firm aims at minimizing its cost. Which of the following statement is TI A. The firm's technology must exhibit decreasing returns-to-scale. B. The average production cost of the firm must increase as y increases. C. The average production cost function may be concave. D. Suppose the firm becomes subject to the short-run constraint that x2 = run total cost curve is always higher than the original long-run total cosi

Q: When there are positive fixed costs, can the average variable cost curve and average total cost…

A: We have 3 different costs, ATC, AVC and AFC where ATC is the sum of AVC and AFC. Given that are…

Q: As output increases, total fixed cost A. increases; decreases B. does not change; decreases C.…

A: total cost is the cost which is incurred by producer for production by using all fixe and variable…

Q: Explain in words why the Law of Diminishing Marginal Returns implies that there are increasing…

A: Law of diminishing marginal returns states that, as the production is continuous using factor of…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given: To Find: The short-run total cost if Ike's Bikes is currently producing 600 bikes: The…

Q: Why the average fixed cost curve does not touch the output axis ? YA AFC Output Cost

A:

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: Adam Smith is considered the father of economics. He was the first individual to notice that as long…

Q: QUESTION 25 The Marginal Cost curve crosses the Average Total Cost curve at its maximum. True False

A: "Marginal cost represents change in total costs when one more unit is produced while average total…

Q: The long-run is a period of time long enough so that all inputs, including facility and equipment,…

A: PLEASE FIND THE ANSWER BELOW.

Q: For a firm, constant returns to scale occur when the for the firm AFC ATC MC as the quantity…

A: ATC, or average total cost, is a term used in economics and business. It's a statistic used to…

Q: If a firm's average variable cost curve is rising, its marginal cost curve must be

A: If a firm`s average variable cost curve is rising, its marginal cost curve must be

Q: Use the following table to answer the questions:   Output Total Cost 0 24 1 33 2 41 3 48…

A: Fixed costs are those cost that are remain the same throughout all the level of production. Variable…

Q: b. If AC= Q?-4Q+10 i. Final the total cost and marginal cost function. Is this function is more…

A: TC = Q x AC = Q3 - 4Q2 + 10Q MC = dTC/dQ = 3Q2 - 8Q + 10

Q: a) True or False? Short-run average total cost curves have an "U the law of diminishing marginal…

A: The Law of Diminishing Marginal Returns posits that as one input is increased while others are held…

Q: Lesson 8 - Costs Question 4

A: The correct answer is:d. ATC intersects with AVC at the minimum of ATC.  This statement is correct…

Q: A firm with only fixed costs will have which of the following average cost relationships? As…

A: Average Total Cost is calculated by dividing the total cost with units of output. Average Cost =…

Q: Order the following components of a long run average cost curve as output expands based on which…

A: In the long-run, an average cost curve shows different phases of production when average cost…

Q: Figure 13-9 The figure below depicts average total cost functions for a firm that produces…

A: The entire cost of manufacturing divided by the total number of units produced yields the average…

Q: Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to…

A: Definitions In the short run, increasing input after reaching maximum capacity while keeping at…

Q: True or false 1-If the marginal product of labor is increasing, the marginal cost of production…

A: 1)Due to increase in marginal product,efficiency would increase,therefore cost would decrease.…

Q: Which of the following statements are true about Marginal Cost (MC) and Average Cost (AC)? 1. MC is…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per…

A: Given data: Total cost function TC=$1000+$6X Quantity X=3000 units

Q: bath the marginal cost and the average variable cost curves are U-shaped, at the minimum point of…

A: Average total cost is the sum of average Fixed cost and average variable cost. It is referred as…

Q: What is difference between fixed and variable cost in short run? How does this result in the classic…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: A firm’s marginal product will be at a maximum at which of the following levels of output?…

A: To determine the level of output at which a firm's marginal product will be at a maximum.

Q: The total cost of producing 3 products is given by:   TC=2A+3B+4C+2ABC   1. Is the total cost…

A: The total cost (TC) function is a mathematical depiction of the total cost incurred by a firm to…

Q: * 25 20 15 LRAC 10 5 10 15 20 25 30 Quantity (units per hour) Cost (dollars per unit)

A: Economies of scale occurs when LRAC decreases as quantity increases Diseconomies of scale occur when…

Q: Write T if the statement is True, and F if otherwise. 1. Isocost curves show the cost of the firm in…

A: An Iscost curve is a curve that implies a combination of inputs that a firm can buy to produce a…

Q: Can a firm have diseconomies of scale, econmies of scale and constant returns to scale

A: Economies of scale is when the ATC decreases with the increase in quantity.  Diseconomies of scale…

Q: 800 Is 720 640 SRATC, 560 480 SRATC, 400 320 SRATC, 240 160 LRATC 80 100 200 300 400 500 600 700…

A:

Q: For producing 200 chairs, the total fixed cost is R.O 2,000 and total variable cost is R.O 1,500.…

A: Firms incur various types of costs while conducting business operations or undertaking any…

Q: A firm has the production function y = 4LK. The marginal products are given by MP, = 4K and MPK =…

A: Given  Production function: y= 4

Q: What is the shape of the average variable and average total cost curves and average  fixed cost?…

A: One of three average curves is the average variable cost curve. The average variable cost curve is…

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: What number goes where the highlighted question marks are? In other words, what is the last number…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Costs per unit H Quantity of output 64. Refer to Figure 8-5. Identify the curves in the diagram. a.…

A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…

Q: Assume that Peter's short run Total Cost Curve is TC = 20,000q- 200q² +q*. Calculate his (short run)…

A: Average total cost is total cost divided by quantity.  ATC = TC / q => ATC = (20,000q - 200q2 +…

Q: 4. Questions and Diseconomies of scale The law of diminishing marginal returns erence between the…

A: Law of diminishing marginal return applies to short run where at least one factor is fixed

Q: The slope of an average cost curve exhibiting diseconomies of scale is -- Infinite O Zero O Negative…

A: In a market, diseconomies of scale refer to the situation when a firm faces an increase in the…

Q: A firm has the production function f(x, y) = x³yº.3, where a>0.7. This firm has Select one: O a.…

A: Given  Production function : f(x,y) = x^a × y^0.3 , where a>0.7. To check whether it has what…

Q: LRATC minimum ATC A between points A and B. B to the left of point A. to the right of point B. at…

A: Diseconomies of Scale : Diseconomies of scale can be defined as that situation when as output…

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale takes place when there is reduction in the cost of production with the…

Q: How does the impact of fixed costs change production decisions in the short run and in the long run?…

A: Fixed cost refers to the cost which remains the same at each level of output. It means that fixed…

Q: Diseconomies of scale exist over the range of output for which the long-run average cost curve is a.…

A: The firms are considered to be the producers who work with the motive of earning maximum possible…

Q: In the figure, the intersection of curves A and B is the point at which 20 16 20 40 60 80 Quantily…

A: