If a firm triples inputs and produces twice the output, then there are constant returns to scale. no returns to scale. decreasing returns to scale. increasing returns to scale.

Q: T ER Mc $78.00. $3.00. Multiple Choice 000 87.50 6.25 7.14 The average total cost of 5 units of…

A: Fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: A3

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

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: What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b. Returns to…

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: Using the numbers representing short run costs in the chart below, calculate the number that belongs…

A: We have blank for MC at q=5.

Q: Use the following data to draw a long-run average total cost curve. Label the range of diseconomies…

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Q: Q2. Law of diminishing marginal returns is applicable in both short run as well as long run.  is it…

A: The law of diminishing marginal returns expresses that as an ever increasing number of units of data…

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

A:

Q: A bus company employs two drivers and a bus to provide a bus route. What is the returns to scale of…

A: Returns to scale is a phrase that describes how proportionally changes in output change when all…

Q: Costs 80 MC AVC ATC 120 160 180 200 Refer to the graph above to answer this question. What does…

A: Cost refers to all the expenses that incur in the process of production of goods or services. These…

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: Help answer point C. e-invoice versus printed invoice

A: C. E-invoice refers to the electronic invoice that appears directly on the system whereas printed…

Q: Output   Total Cost 0 15 1 25 2 33 3 40 4 48 5 58 6 70 Table 8.5 Refer to Table 8.5. The total…

A: Variable Cost varies with the units of Output. Fixed Cost remains same at all levels of Output.…

Q: The law of diminishing returns explains diseconomies of scale O True False

A: A production function illustrates the relationship between the output produced in a production…

Q: If Boeing produces 9 jets per month, its long-runtotal cost is $9 million per month. If it…

A: Costs are the expenses that firms incur during the production processes. The firm’s costs depend…

Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…

A: As per the question, the short run is the period where the firm would not be able to adjust with…

Q: If you know that with 8 units of output, average fixed cost is $12.50 and average variable cost is…

A:

Q: Average Fixed Cost Average Variable Cost 0.00 S Average Total Cost 0.00 105.00 $ Total Product…

A: We know that the supply curve is the rising portion of the MC curve, which is over and above the…

Q: Long-Run Q 10 90 AC $

A: In the short run, some inputs are fixed and some are variable. Whereas in the long run, all the…

Q: Cost LRAC 40 30 20 10 100 200 400 800 Output c. What is the firm experiencing as it increased it…

A: The graph shows the long run average cost curve.  c) If the firm increases the scale of operations…

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

A: To produce 100 bikes using 1 factory, short run average cost is $360.

Q: 3. What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b.…

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.

A: Economies of scale: Economies of scale  are the cost advantage happens due to increase in…

Q: A firm have fixed cost of 70$ and a variable cost as indicated in the table. complete the table…

A: We have given a table in which variable cost (TVC) is mentioned and the total fixed cost is 70 We…

Q: Axel's business has grown to the point where he had to hire a payroll department and HR department…

A: Diseconomies of scale is when the firm is experiencing the increasing average cost when 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 is situation when producing more quantity of goods , the unit cost of…

Q: If all resources used in the production of a product are increased by 20 percent and output…

A: In economics, the cost of production is outlined because the expenditures incurred to get the…

Q: Suppose that, when producing 50 units of output, a firm's AVC is $30, its AFC is $8, and its MC is…

A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…

Q: 1. Economies and Diseconomies of scale 2. Graph of marginal cost, average cost and average total…

A: Hi! Thank you for the question but as per the guidelines, we only answer one question at a time.…

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…

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Q: If a firm can grow and have all inputs, both labor and capital, specializing in a single task, the…

A: The term "production" is used to describe the steps involved in creating an end product from raw…

Q: Quantity of cars Oa Ob Oc Od 1-8 6-8 1 2 46 3 4 5 6 7 8 LRATC of car $30,000 20,000 The wagon is a…

A: A firm which is long-run average total cost (LRATC) shows the average cost per unit of output over a…

Q: 6. Look at the table below. Identify two fixed costs. Cost Cost Rent 20,000 AED per month Insurance…

A: Fixed costs are those costs, which do not change with change in number of units produced. In…

Q: Diseconomies of scale are present when. Select one or more: O a. total costs fall as output rises O…

A: Large firms may experience economies of scale or diseconomies of scale as their output grow.

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…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.