Economies of ______ occur when a single firm can produce two products for a lower total cost than two firms can produce those same products. Group of answer choices scale. efficiency. scope. output.
Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…
A: Economies of Scale: Reduction of average and marginal costs in the long run due to an increase of a…
Q: rease in the short run ease in the short run
A: Cash balance refers to the part of income that people want to hold as cash in hand.
Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…
A: Answer to the question is as follows:
Q: Marginal cost intersects average total cost at minimum average total cost. True False
A: The price curve always intersects the typical total cost curve at its lowest point because the…
Q: You are the chief financial officer for a firm that sells digital music players. Your firm has the…
A: Marginal cost: It is the cost of producing an extra unit.
Q: Explain two reasons due to which economies of scale may arise. Write your answer within 40 words.…
A: Economies of scale refer to the cost advantage of the firms when they increase production. Economies…
Q: Suppose Kim is running a digital start up company. She had total costs of $10,000 providing service…
A: When it comes to economies of scale, the size of the company matters. The greater the company's…
Q: Select choices which are true about Marginal Costs. (Select all that apply.) (change in Total Cost)…
A: Marginal cost is that cost which is incurred when one additional unit of output is produced.
Q: List and describe the 4 Ps marketing mix for a tangible product from your own.
A: The marketing mix is the model that includes the tactics and actions related to the place, price,…
Q: A rice farmer wants to analyze his rice farming. Help the farmer to identify the costs incurred in…
A: There are various Cost/expenses being incurred by the firm depending on the nature of the firm and…
Q: Draw the short-run average total cost (ATC), average variable cost (AVC), and marginal cost (MC)…
A: Average total Cost is the total cost per unit of output. Average Variable Cost is the variable cost…
Q: Amazing is evaluating three locations for a second headquarters. Costs for construction at location…
A: The break even point is a total cash inflow point, that would be equal and use the total cash…
Q: . Over time Yasir decides to expand his business. In the long run he first experiences economies of…
A:
Q: In the ice cream industry, in the short run, what cost includes the cost of cream and sugar, but not…
A: The marginal cost- is the difference in overall production costs resulting from manufacturing or…
Q: Give the area that represents the following Total Cost Total Variable Cost Total Fixed Cost Total…
A: Total cost is the total expenditure incurred to produce goods and services during a specific period…
Q: If Farmer Jones plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she…
A: Total cost is the cost that includes the fixed as well as variable cost in the product.
Q: Explain the industry structure with graph and discuss the reasons for economics of scale and…
A:
Q: When diseconomies of scale occur: Multiple Choice C marginal cost intersects average total cost. the…
A: Whether the firm is having economies of scale or diseconomies of scale depends upon the long run…
Q: QUESTION 1 Match each of the following terms and descriptions Accounting Profit A. total revenue…
A: 1. Accounting Profit: It is the difference between revenue and cost. The cost includes only explicit…
Q: n the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average…
A: Introduction: Short-run is a term that asserts that at least one input is fixed while others are…
Q: Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no…
A: An economic profit is the distinction among the sales a industrial entity has acquired from its…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: In case of perfect competition there are large number of buyers and sellers. The firms sell…
Q: Gap has too many 12,500 square feet stores. The target store size is 6,000 to 10,000 square feet, so…
A: Cost advantages accrue to companies when their production processes become more streamlined. By…
Q: Productive efficiency means output (production) is produced in the long run at
A: A perfectly competitive market is the type of market structure in which several buyers and sellers…
Q: Klee Motors is a small car leadership. On average, it sells a car for $24 000, which it purchases…
A: It is given that the firm has a few fixed costs such as the rent which is equal to 60,000 per month,…
Q: What is the difference between accounting profit and economic profit? Select one: a. Accounting…
A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…
Q: Differentiate economies of scale and economies of scope
A: Meaning of Economics of Scale: The term economics of scale refers to the situation under which the…
Q: Accounting profits are: A.) economic profit less explicit costs. B.) less than economic…
A: "There are two kinds of costs explicit costs (are out of the pocket costs for a firm) and implicit…
Q: ART II: True/False and Multiple Choice In economics, implicit costs refer to the…
A: 1.Implicits costs are those that have been occurred but are not recorded or reported as an…
Q: discuss the following and draw and label diagrams. economies of scale and economies of scope
A: Economies of Scale: Economies of scale refers to a situation when the firm's average total cost in…
Q: Stretch the MC, ATC and AVC curves in a diagram. Explain the reason why MC and ATC curve is shaped…
A: The marginal cost (MC) shows the incremental cost incurred when one additional unit is produced. It…
Q: Suppose a firm producing cell phones is operating such that marginal costs are much lower than…
A: The marginal cost of the firm is the cost it will incur by producing one additional unit of output.…
Q: In the short run, the firm should continue to produce if and only if a.Price exceeds average total…
A: Total fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: 1)As a firm increases production, average total cost _____. a will stay the same b will decrease c…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Fixed Cost Average Fixed Cost Total Variable Cost Average Variable Cost Total Cost…
A: Marginal cost measures the additional cost incurred in order to produce an additional unit of…
Q: What is the term for the lowest level of output at which a firm's goods are produced at minimum…
A: please find the answer below.
