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Q: Are all fixed costs also sunk costs?
A: Sunk Cost: It refers to the cost that is once incurred can’t be recovered.Fixed Cost: It is the cost…
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Q: fall in the long-run cost curve
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Q: What should he recommend as a short-run remedy?
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Q: QUESTION 18 An input that cannot vary in the short run is called, a. Fixed input b. variable input…
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Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…
A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…
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: The short run is a time period that is A) long enough to change the size of the firm's plant. B) too…
A: Time period refers to the amount of time required for a factor to change. Time period influences the…
Q: Answer questions number 15 and 16 on the basis of the following output data for a firm. Assume that…
A: Given Number of workers Units of output 0 0 1 40 2 90 3 126 4 150 5 165 6 180
Q: Suppose the short run production function is q=10*
A: Given the production function, q = 10*L Wage rate = $10
Q: Assume that you have the following production function and input prices in the long run: 2 2 3 2 3 3…
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Q: Diminishing returns occurs in the short run because The average product of labor will decrease after…
A: A firm faces different market situation in the short-run as well as in the long-run.
Q: The short run is the time frame A) during which the quantities of all resources are fixed. B) during…
A: Production takes place in the short run while all planning is done in the long run.
Q: Why would labor be treated as a variable cost? labor costs will decrease as the firm produces more…
A: Fixed cost refers to the cost which remains same at all levels of output. It is independent of…
Q: Q1. In the theory of production, diminishing marginal returns to labour holds in the short run…
A: Since you asked multiple questions, we will solve the first question for you. If you want any…
Q: Joe's coffee shop has the production function, q= 4k0.5 L0.5. If the price of labor, L, is 5 and the…
A: q= 4k0.5 L0.5 PL = 5 PK = 20 q=200
Q: Explain how a change in the price of one input factor changes a firm’s long-run expansion path?
A: The firms, and businesses are the entities who are considered to be of utmost importance for the…
Q: The main difference between the short run and the long run is that firms earn zero profits in the…
A: There are two types of factor of production which are fixed and variable factor of production. The…
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- A leftward shift of a product supply curve might be cause by O An improvement in the relevant technique of production O A decline in the prices of needed inputs O An increase in consumer income O Some firms leaving the industryull touch LTE 10:08 PM O O 37% O A docs.google.com What is the relationship between a perfectly competitive firm's marginal cost curve and its short-run supply curve? * The marginal cost curve of a perfectly competitive firm is the firm's short-run supply curve at the point where price is less than average variable cost. The marginal cost curve of a perfectly competitive firm is the firm's short-run supply curve at the point where price is equal to or greater than average variable cost. The marginal cost curve of a perfectly competitive firm is the firm's short-run supply curve at all points. The two are unrelated Page 4 of 5 Вack NextFigure 9-16 $/4 MC 6.70 6.00 ATC 4.90 AVC 4.00 = MR 2.80 2.60 12 14 If the price-taker fırm in Figure 9-16 9-16.png is currently producing 6 units, then to maximize profit in the short run, it should keep producing 6 units increase production to 12 units increase production to 14 units increase production to 8 units O shut down
- Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.er 11 i Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. Now assume that an increase in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price will be Multiple Choice OO O the same as the initial equilibrium price, but the new industry output will be greater than the original output. greater than the initial price, and the new industry output will be greater than the original output. less than the initial price, but the new industry output will be greater than the original output. the same as the initial equilibrium price, and the industry output will remain unchanged. 23 11,229 X OCT all Z AQUESTION 33 Consider a major producer of liquid soap. Which of the following would not shift its supply curve of liquid soap inward (to the left)? O a. A substitute in supply becomes more profitable O b. Environmental regulations requiring the producer to use a more costly technology to produce liquid soap O c. An increase in the wage rate for factory workers who produce liquid soap O d. A decrease in the price of liquid soap
- If MR (marginal revenue) is less than MC (marginal cost), then the firm sould O a. decrease production O b. increase production O c. keep the production level constant O d. keep the prices constantThe firm depicted in Figure 7-10 is currently at point F producing 200 units of output per day. If it decides to increase its output level to 375 units, then it will Q 40 Figure 7-10 Dollars per Unit ATC LRATC ATC 200 375 Units of Output O adjust from point F to point G in the short run O be unable to adjust to point G in the short run because some inputs are fixed O be unable to adjust to point G in the long run because no inputs are fixed O be unable to adjust to point H in the short run because some inputs are fixed O adjust from point F to point H in the long runSuppose solar panel manufacturing is an industry subject to significant economies of scale, and there are currently three solar panel manufacturers all with identical costs. If the demand for solar panels is 5 times the quantity produced at the bottom of the long-run average cost curve, which of the following is most likely to happen to the solar panel manufacturing industry in the long run? O The number of solar panel manufacturers will increase O The price of solar panels will increase O The fixed costs of manufacturing solar panels will increase The quantity supplied of solar panels will decrease
- A firm in a perfectly competitive market has an average total cost of $40 for the 100th good it sells. Its fixed costs are $100. The average total cost of the 101th good is $41. If the market price is $50 this firm should O sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue. O sell 101 because price is greater than average total costs. O sell 101 goods because it adds to profits. O sell 101 goods because its fixed costs are so low. 55. つ25 MacBook Air 000 esc F1 F2 F3 F4 F5 F7 23 $ & 1 3 7 Q W E R Y tab A S F G caps lock C V B shift altA market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the profit-maximizing output quantityfor individual firms as the market leaves and thenreturns to long-run equilibrium.The following graph of long-run changes in a competitive market indicate that it is exhibiting Price ($) 10 9 8 7 6 5 4 3 2 1 0 0 Constant returns to scale 1 O External diseconomies of scale 2 ONeither economies nor diseconomies of scale The law of increasing marginal returns O Internal economies of scale of the firms 3 O Internal diseconomies of scale of the firms 4 5 сл D 6 51 52 53 7 8 D₂ 9 D3 10 Quantity
