When economies of scale are large, firms can reduce their average total cost by: Multiple Choice selling off their subsidiaries. eliminating the bureaucratic costs. merging into even larger firms. hiring professional managers
Q: If a company has a monthly fixed cost of $24,000 and variable cost of five dollars each to produce…
A:
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A: Implicit cost refers to the opportunity cost of the resources which is owned by the owner of the…
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Q: All of the following are examples of common fixed costs except Multiple Choice sales commissions…
A: Fixed cost are that cost which is fixed in nature , which is not changing so we can find the answer…
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)…
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A: Break-even analysis explains the relationship between revenue and cost(cost = Fixed cost + variable…
Q: Diseconomies of scale occur when:A) average total cost increases as output increases.B) average…
A: The process of production is the combining of the raw materials and the skills and knowledge of the…
Q: Short-run costs that do not depend on the level of output are A) total variable costs only. B) total…
A: The cost is the money spent to purchase the factor of production by the producer. There there are…
Q: Normal profits are Multiple Choice the profits reported by accountants on a firm's annual…
A: ANS Profit is given by subtracting Total Cost (TC) from Total Revenue (TR). Mathematically it is…
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A: Fixed cost = $400 Additional cost =$10 x 57,760 boxes = $577,600 Storage cost of 57,760 boxes = $5 x…
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…
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A: Economies of scale occurs when firm increases level of production and average of cost of production…
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A: Total cost is the sum of fixed cost and variable cost in which fixed cost is independent of output…
Q: According to Accountants cost of production consists of both explicit and implicit cost ………………. a)…
A: (b) - False
Q: mine if the The ATC is rising when the MC is below the ATC. ATC= True FC + VC Q Answer Bank All…
A: Cost, in like manner use, the financial worth of labor and products that makers and shoppers buy. In…
Q: Diseconomies of scale occur mainly because
A: Diseconomies of scale is associated with the increasing cost per unit with increase in the scale of…
Q: he variable cost to make a certain product is $71 per unit. Research indicates that the lowest price…
A: Given, VC = $71 per unit Lowest price = $156
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Q: Average fixed cost is 0 at zero level of output True/False
A: # Average fixed cost is given by the ratio of total fixed cost and total quantity.
Q: When a firm is experiencing economies of scale, long-run Group of answer choices average total cost…
A: Economies of scale is a situation in economy where the organizations or firms are able to produce…
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Q: q3- The average total cost curve is increasing when marginal cost is: Select one: a.…
A: The relationship between ATC and MC is: When the MC curve is above the ATC curve then the ATC…
Q: Average fixed cost Multiple Choice may be found by adding average variable cost and average total…
A: Average fixed cost:- Average fixed cost is fixed cost of production per unit of output.…
Q: Average variable cost: first tends to decrease, and then increase as output expands. remains…
A: Average variable cost (AVC) is a firm's variable costs (labour, raw materials, electricity, etc.)…
Q: Implicit and explicit costs are different in that: Multiple Choice the former refer to…
A: Implicit costs are opportunity costs, while explicit costs are expenses paid with a company's own…
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A: The economies of scale curve is a long-run average cost curve since it permits all variables of…
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: Fixed costs and Variable costs are considered to be costs.
A: The factor of productions are the labor, raw materials, capital, land etc which incurred some cost.…
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A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…
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: Average fixed cost decreases as quantity increases. True False
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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: When the production starts, the value of Total fixed cost is 0 True/False
A: # The value of total cost is given by combining together the fixed costs and the variable costs…
Q: profit-maximizing rule
A: The Total Revenue (TR) is generated after selling all the output in the market. The Total Cost (TC)…
Q: Marginal cost is calculated for a particular increase in output by Question 1 options: A)…
A: Marginal cost refers to an additional cost of producing one more unit of output.
Q: The cost that cannot be recovered if a firm goes out of business is known as __________. a. Cost of…
A: If a firm goes out of business then some of the costs can not be recovered such as Advertising…
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: 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: Average variable cost does NOT equal: Select one: a. total cost minus fixed cost divided by output.…
A: In the field of economics, the expression "average variable cost" portrays the variable expense for…
Q: Compare and contrast economies of scale and economies of scope. Give an example of each from your…
A: Introduction Economies of scale: Economies of scale occur when the quantity of goods increases and…
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A: Minimum Efficient scale is a point between economies of scale and diseconomies of scale.
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- It costs a coat manufacturer $8750 to make 125 coats and it costs $6500 to make 80 coats. Each coat is sold for $250. a. How much is the marginal cost? Round to two decimal places if rounding is necessary. Do not enter a fraction. There is a $ sign next to the answer box, so do not type a $ sign in your answer. Only type a number (do not type any units on your answer). $ b. What is the slope of the Profit function, P(x)? Round to two decimal places if rounding is necessary. Do not enter a fraction. There is a $ sign next to the answer box, so do not type a $ sign in your answer. Only type a number (do not type any units on your answer). $ c. How many coats must be sold in order to break even? Round to the nearest whole number if rounding is necessary. Do not enter a fraction. Only type a whole number (do not type any units on your answer).How profit is different from the incorporating normal profit and when the normal profit is into average cost curve?When output is zero, total fixed cost is zero. O True O False
- The table below shows the cost of producing model vintage cars for collectors. Instructions: Enter your answers as a whole number. a. Complete the marginal cost column in the table. Vintage Model Car Production Costs Total Fixed Cost Total Variable Cost (dollars) Total Cost (dollars) $2,000 (dollars) $2,000 Marginal Cost (dollars) Output $0 1 2,000 600 2,600 2,000 1,100 3,100 2,000 1,900 3,900 4 2,000 2,900 4,900 5. 2,000 4,150 6,150 b. What is the total cost of producing 4 vintage model cars? 2. c. What is the marginal cost of producing the 4th vintage model car? 2.When marginal cost equals average variable cost, average variable costiv (Click for List) falling constant at a maximum at a minimum risingA computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. Create a table that shows the company’s output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate
- Calculate TFC if average fixed cost is $30 and output is 50A computer company produces affordable, easy-touse home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. a. Create a table that shows the company’s output, total cost, marginal cost, average cost, variable cost, and average variable cost. b. At what price is the zero-profit point? At what price is the shutdown point? c. If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss. d. If the firm sells the computers for $300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss.The table below shows cost data for WipeOutSki Company, which manufactures skis for beginners. If the company's fixed costs are $30, what is the average total cost in B? Variable Fixed Total Average Cost $30 $30 $30 $30 $30 $30 $30 Quantity Cost Average Total Marginal Cost Cost Variable Cost Cost $10 $25 $45 $70 $100 $135 1 2 A 345O
- Marginal cost is equal to the change in average variable cost divided by the change in total output O fixed cost divided by the change in total output O variable cost divided by the change in total output O average total cost divided by the change in total outputThe following statement describes which source of low costs? “The more the firm has ever made, the better it gets at making.” Group of answer choices Learning curves Economies of scale Diseconomies of scale Differential low cost accessTotal cost is 1200.output is 20.fixed cost is 1000.what is variable cost?