If a business is experiencing increasing returns to scale (IRTS) then... Group of answer choices If the firm increases its size unit costs will increase. New firms will enter the market, which will reduce the efficiency of the existing firm. If the firm increases its size unit costs will decrease. If the firm decreases its size unit costs will decrease.

If a business is experiencing increasing returns to scale (IRTS) then... Group of answer choices If the firm increases its size unit costs will increase. New firms will enter the market, which will reduce the efficiency of the existing firm. If the firm increases its size unit costs will decrease. If the firm decreases its size unit costs will decrease.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 4E

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Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows:Output TFC TVC TC AFC AVC ATC MC 0. 10001. 1002. 1003. 4004. 4505. 16006. 32007 6400 A) Given the partial data available, finish the table and calculate all the costs. B)What is the minimum efficient scale of Vinnie’s company?C)What is the marginal cost of 6 houses?D)If Vinnie charges $825 per house, how many houses he should paint to maximize profit
A profit - maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $ 200. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must beless than 100 units.
Required information Skip to question An image shows the curves of MC, ATC, and AVC.Image shows the bar graph which represents the cost data but in their the curves are also shown in the terms of MC, ATC , AVC. At x-axis shows the Quantity and at y-axis shows the Costs. Refer to the graph above to answer this question. At what output does excess capacity exists? Multiple Choice 180. 200. Any output above 180. Any output below 180.Required information Refer to the graph above to answer this question. At what output does excess capacity exists? GIve me correct answer with calculation adn full explanation oterwise i give multiple downvote
Required information Skip to question An image shows the curves of MC, ATC, and AVC.Image shows the bar graph which represents the cost data but in their the curves are also shown in the terms of MC, ATC , AVC. At x-axis shows the Quantity and at y-axis shows the Costs. Refer to the graph above to answer this question. At what output does excess capacity exists? Multiple Choice 180. 200. Any output above 180. Any output below 180.Required information Refer to the graph above to answer this question. At what output does excess capacity exists?
10 ATC ATC2 ATC3 ATC, 2 2 4 6 8 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. If the market demand for copies is 12,000 copies per day, how many copy shops would you expect to see in this market? The answer depends on the price of a copy, which is unknown. O 1 (because the copy shop will become a monopoly with a large quantity demanded) O (because the copy shop can't produce 12,000 copies efficiently and will shutdown) 3 (with each shop supplying 4000 copies per day) 8, 6 Average cost (cents per copy)
A profit-maximizing firm in a competitive market is currently producing 90 units of output. It has average revenue of $6, average total cost of $6, and fixed cost of $270. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must be 90 units.
To make a decision about opening a restaurant, what is the relevant cost for Aram? $50 thousand has been spent to date on renovating the place. Aram could be earning $ 100 thousand a year as a chef. Additional labor and other costs necessary to open the restaurant equal $ 60 thousand a year. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $ 160 thousand a b. $ 60 thousand $ 210 thousand $ 110 thousand $ 50 million
Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0 1000 1 100 2 100 3 400 4 450 5 1600 6 3200 7 6400 a) Given the partial data available, finish the table and calculate all the costs. b) What is the minimum efficient scale of Vinnie’s company? c) What is the marginal cost of 6 houses? d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?
Which of the costs discussed in the chapter is the most important when a firm is deciding how much to produce? Costs that are spent to improve the image of the firm. A firm will choose to increase output if it spends a large amount on advertising and brand image. Fixed costs because these costs are spent and cannot be changed in the time period under consideration. If fixed costs are higher, the firm will choose to produce more output. Variable costs because these costs change as output changes. If the firm wants to maximize profits, it will choose to produce a quantity where variable costs are minimized. Marginal cost because this cost shows the additional cost associated with producing one more unit of output. Firms will use this information to decide to produce more or less output.
We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?
As a firm increases its output, we expect marginal cost to Increase. Decrease. Remain the same. Impossible to predict.
At the profit maximizing output level of 100, the price of the output is 25, the fixed costs are 2500 and the variable costs are 1200. at what level of output should the firm produce at in the short run? (0 or 100)?