efficient scale is houses.

Q: Explain the differences between diminishing marginal returns and diseconomies of scale.

A: Since the marginal return can be defined as the additional return by purchasing an additional…

Q: Explain how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

Q: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: Write about the production function with two and more than two variables

A: A function is basically a mathematical relationship between the dependent and the independent…

Q: Identify and describe three examples of economies of scale and three examples of diseconomies of…

A: Companies benefit from economies of scale as their production becomes more productive. Economies of…

Q: Think about several different types of industries or markets and the amount of time it might take to…

A: The measure that depicts the size of business operations that are being measured by the maximum…

Q: explain with graphs the difference between economies of scale, economies of scope and returns to…

A: Economies of Scale  An economy of scale is the expense advantage an organization has with the…

Q: Please choose two topics, one from Technical economies of scale and one from Pecuniary economies of…

A: Economies of scale are cost benefits that organizations gain when production becomes more efficient.…

Q: Show that increasing returns to scale can co-exist with diminishing marginal productivity

A: Meaning of Law of Variable Proportions: The term law of variable proportions refers to the…

Q: Derive the long run average total cost curve and show minimum efficient scale on it.

A: The money spent to purchase the factor of production to produce the final goods and services is…

Q: Explain the Law of Returns to Scale with the help of an example.

A: Long run refers to a period of time in which all the input of the firm are totally variable, that…

Q: Define the economies and diseconomies of scale and depict graphically how they relate to the long…

A: There are three types of returns to scale- Economies of scale The constant return to scale…

Q: Rather than have all the tasks in a production setting being done by the same person, but by…

A: In economics, the problem of scarcity which is universal in nature is studied and addressed. Because…

Q: Show me how to arrive at Average Variable Cost?

A: Total variable cost varies with the level of production.

Q: Why is having a business objective of increased economies of scale always desirable?

A: Economies of Scale in the Business World When it comes to economies of scale, the size of the…

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: Discuss whether economies of scale have any relevance to such companies as Wal-Mart

A: Economies of scale: When long-term average costs and output levels are inversely correlated, an…

Q: Define economics of scale and explain they might arise. Define diseconomies of scale and explain why…

A: Economies of scale apply to the property that as the quantity of product increases, the long-run…

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: Describe the two main types of internal diseconomies of scale?

A: According to the given question In simple words we can say that the internal diseconomies of scale…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false?

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…