88) The figure below shows a family of cost curves for a firm. The subscripts 1, 2, and 3 for the SRATC curves refer to different plant sizes. Cost FIGURE 8-2 B SRATC₁ D E SRATC₂ Select one: O a. technically inefficient methods of production, given that they lie above the LRAC. SRATC3 O b. the lowest cost attainable, given that the plant size is the largest it can possibly be. O c. the output that is possible when all factors of production are fixed. O d. the lowest cost attainable for any given plant size. O e. optimal plant sizes in the long run. F Q5 Refer to Figure 8-2. The points of tangency between each of the three SRATC curves and the LRAC curve show Output LRAC

88) The figure below shows a family of cost curves for a firm. The subscripts 1, 2, and 3 for the SRATC curves refer to different plant sizes. Cost FIGURE 8-2 B SRATC₁ D E SRATC₂ Select one: O a. technically inefficient methods of production, given that they lie above the LRAC. SRATC3 O b. the lowest cost attainable, given that the plant size is the largest it can possibly be. O c. the output that is possible when all factors of production are fixed. O d. the lowest cost attainable for any given plant size. O e. optimal plant sizes in the long run. F Q5 Refer to Figure 8-2. The points of tangency between each of the three SRATC curves and the LRAC curve show Output LRAC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Output TFC TVC TC MC АТС A 25 25 ---- -- ---- -- B 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the total cost at point E? 135 125 185 Cannot be determined
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If a firm decides to produce no output in the short term, which of the following costs will be zero: O Variable cost O Total cost Fixed cost O Capital Cost
Total fixed cost for this firm:
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