nokia sells a new budget cell phone. Based on information provided by the accounting department,…

A: Given  The average variable cost for Nokia cell phone: AVC=$30+Q           .........(1) Average…

Q: Chapter 22 Supply: The Costs of Doing Business Why does the minimum point of the average-total-cont…

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Q: Which of the following is a correct statement about the relationship between average cost (AC) and…

A: The relationship between MC and AC can be stated as under: (i) When AC falls with increase in…

Q: a)In your own words, state and briefly explain two reasons that lead to economies of scale. 50 to…

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Q: Which one of the following statements about a firm’s cost curves is true? A. The average variable…

A: The explicit cost refers to the cost expressed in monetary terms. The implicit are not directly…

Q: Define economics of scale and explain they might arise. Define diseconomies of scale and explain why…

A: Economies of scale apply to the property that as the quantity of product increases, the long-run…

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Q: a. Complete the following schedule, if the fixed cost = BD 700. (Note: you will receive full marks…

A: Here, output and total cost is given with the fixed cost of BD 700 and the formulas related to other…

Q: Read Chapter 13 and fill in the grid below. Also add a column to the grid -to the "right" of Average…

A: The table can be filled as follows:

Q: How does the impact of fixed costs change production decisions in the short run and in the long run?…

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A: Step 1: Step 2:Thank you Step 3: Step 4:

Q: Cost curves in the long run differ from cost curves in the short run.   This is true right.

A: YES the statement that "Cost curves in the long run differ from the cost curves in the short run" is…

Q: The government imposes a $1,000 one-time license fee on all pizza restaurants.  As a result, which…

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Q: Label each of the following as sunk cost, opportunity cost, or incremental costs and briefly explain…

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