73. What can cause decreasing returns to scale? communication problems bureaucratic red tape possibility that decisions will not be coordinated
Q: Explain the law of diminishing returns.asap
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Q: If Boeing produces 9 jets per month, its long-runtotal cost is $9 million per month. If it…
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A: Workpiece feet from M to D = 22 * 9 = 198Workpiece feet from M to S = 34 * 5 = 170Workpiece feet…
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: 5. True or False. The U shape of the long-run ATC curve is the result of diminishing returns..
A: We are going to explain the concept economies of scale to answer this question.
Q: 3. What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b.…
A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…
Q: Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.
A: Economies of scale: Economies of scale are the cost advantage happens due to increase in…
Q: QUESTION 20 Solve the problem. 750,000 + 0.55x The average cost per unit, y, of producing x units of…
A: The given average total cost (y) function, y= 750,000+0.55xx The ATC should not exceed $8.05. So,…
Q: 3. As marginal cost rises, average variable cost necessarily rises. True False
A: Marginal cost (MC) curve is the incremental cost of production, i.e. the cost incurred when one more…
Q: Quèstion 33 The increase in total cost that results from producing one additional unit of output is…
A: Average Fixed Cost is the total fixed cost per unit of output. Average Variable Cost is the total…
Q: 2. Match the descriptions below to the appropriate concept: A. Economies of Scale B. Efficient Scale…
A:
Q: 16. If a firm increases both its plant and labor by the same pa the firm is experiencing A.…
A: The changes in long-run average cost with respect to output decide whether the firm is experiencing…
Q: Question 4. (a) Explain how the long-run average cost curves will differ between a private hospital…
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Q: 9) A chocolate company makes truffles using labor and capital. The company pays the workers $12 per…
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Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: The average total cost (ATC) measures the total cost incurred by a firm for every output unit it…
Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: 4. F&D Manufacturing company increases all its inputs by 50 percent each. If F&D's output increases…
A: The suppliers, firms, producers, and businesses tend to make up the supply side of the markets.…
Q: variable costs (AVC), average total costs (ATC), and marginal costs (MC) to fill in the missing…
A: Fixed cost refers to the cost that stays same at all levels of output. Variable cost is the cost…
Q: A. Graph total fixed cost, total variable cost and total cost B. Explain how the law of diminishing…
A: Answer A. TVC + TFC = TC Both TC and TVC run in concurrently. The x-axis of TFC is parallel. At zero…
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Q: Research an instance of an actual firm that has been engaged in cost-cutting measures. What actions…
A: We are considering an example of Dell EMC. Cost-cutting refers to measures executed by an…
Q: c. When output is 3, average variable cost is $ d. When output is 4, average total cost is $ e. When…
A: Total cost(TC) consists of fixed cost(FC) and variable cost(VC) Fixed cost is the one that doesn't…
Q: Fill in the table Costs of Production of a Soap Manufacturer Bar of Soap (Quantity) Total Fixed…
A: Total Cost: Total cost is the sum of money spent to produce goods and services. IT refers to the…
Q: 8. Why is the Minimum Average Total Cost and Efficient Scale important?
A: Average Total Cost : The average cost or average total cost is per unit cost incurred by the firm in…
Q: 4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $250 and the…
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Q: Question 4 of 20 Total Average Average Average Fixed Variable Total Output (Q) Total Marginal…
A: For the cost data shown above,what is this firm's Average Total cost (ATC) when output is 4.
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: Short Run Production Relationships List and explain the 3 Short Run Production…
A: Production function is neoclassical production function. It is upward sloping, concave and marginal…
Q: 3. As marginal cost rises, average variable cost necessarily rises. * True False
A: Marginal cost (MC) curve is the incremental cost of production, i.e. the cost incurred when one more…
Q: Costs in the short run versus in the long run Ike’s Bikes is a major manufacturer of bicycles.…
A: We can clearly represent the table as follows Here, the left most column represents the number of…
Q: "When the total cost of production decrease, we can say that the firm faces positive return to…
A: The firm would result in the production of the various goods and services which would involve the…
Q: d. Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns…
A: Diseconomies of scale is occurs when the per unit cost of output increases as output level increases…
Q: 26. Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to…
A: Labor is one of the four factors of production used in production of goods and services, among land,…
Q: 4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $200 and the…
A: * SOLUTION :- By using the formulas we write the table AFC=FC/Q AVC=VC/Q ATC=AFC+AVC
Q: Explain the law of diminishing returns. Asap
A: Meaning of Production Function: The term production function refers to the situation under which a…
Q: 4) What is the total variable cost?
