Survey Of Economics
10th Edition
ISBN: 9781337111522
Author: Tucker, Irvin B.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6, Problem 25SQ
To determine
The firm with economies of scale.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which of the following would shift a firm's short-run cost curves downward? a.an increase in excise taxes levied on the firm's product b.an increase in the demand for the firm's product c.an advance in technology d.an increase in employees' wages
(1) Use the graph to answer the question.
Between points C and D, the long-run average total cost curve is characterized by ________ because the firm is experiencing ________ returns to scale.
A-constant returns; constant. B-economies of scale; increasing. C-economies of scale; constant
D-diseconomies of scale; increasing. E-diseconomies of scale; decreasing
The graph is attached on the following
(2) If a firm is operating at a point on its long-run average total cost curve where the slope is negative, it is
A-experiencing increasing returns to scale. B-experiencing constant returns to scale
C-experiencing decreasing returns to scale. D-achieving efficient scale. E-making progressively less as it increases its inputs
(3) If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true?
A-Average total cost < price; marginal cost = marginal revenue
B-Average total cost > price; marginal cost = marginal revenue
C-Average…
Suppose a firm's long-run average cost is increasing as the firm produces more output. Then the firm is said to be experiencing which of the following?
a.constant returns to scale
b.increasing returns to scale
c.diminishing marginal product
d.decreasing returns to scale
Chapter 6 Solutions
Survey Of Economics
Ch. 6.5 - Prob. 1YTECh. 6 - Prob. 1SQPCh. 6 - Prob. 2SQPCh. 6 - Prob. 3SQPCh. 6 - Prob. 4SQPCh. 6 - Prob. 5SQPCh. 6 - Prob. 6SQPCh. 6 - Prob. 7SQPCh. 6 - Prob. 8SQPCh. 6 - Prob. 9SQP
Ch. 6 - Prob. 10SQPCh. 6 - Prob. 11SQPCh. 6 - Prob. 1SQCh. 6 - Prob. 2SQCh. 6 - Prob. 3SQCh. 6 - Prob. 4SQCh. 6 - Prob. 5SQCh. 6 - Prob. 6SQCh. 6 - Prob. 7SQCh. 6 - Prob. 8SQCh. 6 - Prob. 9SQCh. 6 - Prob. 10SQCh. 6 - Prob. 11SQCh. 6 - Prob. 12SQCh. 6 - Prob. 13SQCh. 6 - Prob. 14SQCh. 6 - Prob. 15SQCh. 6 - Prob. 16SQCh. 6 - Prob. 17SQCh. 6 - Prob. 18SQCh. 6 - Prob. 19SQCh. 6 - Prob. 20SQCh. 6 - Prob. 21SQCh. 6 - Prob. 22SQCh. 6 - Prob. 23SQCh. 6 - Prob. 24SQCh. 6 - Prob. 25SQ
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Use the concepts of economies and diseconomies of scale to explain the shape of a firm’s long-run ATC curve. What is the concept of minimum efficient scale? What bearing can the shape of the long-run ATC curve have on the structure of an industry?arrow_forwarde) In the following diagram of cost curves, how many short runs have been created? State and explain which SRATC will be chosen if the firm wants to produce at Q1, Q2 and Q3. SRATC, SRATC, SRATC, Q2 Q3 Quantity of Output Average Total Cost (dollars)arrow_forwardA firm’s marginal product will be at a maximum at which of the following levels of output? A less than the quantity where average cost is a minimum. B greater than the quantity where marginal cost is a minimum. C greater than the quantity where average cost is a minimum. D less than the quantity where marginal cost is a minimum.arrow_forward
- Consider the following graph: Average Total Cost (S) ATCA ATCB ATC ATCO Q₁ Q₂ Q3 Q5 At which points does the firm exhibit economies of scale? From Q3 to Q4 From Q2 to Q3 From Q1 to Q2 O From Q4 to Q5 Quantity of Tractorsarrow_forward7arrow_forwardExplain what is the relationship between marginal cost and average total costs for a firm or industry exhibiting each of the following: a. Economies of scale. b. Constant returns to scale. c. Diseconomies of scale.arrow_forward
- The above cost curves are for a firm producing flour, which is measured in pounds. 1. What is the firm's total cost when it produces 200 pounds of flour? ______(Enter only a number) 2. What is the firm's fixed cost? _____(Enter only a number) 3. What is the firm's average variable cost when it produces 200 pounds of flour? _____(Enter only a number)arrow_forwardCosts in the short run versus in the long run help mearrow_forwardPlease answer all questionsarrow_forward
- Discuss the relationship, with the use of a graphical illustration(virtual), of the firm's total product curve and its marginal cost curve. Hint: Law of diminishing marginal returns.arrow_forwardGive typing answer with explanation and conclusionarrow_forwardEconomies of scale are indicated by Multiple Choice O the rising segment of the average variable cost curve. the declining segment of the long-run average total cost curve. the difference between total revenue and total cost. a rising marginal cost curve.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning