long-run cost relationships In the long run, if the firm decides to keep output at its initial level, what will it likely do?Shift to operate on ATC2O sift to operate on ATC3Shut downO stay on ATC1 but decrease to the point touching LRATCTrue or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve.FalseTrue The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five markedquantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average total cost curve (LRATC);for example, Q1 marks the point of tangency between ATC1 and LRATC.The orange point on ATC, indicates the firm's current output level in the short run (Q2).ATC,ATCLRATOATC,ATC,ATC.OUTPUTCOST PER UNIT

The above given cases are analyzed as follows:

Tong ruh, keep outpu Iikely do Shift to operate on ATC2 Shift to operate on ATC3 Shut down Stay on ATC, but decrease to the point touching LRATC True or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve. False True

Tong ruh, keep outpu Iikely do Shift to operate on ATC2 Shift to operate on ATC3 Shut down Stay on ATC, but decrease to the point touching LRATC True or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve. False True

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The economies-of-scale curve is a long-run average cost curve, because it allows all factors of production to change. fixed costs cannot be changed. only variable costs are allowed to change. only marginal costs are allowed to change
Give business examples of short-run costs, economies of scale, and minimum efficient scale (MES).
Compare and contrast: a) Average fixed cost vs. Total fixed costb) Total variable cost vs. Average variable cost.
Which average cost curves are U-shaped?
A producer borrows money and start a business . He himself looks after the business. Identify the explicit and implicit costs from this information. Please write the answer in brief.
Average total cost decreases when marginal cost is average total cost. less than greater than equal to
Use economies of scale to link a firm’s size and its average costs in the long run.
TC = 4,500 + 5Q2 MC = 10Q What is the average total cost equation? a. b. C. d. ATC = 4500Q + 5 ATC = 4500 + 10Q ATC= 4500/Q+5 ATC = 4500/Q +5Q
Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost $ 25.00 Total Product $150.00 $175.00 98.00 70.00 $25.00 75.00 23.00 21.00 3 50.00 20.00 14.00 37.50 21.00 58.50 24.00 30.00 23.00 53.00 31.00 6 25.00 25.00 50.00 35.00 21.43 28.00 49.43 46.01 51.76 55.67 63.00 18.75 33.00 68.07 16.67 39.00 86.95 10 15.00 48.00 128.97 The accompanying table gives cost data for a firm that is selling in a purely competitive market. We can infer that, at zero output, this firm's total fixed, total variable, and total costs are O $150, $25, and $175, respectively. O zero, $25, and $175, respectively. O $150, zero, and $150, respectively. O zero, zero, and zero, respectively.
Typed and correct answer please. I will rate accordingly. Don't do wrong please. It's my last attempt.
The ratio of total cost to number of units produced defines: a. Incremental cost b. Average cost c. Marginal cost d. Opportunity cost.
Why is the Average Variable cost U-shaped?