Answered: If a firm is experiencing economies of…

If a firm is experiencing economies of scale, doubling inputs will: double output. more than double output. have no effect on output. increase, but less than double, output.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 16SQ

See similar textbooks

Related questions

Q: If a firm finds itself operating in Stage I, it implies that Select one: a. fixed inputs are…

A: Marginal product is the incremental change in the output by employing an additional unit of some…

Q: You are a manager of a firm that experiences economies of scope between all the products…

A: Economies of scope are cost advantages that result when firms provide a range of products instead of…

Q: If a firm is enjoying modest accounting profit but incurring significant economic losses, which of…

A: Here, it is given that a firm is enjoying a high accounting profit, but facing an economic loss.

Q: Marginal cost is the: rate of change in total fixed cost that results from producing one more unit…

A: Marginal cost by definition is the cost incurred for producing an extra unit of the good or…

Q: Average fixed costs of production will rise at a fixed rate as more is produced. appear as a…

A: In microeconomics, the average fixed expense is the fixed expenses associated with the production…

Q: We have a company in perfect competition that aims to maximize profits and produces according to the…

A: The profit maximizing firm in Perfect competition will hire worker at a point where Marginal revenue…

Q: Relate the law of diminishing returns to a firm’s short-run production costs.

A: The short-run is the period where few factors of production are fixed and few are variable.…

Q: Costs which increase with an increase in output are called________________ Costs which do not…

A: There are two main components of the total cost(TC) that a firm incurs. One is the variable cost(VC)…

Q: The long run is a period of time, or a time frame, in which all resources are fixed.…

A: A long run in the economics is the time when the manufacturers and producers have the flexibility of…

Q: A company finds that at an output level of 9 units, its total cost is $1700 and at an output level…

A: Given information is: Total cost of 9 units: $1700 Total cost of 10 units: $2000 To find: Value of…

Q: Fixed costs are best defined as costs that do not vary with output. the amount that one more unit of…

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: Economies of ______ occur when a single firm can produce two products for a lower total cost than…

A: Economies of scale occur when a single firm can produce two goods for a lower total cost than two…

Q: Q10 A firm's least-cost position for producing a given output level occurs at that point where…

A: Q10 A firm's least-cost position for producing a given output level occurs at that point where…

Q: When a firm doubles its inputs and finds that its output has more than doubled, this is known as а.…

A: Inputs and output are important for business. Inputs are raw materials, equipment, and machinery…

Q: How does learning by doing affect average total costs? Short-run average total costs will remain…

A: Learning by doing is a process of achieving productivity through practice, innovations, and…

Q: A print shop wants to expand production. It currently has 20 employees and 8 copy machines and…

A: Answer: Given, Number of new employees added = 4 Output produced by 4 new employees = 80,000 Number…

Q: Which of the following situations describes a short-run adjustment of a firm to changing business…

A: The short-run is the period of time in which at least one factor of production (FOP) cannot be…

Q: Which of the following results from bureaucratic red tape, breakdown of top-to-bottom communication,…

A: The Diseconomies of scale are the consequence that occurs because of bureaucratic red tape,…

Q: When a firm is operating at its minimum efficient scale, its: a. marginal revenue is less than the…

A: Minimum efficient scale is defined as the level of output at which all economies of scale are…

Q: A firm’s short-run marginal cost______________________________. increases with output remain…

A: By definition, marginal cost refers to the additional amount of cost which the firm has to bear for…

Q: Marginal cost is defined by: (a) total cost increases when one more unit is produced. (b) fixed…

A: Answer - 1. (a) Total Cost increase when more unit is produced. Reason - Marginal cost is defined…

Q: The short run is a time period such that O the existing firms in the market do not have sufficient…

A: The short run is a time period such that the firms which are prevailing in the market don't have…

Q: he supply curve overtime is more elastic than the supply curve over the short period of time…

A: Supply curve shows the relationship between price and quantity supplies by the producers. Since…

Q: the effect of fixed costs upon AC as output increases the law of demand the law of constant…

A: increasing and decreasing returns to scale

Q: Diseconomies of scale exist over the range of output for which the long-run average cost curve is a.…

A: The firms are considered to be the producers who work with the motive of earning maximum possible…

Q: The inputs that a manager uses to alter production are referred to as: variable factors. long-run…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Fixed costs are associated with Multiple Choice highly adjustable inputs such as labor. both…

A: Fixed costs are costs that does not change with increase or decrease in production/sales. They are…

Q: Production Function: q=32n+2nl+16l n is the size of net l is the hours of labor employed Total…

A: Given Production function: q=32n+2nl+16l ... (1) Total cost function: C=14+2n2+4l2 ...…

Q: Select all that are true regarding profit: (please choose all the answers that are correct)…

