Suppose a hotel exhibits constant returns to scale as it increases its output. If it increases  all its inputs by 10%, its: A. total cost will increase by less than 10% B. average total cost will increase by 10% C. output will increase by 10%. D. long run average cost curve will shift to the right by 10%.

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: Use the following table to answer the questions that follow. Total Output    Cost      TFC…

A: Total​ output Costs TFC TVC AFC AVC ATC MC 0 20 20 0 - - - - 10…

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: Distinguish between/ among a.  The short run total fixed cost, total variable cost and total cost…

A: Cost refers to the value of the resource(s) that gets exhausted in the process of production or…

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: When average total cost is at its minimum a.marginal cost is equal to average fixed cost. b.average…

A:

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: Draw the short-run average total cost (ATC), average variable cost (AVC), and marginal cost (MC)…

A: Average total Cost is the total cost per unit of output. Average Variable Cost is the variable cost…

Q: Average Cost falls when a. Marginal cost is greater than average cost b. Marginal cost is equal to…

A: Marginal cost and average cost are derived from the Total cost there is a relationship between the…

Q: K Click on the table icon that shows the fixed costs, variable costs, and total costs for different…

A:

Q: Solve the attachment.

A: Marginal cost is the addition to the total cost due to the production of an extra unit of output,…

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: Use the graph below to answer the following question. 10 8 Long Run Average Total Costs

A: The long run average total cost curve (LRATC) shows the per unit total cost incurred by the firm in…

Q: The short run average variable cost curve Explain answer a. Is always downward-sloping b. Starts at…

A: Production cost is the cost occurred on factors of production used in the process of production.…

Q: A firm analyzes the effects of raising its current level of output and finds that doing so will…

A: The firm average total cost increases if the firm increases its current level of output. The average…

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: 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…

Q: If a technology displays increasing returns to scale, then:   a. The ATC curve is increasing at an…

A: Returns to scale refer to how the output of a production process changes as all inputs are increased…

Q: When marginal cost (MC) is falling, which of the following must be true? OA. Average variable cost…

A: Marginal cost refers to change in the total cost that arises by increasing output produced by 1…

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: Diminishing returns occurs in the short run because: A.There are variable inputs to production in…

A: According to the law of diminishing marginal returns, the marginal product decreases as more and…

Q: If a firm triples inputs and produces twice the output, then there are constant returns to scale.…

A: Return to scale is a long-run concept that states the proportional change in output due to a…

Q: Refer to Exhibit 21-4. Curve D is a(n) a. average total b. marginal c. average fixed d. average…

A: Average variable cost is the variable cost divided by the quantity. AVC is U shaped curve. Average…

Q: When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is…

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

Q: As long as marginal cost is below average variable cost or average total cost , then average…

A: When MC is below AVC, MC pulls the common down. When MC is above AVC, MC is pushing the typical up;…

Q: 27. If a firm will produce an additional unit of good or services, determine what will happen to…

A: In the market, firm may change its production decision with the change in the market situation and…

Q: Macmillan Learning Slider owns a hamburger restaurant. Slider's minimum average variable cost is $10…

A: Total cost(TC) is the sum of variable cost(TVC) and the fixed cost(TFC). TC= TVC+TFCAverage total…

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: 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: When diseconomies of scale occur: CA. the long-run average total cost B. marginal cost intersects…

A: The average total cost (AC) is the per unit cost of production of the firm. The long run average…

Q: the main difference between the short run and the long run

A: Short run is a time period in which there are fixed costs and variable cost Fixed cost means the…

Q: Designated cost incurred by the short-run firm. Select one: a. fixed cost b. total cost c. variable…

A: In short run, certain factors of production are fixed and certain factors of production are…

Q: (TC is total cost; VC is variable cost; Q is quantity.) ATC а. b. The amount by which total cost…

A: A -Change in TC dur to change in output is called MARGINAL COST B- AMOUNT by which total cost…

Q: SECTION B: IDENTIFICATION OF COST CURVES From Figure 1 Identify the cost curves 41, 42, 43, and 44.…

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

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.