In the long run, a firm will choose a plant size that has the   Multiple Choice minimum average total cost of producing its target level of output.   capacity to produce the largest quantity of output. minimum of its average fixed cost.   maximum level of resource use per unit of output.

Q: What are economic costs? Group of answer choices Any contractual obligation that results in a flow…

A: The economic cost is the mix of misfortunes of any merchandise that has a worth joined to them by…

Q: Your friend is thinking about opening a wine bar. He estimates that it would cost $400000 per year…

A: Basics:- Cost of wine bar        = $ 400000 Opportunity cost       = $ 120000 (Accountant job)…

Q: Marginal product will eventually go down because of  the law of diminishing marginal utility.  the…

A: The marginal product of a factor input is the additional output that is generated when an…

Q: If a firm's average total cost remains constant as output grows, the firm has constant returns to…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: ATC is decreasing, is ATC is above (greater), equal, or less (below) than MC? ________ choose one…

A:

Q: Let x denote the level of output of a firm’s production process. The cost function is given by C (x)…

A: Profits are the excess of revenue receipts over the costs incurred by the firm. To maximize profits,…

Q: Long-run average total cost (Multiple Choices )     might have an upward-sloping segment that…

A: Long run average total cost is the long run cost per unit. Economies of scale refer to the situation…

Q: Average fixed costs of production will rise at a fixed rate as more is produced. appear as a…

A: In microeconomics, the average fixed expense is the fixed expenses associated with the production…

Q: If marginal cost is below average total cost, then average total cost    Question 10 options:   a)…

A: Marginal cost is the additional cost incurred when production is increased by one unit.

Q: All of the following are examples of common fixed costs except Multiple Choice sales commissions…

A: Fixed cost are that cost which is fixed in nature , which is not changing so we can find the answer…

Q: The maximum loss a firm should experience in the short run is equal to: a) a) zero b) b) total costs…

A: In the short run, the firm will not exit the market if the average total cost exceeds the price…

Q: (a) Let production be Q(L) = 100 L² - L³ and costs be C(Q) = 250L +600. Show how average costs…

A: a) Show how average costs change as Q rises.  Explain why it behaves in the way it does. You can use…

Q: Which of the following is an explicit cost? The opportunity cost of an owner/entrepreneur’s time…

A: An explicit cost is an out of pocket expense that is incurred in the course of production of a good…

Q: Where Q = quantity, TC = total cost, TFC = total fixed cost, and TVC = total variable cost; average…

A: The average variable cost is the total variable cost per unit of output. The total variable cost is…

Q: Which cost concept is used to determine the level of output at which a firm neither makes a profit…

A: While inspecting the monetary parts of a business, different cost ideas become an integral factor.…

Q: Due to the diminishing marginal returns in the short run production, for a typical firm, in the…

A: Diminishing marginal returns refers to the situation when firm is facing an increase in marginal…

Q: nal cost Multiple Choice O equals both average variable cost and average total cost at their…

A: The marginal cost measures the change in the total cost when one additional unit of output is…

Q: Increases in long-run average cost that occur as output increases is the law of diminishing marginal…

A: Understanding the relationship between output and cost is crucial for businesses to make informed…

Q: If Open Text, a firm in Kanata, Ontario decides to stop production in the short run, its costs will…

A: In economics, the two types of costs that a corporation incurs when producing goods and services are…

Q: j) If All-Leather produced the amount of leather given in your answer to (h), how much would Enjoy…

A: If All-Leather produced the socially optimal level of leather, which is 10,000 units, then Enjoy…

Q: Fixed costs are best defined as costs that do not vary with output. the amount that one more unit of…

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: If you know that when Bombardier, a hypothetical firm in Montreal produces 10 units of output, total…

A: Here, given information is: Total output: 10 units Total cost: $1,030 Average fixed cost: $10 To…

Q: If producing more output increases average cost then         a)there are diseconomies of scale.…

A: Answer to the question is as :

Q: Eccles Incorporated (based in Ogden) manufactures precision steel sprockets for applications…

A:

Q: Costs that change with the level of per unit of production are referred to as ________.     Fixed…

A: cost, in like manner use, the money related worth of labor and products that makers and consumers…

Q: 7. An unexpected outward shift of the economy's AD curve will cause real GDP growth to increase in:…

A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Q: Short-run average total cost      shows the minimum average total cost for each level of output…

A: Answer: Correct option: option 4 (might have a flat portion that indicates a constant average cost…

Q: When the average cost is greater than the marginal cost, the firm is producing in which

A: Average cost is the total cost of production divided by the quantity of output produced. It…

Q: Two tomato processing plants are located along a line 100 miles long. Plant 1 is at mile 30 and…

A: Given information 2 tomato processing plants located along a line 100 mile. Plant 1 is at mile 30…

Q: When marginal cost is greater than average total cost, the Select one: average total cost decreases…

A: Marginal cost (MC) refers to the additional cost of production realized with an increase in the…

Q: A bag factory produces 40 units of output. Its average variable cost (AVC) = $23, average total cost…

A: The bag factory produces 40 units of output.The average variable cost is $23. The average total cost…

Q: The minimum efficient scale of a firm Multiple Choice is realized somewhere in the range of…

A: We can calculate long run average total cost by dividing long run total cost by output. Long run…

Q: The gap that exists in a graph between total costs and fixed costs represents the variable costs of…

A: Total cost is the sum of variable and fixed costs. TC = TVC + TFC

Q: complete the solution for  Marginal profit of Y = dProfit /dY  = -X - 4Y + 120

A: Marginal profit is the derivative of total profit with research to the quantity.  Marginal profit is…

Q: True or false The unit share of fixed costs changes in a direct direction with the change in the…

A: Fixed cost: It is the cost that remains constant and does not get affected by the increase or…

Q: A company discovers that their total cost is $1700 at an output level of 9 units and $2000 at an…

A: Given: The total cost for a company at output level of 9 units is = $1,700 The total cost for a…

Q: Fixed cost is

A: Please check the solution below

Q: Given Q=100k0.5L0.5 , C=1200 w=30   r=40 (a)Determine the quantity of labour and capital the firm…

A: In case of production of two goods, a firm finds its equilibrium where the ratio of marginal product…

Q: Minimum efficient scale for production of a good or service: Select correct one : a) is the point…

A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…

Q: Economic cost can best be defined as

A: The economic cost is the mix of misfortunes of any merchandise that has a worth joined to them by…