A: Profit refers to the income earned by the fourth factor of production i.e. the enterprise from a…

Q: A firm's production is given by f(L, K) =;min(3L, 2K), and it faces input prices w = $30/hr and r =…

A: Given Production function: f(L,K)=16min(3L,2K) ... (1) w= $30/hr r=$10/hr We have to…

Q: The long run is best defined as a time period )during which prices of other goods change. that is…

A: The short-run (SR) is a time span where the prices of inputs are constant but the prices of output…

Q: If a firm's marginal revenue is below its marginal cost, an increase in production will usually: a.…

A: Marginal cost (MC): - it is the additional cost incurred due to the production of additional units…

Q: The feature that distinguishes short-run from the long-run is the*

Q: Variable costs are sunk costs. costs that change every day. costs that change…

A: Total Cost refers to all expenses involved in producing a good or providing a service. It has two…

Q: Pick ALL assumptions that need to be held to ensure a perfecly elastic long-run supply curve for…

A: The long-run supply curve represents the number of goods and services supplied by a producer at each…

Q: A firm's efficiency decision O always means hiring labor that will work for the lowest possible…

A: Efficiency refers to the equilibrium condition where social demand equals social cost.

Q: Q15 _____ cost declines over the whole range of output. a. Average variable. b. Total variable. c.…

A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…

Q: Variable costs are sunk costs. costs that change every day. costs that change…

A: Costs are the expenses that a firm has to incur in the production of goods and services.

Q: A profit-maximizing firm in a competitive market is currently producing 90 units of output. It has…

A: The following information is given: Output = 90 units, Average revenue = 46, Fixed cost = $270,…

Q: Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as…

A: "Diseconomies of scale occurs when each item produced cost more and more as a firm continue to grow…

Q: Which of the following statements is CORRECT? Question 17 options: Short-run decisions are not…

A: There are various factors that affect the production. Some factors are variable and some are fixed.

Q: The ATC of a Firm is 25 when its output level is 21. The marginal cost producing the next unit is…

A: Marginal cost refers to the additional cost that incurred due to increasing one more unit of output.

Q: Which of the following results when an increase in all inputs results in a more-than-proportionate…

A: Answer - a) Diseconomics of Scale - It is the opposite of economics of scale . Diseconomics of…

Q: The minimum efficient scale of a firm: Multiple Choice is realized somewhere in the range of…

A: Minimum Efficient scale is a point between economies of scale and diseconomies of scale.

Question

If a firm is experiencing economies of scale,
doubling inputs will:
double output.
more than double output.
have no effect on output.
increase, but less than double, output.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

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

A company finds that at an output level of 9 units, its total cost is $1700 and at an output level of 10, its total cost is $2000.a) Calculate the value of S for this firm at 9 units of output. b) Are there economies of scale at 9 units of output? Justify your answer.
Increases in long-run average cost that occur as output increases is the law of diminishing marginal product . diseconomies of scale. economies of scale . constant returns to scale.
Fixed costs are best defined as costs that do not vary with output. the amount that one more unit of output adds to total costs. costs that decline as output increases.
The minimum efficient scale of a firm Multiple Choice is realized somewhere in the range of diseconomies of scale. occurs where marginal product becomes zero. is in the middle of the range of constant returns to scale. is the smallest level of output at which long-run average total cost is minimized.
Which of the following would be exhibited if a doubling of output can be achieved without doubling all the inputs? Decreasing returns to scale Increasing returns to scale Constant returns to scale Diseconomies of scale
Fixed cost is Multiple Choice the cost of producing one more unit of capital, for example, machinery. any cost that does not change when the firm changes its output. average cost multiplied by the firm's output. usually zero in the short run.
Diminishing marginal returns occur when: Group of answer choices the size of the plant is increased in the long run. the quantity of the fixed input is increased and returns to the variable input fall. units of a variable input are added to a fixed input and marginal product falls. units of a variable input are added to a fixed input and total product falls.
The reason the marginal cost curve eventually increases as output increases for the typical firm is because of Multiple Choice diseconomies of scale. diminishing marginal utility. diminishing marginal returns. increasing opportunity cost.
High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC 9SMALL Quantity of Output LARGE At low levels of output, ATC is high because AFC is high-the fixed plant is underutilized. At high levels of output (close to capacity), the fixed plant is overutilized, leading to high MC and, consequently, high ATC. It is diminishing marginal product that causes the MC, and eventually the AVC and ATC, to rise. In U-Shaped Average Total Cost Curve above Section 11.4 exhibit 2, why does AFC continue to fall even while ATC rises at very high output? Cost per Unit (dollars)
Variable costs are sunk costs. costs that change every day. costs that change with the level of production. the change in total cost due to the production of an additional unit of output.