A:
Q: Quantity Average Fixed cost Fixed Cost Total Total Average Variable Total Cost Average Total cost…
A: A company must bear two forms of costs while production, variable costs and stuck costs. Variable…
Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…
A: Define economies of scale and explain why they might arise. When the long-run average total…
Q: Instructions: 1. Complete the table making the appropriate calculations. 2. Graph Fixed cost,…
A: fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: tion 32 ne vertical distance between average variable cost and average total cost represent 2…
A: OPTION A - AFC ATC = AFC + AVC AFC = ATC - AVC AFC is always positive. AFC keeps on decreasing as…
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: The expenses incurred in the production of a good or service is known as cost. The total cost is a…
Q: 40) When a decrease in the scale of production leads to higher average costs, the industry exhibits…
A: Return to scale is the change in output level due to the increase in input variables in the…
Q: 5. Economies of scale occur when a. the long run total cost is decreasing b. the long run total…
A: Answer to the question is as follows :
Q: 10. Explain why economies of scale is important
A: Economies of scale: It refers to the reduced cost per unit of output of a commodity because of the…
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- What is die difference between accounting and economic profit?Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costsBased on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
- In choosing a production technology, how will firms react if one input becomes relatively more expensive?Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
- The manager of the donut shop tells you that hesells donuts for $1 each, and that if he were to makeadditional donuts, based on his current level ofoutput, it would cost him $0.80 per donut. Do yourecommend that the manager increase or decreasethe number of donuts he makes?Course dashboard Generally, economies of scope are present when. Lutfen birini seçin. O a joint output is greater from a single firm producing two goods than could be achieved by two different firms each produoing a single product (assuming equivalent production anputs in both situations). O b.egonorues of scale are constant in the joint production of twaproducrs Oc egonomes of scale are present in the preduction of tvo or more coods Od.joint.otputis less from a single firm than could be achieved fomtwedifferent firms SLuations) SONRAKİ SAYFA FAWhat is the difference between accounting profit and economic prof? A Economic profit subtracts both explicit and implicit costs from total revenue, while acounting profit only subtracts explicit costs. OR Accounting proft only subtracts implicit costs from totsi revenue, while economic profit only subtracts explicit costs. OC Economic proft orly subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting proft suberacts both explicit and implicit costs from total revenue, while economic proft only subtracts explicit costs
- 2500 2000 1500 Returns te scale: 0.33 1000 Price 2 10 15 20 25 30 Size dength in feet) 35 40 Rental price 100 The interactive above is from the loarning object, it will automatically find the profit maximizing length of the truck Adam should rent at given prices, rental rates, productivities, and returns to scale. It only the productivity of the truck Adam chooses to rent decreases, which of the following would be true at the new profit maximizing level of output and length of truck? Select the two that apply O A decrease in marginal cost O A decrease in total costs O A decrease in total revenuo O An incroase in the amount of labor Adam hires RevenueMarginal cost is given by 20 + 10Q- 12Q2. Fixed cost is 100. What is the average cost? O A. 100 -3Q2 + 20Q + 20 + 20 O B.402 + 5Q+80 + 20 OC3Q2 + 10Q+ 80 + 100 4Q2 + 5Q +20 + Type here to search ASUS VivoBook SC 图 prt sc insert (3 ) f7 f9 home f11 Pgup f12 Pgdn fo f10 end & 7 4 %$4 5. 1/2 #3 of 3.The Calhoun Textile Mill is in the process of deciding on a production schedule. It wishesto know how to weave the various fabrics it will produce during the coming quarter. Thesales department has confirmed orders for each of the 15 fabrics produced by Calhoun.These demands are given in the following table. Also given in this table is the variablecost for each fabric. The mill operates continuously during the quarter: 13 weeks, 7 daysa week, and 24 hours a day.There are two types of looms: dobbie and regular. Dobbie looms can be used to makeall fabrics and are the only looms that can weave certain fabrics, such as plaids. The rateof production for each fabric on each type of loom is also given in the table. Note that ifthe production rate is zero, the fabric cannot be woven on that type of loom. Also, if afabric can be woven on each type of loom, then the production rates are equal. Calhounhas 90 regular looms and 15 dobbie looms. For this problem, assume the time requirementto change…