Long-run total cost (dollars) Quantity 20 100 40 160 60 180 80 190 The cost data in the above table data show that production is characterized by More information is needed to answer the question. decreasing returns to scale. economies of scale. constant returns to scale.

Q: Suppose you are a producer of motor vehicles, explain with the use of examples the difference…

A: Economies of scale exist when since a long time ago run normal total expense diminishes as yield…

Q: In a short-run production process, a diminishing marginal product of labor explains why marginal…

A: Marginal Product of Labor:  The term marginal product of labor shows that how much additonal or…

Q: A firm has fixed costs of $60 and variable costs as indicated in the table at the bottom of this…

A: The values are found out by: TC=TFC+TVCAC=AFC+AVCAFC=TFCQAVC=TVCQMCN=TCN-TCN-1

Q: *33) Economies of scale exist when the A) total cost of production falls as the output increases. B)…

A: Economies of scale alludes to the peculiarity where the normal expenses per unit of result decline…

Q: When average product increases, which short-run cost variable also changes? The output range over…

A: Marginal cost refers to the change in total cost with respect to change in output. Average total…

Q: Given the cost information below, answer the following questions. Output Total Cost $10.00 1 19.76 2…

A: Hi! thank you for the question but as per the guidelines, we answer up to three sub-parts. Kindly…

Q: If a firm is experiencing economies of scale, doubling inputs will: double output. more than double…

A: Economies of Scale: The economies of the scale refer to the gain that arises due to the increase in…

Q: UESTION ONE   1.1 Discuss the relationship between the three short-run total cost curves. Use a…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which long-run average total cost (LRTC) graph exhibits diseconomies of scale? LRATC LRATC

A: "Correct option is the first graph which is upward sloping."

Q: If all resources used in the production of a product are increased by 20 percent and output…

A: In economics, the cost of production is outlined because the expenditures incurred to get the…

Q: A business incurs the following costs per unit: labor $125/unit, materials $45/unit, and rent…

A: In the short run, a firm will have two types of cost: fixed cost and variable cost.A).Total variable…

Q: Question 18 The upward sloping portion of a long-run cost curve illustrates: Diminishing marginal…

A:

Q: A Closer Look in the Economies of Scale   Businesses wanted to reduce their cost to the minimum…

A: Companies benefit from economies of scale when their production gets more efficient. Economies of…

Q: 1. Economies of scale Web Slinger is an Internet service provider. In the long run, Web Slinger can…

A: Answer: To derive the long-run average cost curve, we need average cost. The average cost schedule…

Q: When a firm experiences economies of scale in production, a. long-run average total cost declines as…

A: In the long run, firm can change its all factors of production and produce the output where the…

Q: Explain the general shape of the long run cost curves in relation to economies and diseconomies of…

A: The shape of long run cost curve changes depending on the returns to scale.

Q: Some individuals decry the decline of the small family farm and its replacement with the huge…

A: The situation of reducing the total cost during the process of increasing production is referred to…

Q: Consider a small photography studio with 6 workers and 3 The total cost of labor and capital is…

A: In economics, the cost of production is defined as the expenditures incurred to obtain the factors…

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: Labor Output Fixed Cost Variable Cost (Number of workers) (Units) (Dollars) |(Dollars) 30 100 30 15…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost is the cost that remains same at…

Q: ) The short run is a time period in which: (a) all resources are fixed.…

A: In economics, we study the interaction and the decision-making of the economic agents at the…

Q: 4. Questions and Diseconomies of scale The law of diminishing marginal returns erence between the…

A: Law of diminishing marginal return applies to short run where at least one factor is fixed

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: Give business examples of short-run costs, economies of scale, and minimum efficient scale (MES).

A: At the Mininum effiecient scale point, the company could achieve the economies of scale being…

Q: If average total costs increase when the output level increases, then there are diseconomies of…

A: The expenses that are being incurred for running a business and carrying out its various…

Q: Consider the following information on long run total costs: Output 1 2 3 4 5 6. 7 Total Costs 50 90…

A: Output Total Cost Marginal Cost ATC 0 0 0 0 1 50 50 50 2 90 40 45 3 123 33 41 4 160 37 40…

Q: Refer to the above diagram. Diseconomies of scale?

A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…

Q: Question 11 Refer to the Long Run Average Total Cost curve below to answer the following questions:…

A: Hi. since there are multiple questions we will answer only the first three questions.

Q: What is the term for the change in total cost resulting from a one-unit increase in production?…

A: please find the answer below.

Q: if a firm hire workers at $3 week , labour is 1 and output is 6 what is the fixed cost, variable…

A: Wages (W) is given as $3.Labor (L) is 1.Output (Q) is 6 units.

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: Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns…

A: Diseconomies of scale occurs when a firm's Average cost increases with increase in the output.…

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

A: Average cost is the cost of producing one unit of an output. Average cost is calculated as the ratio…

Q: Diminishing returns* characterize all stages of production. eventually occur in all short-run…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: The downward-sloping segment of the long-run average cost curve corresponds to *…

A: In production activity, time period under consideration determines the nature of costs faced by the…

Q: A firm experiemces A) diseconomies of scale, average total cost curve slopes downward B) economies…

A: C)diminishing marginal Returns; average total cost curve shift upward

Q: Distinguish between economies of scale and diseconomies of scale. Give examples of why a firm may…

A: The long-run average total cost curve declines because apparently, the firm becomes efficient in…

Q: Explain the three categories of rreturns to scale relating to the long-run average cost curve

A: Returns to scale shows how the proportion by which output change in response to the change in all…

Q: Explain the difference between economies and diseconomies of scale. Provide examples of when an…

A: Economies of scale occurs when the long run total average cost would reduce as the number of units…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.