Q: Mariam has a small bakery. She spends 200KD a month to rent a building for his company, 600KD a…
A: Mariam is using both fixed and varaiable inputs. Where labor is the only available input for her.
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…
A: Macroeconomics and microeconomics are important part of country mechanism. Aggregate demand and…
Q: a software production firm, average product has started falling and total output indicated…
A: A mathematical association between marginal product(MP) and average product(AP) expressing that the…
Q: A snowboard company currently hires 10 skilled employees who are paid a weekly wage of$1,000. The…
A: No. of workers hired = 10 Weekly wage per worker = $1000 Weekly wages for 10 workers = $ 10000 Fixed…
Q: Q3. The law of diminishing returns applies only to businesses with very simply production. Your…
A: The Law of diminishing marginal returns states that the increase of a single factor of production…
Q: What is the term for what you give up to obtain an item? Question 4 options: opportunity cost…
A: Implicit Cost:- The expenditure which have already incurred which isn't shown or acknowledged as a…
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- Which of the following is wrong? Select one: a. Economies of scale refer to the production of two or more goods and occur when joint production is less costly than the sum of the costs of producing each good separately. b. When the firm experiences economies of scale, its long-run average cost curve is downward sloping. c. The expansion path describes the cost-minimizing combination of inputs that the firm chooses for every output level. d. When costs increase proportionately with output, the firm’s long-run average cost curve is horizontal.Marginal product will eventually go down because of the law of diminishing marginal utility. the law of diminishing returns. economies of scale. all of the above.Differentiate economies of scale and economies of scope.
- Two firms producing identical products may merge due to the existence oft Multiple Choice economies of scope. economies of scale. cost complementarities All of the statements are comectA Vietnamese restaurant in Port-of-Spain decides to use a part of its dining hall to sell Vietnamese grocery items. How do you classify this expansion? a.None of these other available answer choices is b.Economies of scale c.Diseconomies of scope d.Economies of scope e.Economies of scaleA 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
- The fixed cost per unit is equal to: Multiple choice question. average variable cost. average total cost. average fixed cost. marginal cost.Q9 ABC is a small business producing instructional modules for disabled children in public schools. The modules produced by ABC are not differentiated and the market price is $1,300 per module. ABC operates in a small office that rents for $600 a month and leases computer equipment that costs $480 per month. The chart lists other cost of production. Output (Q) Fixed (Instructional Cost Modules Per month) 0 1 2 3 4 5 6 7 8 9 10 Variable Total Average Average Cost Cost Fixed Variable (TC) Cost (AFC) (FC) (VC) 1,080 400 1,350 1,900 2,500 4,100 5,400 7,300 1,480 2,430 4,280 10,880 216 135 Cost (AVC) 475 Average Total Cost (ATC) 965 Marginal Cost (MC) 400 450 700 1) Complete the chart and plot the following graphs: AFC, AVC, ATV, MC. Be sure to label axis and graphs. 2) How many instructional modules ABC will produce, assuming it is profit- maximizer? Explain your answer and show that on the graph. 3) Determine ABC's profit and shade the profit on the graph. 4) Given the level of ABC's…To make a decision about opening a restaurant, what is the relevant cost for Aram? $50 thousand has been spent to date on renovating the place. Aram could be earning $ 100 thousand a year as a chef. Additional labor and other costs necessary to open the restaurant equal $ 60 thousand a year. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $ 160 thousand a b. $ 60 thousand $ 210 thousand $ 110 thousand $ 50 million
- If the total cost of 20 units of a product is $20, and the total cost of 21 units is $21, then from 20 to Multiple Choice marginal cost is decreasing. marginal cost equals average total cost. marginal cost equals average variable cost. average total cost equals average variable cost. I units of product theMarginal cost is ________ average variable cost when ________.A) equal to; average total cost is minimized B) greater than; average fixed cost is minimizedC) equal to; average variable cost is minimized. D) less than; total cost is maximizedMultiple choice questions - Microeconomics 35) What is the firm’s efficient scale? A. the quantity of output that minimizes average total cost B. the quantity of output that minimizes average variable cost C. the quantity of output that minimizes marginal cost D. the quantity of output that minimizes average fixed cost 34) Marginal cost increases as the quantity of output increases. What property does this reflect? A. diminishing total cost B. increasing marginal product C. increasing total cost D. diminishing marginal product