4. On the graph, where do economies of scale exist? A. In the range of outputs from A to B. OB. In the range of outputs from B to C. OC. At point B only. OD. At point A only E. In the range of outputs from A to C. OF. At point C only. Long Run Average Costs B Output LRAC C

4. On the graph, where do economies of scale exist? A. In the range of outputs from A to B. OB. In the range of outputs from B to C. OC. At point B only. OD. At point A only E. In the range of outputs from A to C. OF. At point C only. Long Run Average Costs B Output LRAC C

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 21PAE

See similar textbooks

Related questions

Q: What is the potential impact of rapid economic growth on: a) A nation's tax base? b) GDP/Capita?…

A: Economic growth implies the upheld development in the production of goods and services inside an…

Q: The figure above represents the market for gadgets in Country H, a small country. Assume that there…

A: When the trade is open the rest of the world, the selling price is at $17. The demand at this price…

Q: Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Suppose…

A: Price index is a measure the change in cost of buying a goods basket relative to base year. Price…

Q: 1. (Chapter 2) Which of the following goods are likely to be classified as substitute goods or…

A: *As per the question guideline i have solve only the first question and the first three subpart of…

Q: Two functions are given for supply and demand P=2QS^2+QS+7 P=-QD^2-3QD+45 Can give us a fair…

A: To determine consumer and producer surplus and to estimate fair competition between demand and…

Q: Economies of scale in purchasing and ordering refers to: -all the answers are correct - the ability…

A: A consumer's purchasing power represents his or her ability to make purchases. The economy affects…

Q: If the average utility of good A is 15 and the average utility of good B is 25, you should: A. keep…

A: Average utility is an economic measure which calculates or measures average satisfaction received…

Q: What is market concentration and market power and how are they measured?

A: Market competitiveness refers to the competition between the firms and businesses. Each firm aims to…

Q: Consider an economy that is in steady state according to the Solow model. Now suppose that a…

A: In the Solow model, a steady state refers to a long-term equilibrium where the economy's capital…

Q: The Central bank views unemployment just as important as A;Inflation B;The money supply

A: Unemployment occurs when someone is willing and able to work but does not have a paid job. The…

Q: If the absolute value of the price elasticity of demand for season football tickets is 0.3, to…

A: The absolute value of the price elasticity of demand is 0.3We need to tell whether to increase or…

Q: Assume a good has a downward-sloping, linear demand curve. As the price of this good increases,…

A: Total revenue is the product of price and quantity. The downward sloping linear demand curve shows…

Q: 3. Now, suppose instead that there was a quota of 6 pounds imposed. a. Demand price = $ Supply price…

A: Quota rent is the additional profit earned by the domestic producers or the exporters, which they…

Q: What would be the impact in this market, of a price ceiling set at $13 a) A market surplus of…

A: A price ceiling is the price set by the government which is the maximum that should be charged from…

Q: economy is producing point production possib that they are producing efficiently, but we do not know…

A: The question is asking whether an economy producing at a point on its production possibilities…

Q: Hybrid cars Refer to the information provided in Figure 2.4 below to answer the .question (s) that…

A: Production Possibility Frontier is a graphical representation used in economics to illustrate the…

Q: Bruno is a landowner and Angela is a farmer who pays a share of her grain output to Bruno as rent…

A: Pareto efficiency, is that state of economy where resources cannot be reallocated once it allocated…

Q: Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand…

A: At the equilibrium price, the quantity demanded is equal to the quantity supplied.Equilibrium occurs…

Q: esources are allocated among industries in response to signals sent by both product and resources…

A: Economics is the social science that studies how individuals, businesses, and societies allocate…

Q: Klein Confess Cooperate Partly Confess Calvin Confess (-2,-2) (0,-5) (-1,-3) Cooperate (-5,0)…

A: Nash equilibrium is a concept in game theory where each player's strategy is optimal given the…

Q: The purpose of this homework assignment is to give you a better understanding of consumer and…

A: Consumer surplus is the area below the demand curve and above the equilibrium price level.Producer…

Q: Explain the critical difference that, accor markets respond to shifting demand. Wh self-stabilizing…

A: Goods markets are markets where goods and services are bought and sold. Asset markets are markets…

Q: The table shows the yield (in bushels per acre) and the total production (in millions of bushels)…

A: Logarithmic regression model: In this model, the explanatory variable is in logarithmic form. Here x…

Q: Account(millions of US dollars) A. Current Account Balance on goods Balance on services Balance on…

A: The balance of payments (BoP) is a comprehensive accounting system that records all economic…

Q: If the demand for sandwiches increases and sandwich makers produce the efficient quantity, what…

A: Consumer Surplus is the difference between what consumers are willing to pay for a good or service…

Q: The following graph illustrates the market for walnuts. It plots the monthly supply of walnuts and…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: i. ii. 111. Suppose there has been an increase in real wealth among all Americans. Identify which…

A: An increase in real wealth depicts the increase in cash holdings among consumers. It means that…

Q: Identify how each of the following individuals is influenced by unexpected inflation. a. A sales…

A: Inflation is the rate of increase in prices over a given period of time. When people are unaware of…

Q: Suppose that the utility function U(c, s) = c + 2s3 describes Molly's preferences over two goods:…

A: Molly has preference over two goods - Carrod & Spinach .Utility function : U = c + 2s1/3

Q: MAC = 50 - 5E. The government offers a $30 per-unit subsidy for abatement. In principle, the…

A: Total revenue determines the amount earned from the quantity produced. Economic costs involve not…

Q: How much money (in $, roundoff to 2 decimal places) would be available in year 10 if $8000 is…

A: Principal (P) = $8000Rate of interest =10%

Q: Wage Rate (5 per hour) 18 A 15 100 120 Quantity of un-skilled workers ('000) 140 The Figure above…

