Figure 7-4 Quantity of Output Total Fixed Cost Total Variable Cost $25 $25 $25 $25 $25 $10 $15 $25 $40 1 2 4

Please no written by hand Acme, Inc. is currently producing 12,000 gadgets per year. Acme’s average total cost (ATC) is $18 per year. What is Acme’s total cost (TC) per year? a. $667 b. $108,000 c. $216,000 d. $500 e. $1500

B. the rodu g one m Average Variable Cost C. fixed costs divided by output D. total cost divided by output v Marginal Cost QUESTION 5 20 points Save Answer Match each of the following terms and descriptions Constant returns to scale when the average cost of producing each individual unit A. declines as total output increases Diseconomies of scale average cost of producing each individual item increases as В. output increases economies of scale average cost of producing each individual unit remains C. constant as output increases Long Run Average Total Cost Curve the relationship between output and costs over the life of a D. business Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit ype here to search W 63°F Ca ) ENG 8:10 PM 10/18/2021 hp

5. True, false, or uncertain? Explain briefly but specifically. a. A cost function exhibits diseconomies of scale if the marginal cost rises as output decreases. b. Short run average cost is always at least as much as long run average cost.

Use the following information: Cost Volume $15,000 3,000 $18,000 4,000 $20,000 7,000 The fixed cost element for the firm is a. $11,250 b. $10,250 c. $12,250 d. $11,350

Read the question and given information carefully. Show all necessary steps and reasoning that lead to the answers. You nead to draw graphs.  a-Define diseconomies of scale and draw the long run average cost curve of a company that demonstrates diseconomies of scale b-List 2 reasons of diseconomies of scale and (in no more than 50 words for each reason) explain how each reason can contribute to diseconomies of scale