A: The wage rate is defined as the rate of wage given to a worker based on the hours worked. It is the…

Q: The following graph shows the domestic demand for and supply of maize in Bangladesh. The world price…

A: Imports refer to goods, services, or commodities that are produced in one country and then brought…

Q: In order to compare the market value of various things produced within an economy, a common unit is…

A: Currency refers to a medium of exchange for goods and services. In short, it's money, in the form of…

Q: Consider golfers who led the Professional Golfers' Association of America (PGA) in winnings at…

A: A consumer price index refers to a price index, the price of a weighted average market basket of…

Q: U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…

A: The initial cost in the plant is (A0) =$13 millionInvestment at the end of one year is $10…

Q: Share an example of something you paid for recently that was produced under monopolistic…

A: Monopolistic market structure is the mix of monopoly ( partial price control ) and perfect…

Q: The following table lists several terminants of aggregate supply. Complete the table by indicating…

A: The aggregate supply curve depicts the total quantity of goods and services produced at different…

Q: A = 4, B = 3, C = 2, D = 1, F = 0 Calculate the grade-point average

A: Average is obtained by adding all the observations together and then dividing the sum of observation…

Q: Help me

A: Given Utility Function : U=min{2x1,x1+x2}It is a complementary utility function where two goods are…

Q: The market equilibrium quantity is tons of steel, but the socially optimal quantity of steel…

A: This can be described as the concept that shows the amount of quantity that should be produced in…

Q: Price and cost (dollars per household) 30 A 25 20+ 15 10 5 0 G F 2 4 B ATC MC 6 8 Quantity (millions…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: According to the survival principle, only firms that markets. O maximize profits O minimize costs O…

A: The survival principle is a business and economic concept that emphasizes the importance of a firm's…

Q: Use the figure below, and the regular percentage change formula, to answer the following question:…

A: The price elasticity of supply is calculated as the percentage change in quantity supplied divided…

Q: Calculate firm profit for a market price of $8.000. Is this firm in a long run equilibrium? A)…

A: A perfectly competitive firm produces at P=MC in the short run. A perfectly competitive firm either…

Q: The figure to the right shows an industry composed of a single monopolistic domestic firm.…

A: Demand refers to the quantity that a consumer wishes to buy at given price in given period of time

Q: Suppose IP is the international trade price and this country's government imposes a $3 tariff on…

A: Demand curve is the downward-sloping curve. Supply curve is the upward-sloping curve. Equilibrium is…

Q: Suppose you are in charge to analyze the future price trend of a brand. What do you suggest about…

A: Disequilibrium in economics refers to a situation in which the supply and demand for a good or…

Q: Select all of the factors that will be reduced as a result of this change in the public budget.…

A: The red line represents the loanable funds market before the change in government spending. The blue…

Q: In which statement is the term "demand used correctly? (1) An increase in the price of copper will…

A: Demand is the quantity of a good or service that consumers are willing and able to buy at a given…

Question

4. On the graph, where do economies of scale exist?
A. In the range of outputs from A to B.
B. In the range of outputs from B to C.
OC. At point B only.
OD. At point A only.
OE. In the range of outputs from A to C.
OF At point C only.
Long Run Average Costs
B
Output
LRAC
C

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: Define economies of scale.

VIEW

Step 2: Choose the correct option.

VIEW

Solution

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 small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?
How does fixed cost affect marginal cost? Why is this relationship important?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
Refer to the to graph on the right. Which level of output in the graph below represents the minimum efficient scale? O A. 1,000 books B. 20.000 books C. 40,000 books $22 00 D. 80,000 books 20.00 18.00 Long-run Average cost 1,000 20,000 Quantity of books sokd per month 40,00D,000 Average cost
6. Why does Marginal Cost rise?
What are diseconomies of scale? Diseconomies of scale is A. when the marginal product of labor is decreasing with output. B. when the marginal cost of production is increasingwith output. C. when a firm's long-run average costs decrease with output. D. when a firm's long-run average costs increase with output.
Use the figure below to answer the following questions. Average cost (dollars per sweater) 12 H Select one: OA. Plant A OB. Plant B O C. Plant C O D. Plant D O E. none of the above 10 8 6 4 2 0 5 10 ATCA ATCB ATCC ATCD 15 20 25 30 Output (sweaters per day) Figure 11.4.2 Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which plant has the lowest average total cost for an output rate of 5 sweaters a day?
Average fixed cost, average total cost a -Why does average fixed cost continuously fall as output increases? b. And why does total average cost first fall at initial level of production as produc increases, and then it increases as production increases.
1. Distinguish between input and output. 2. Explain how input, output and cost are interrelated.
Refer to the to graph on the right. Which level of output in the graph below represents the minimum efficient scale? OA 1,000 books B. 20,000 books C. 40,000 books $22 00 D. 80,000 books 20.00 18.00 Which size bookstore is more likely to expenence diseconomies of scale? Long-nun Average cost O A. Abookstore selling 1.000 books per month B. A bookstore seling 20,000 books per month C. Abockstore selling 40,000 books per month 40,00.000 OD. A bookstore seling 80 000 books per month 1,000 20,000 Quantry of books sold per month
Christ Embassy Complete the fallowing ceA schedules LoutPutiohalcost Average cost Marginal cost LCA CHURCH3 2. 14 3. 4. 20 6. 6. 48 a At ahat autput is Ac et fte mininum. 3.At what output is Mc at the mininum? C.At hat output does AC Start increasing dAt what ortput does Mc tart ho be qrea ter tan Ac ? e what s te maximum autput. LERDERS &
. If total cost is increasing, marginal cost is positive. a. True O b. False