What major company is likely facing diseconomies of scale today? Why?

Q: Economist of the Ville's Corporation has estimated the company's cost function using time series…

A: A monopoly is a market structure where a single seller (or a small group acting as one) has…

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: If a firm has economies of scale, it must have increasing returns to scale. True or false? PLEASE…

A: Economies of scale means reducing production cost by increasing output at a large scale.

Q: The yearly demand for a widget is 5000 units. The cost of ordering is $100 per order and the cost of…

A: Economic Order Quantity, also known as Economic Purchase Quantity, is the order quantity that…

Q: The long run average cost curve is U shaped because up to a certain point you have excess K/L and…

A: Total cost refers to the total amount of expenditure incurred by the firm ti produce the given…

Q: Please define the long cost curve and the short run cost curve in your own words but not more than…

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Q: Are all fixed costs also sunk costs?

A: Sunk Cost: It refers to the cost that is once incurred can’t be recovered.Fixed Cost: It is the cost…

Q: TC = 134 + 20Q + 4Q2 What is the average fixed cost when 11 units are produced? Enter as a value.…

A: TC=134+20Q+40Q2AFC=134+20Q+40Q2QNow,AFC11=134+20(11)+40(11)211         =5,19411         =472.18

Q: Suppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qd. Suppose at the market equilibrium,…

A: Given  At equilibrium, Price elasticity of demand Ed=109 Price elasticity of supply: PS=59 Formula…

Q: A manufacturer of a product sells all that is produced. The total revenue is given by TR=7q, and…

A: Total revenue function of the manufacturer: TR=7q         .......(1) Total cost function: TC=6q+1…

Q: You are given the following long-run cost function: TC = 150Q - 20Q2 + 1.8Q3 What level of Q will…

A: Economies of scale is where slope of long run average cost <0, while disceconomies of scale comes…

Q: Suppose a firm is producing 1,000 units of output. Its average fixed costs are $100. Its average…

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Q: Define the economies and diseconomies of scale and depict graphically how they relate to the long…

A: There are three types of returns to scale- Economies of scale The constant return to scale…

Q: You would expect that your firm is experiencing increasing returns to scale if Long run average…

A: Returns to scale refer to the relationship between the proportional increase in input factors (such…

Q: Quantity Total Fixed Cost 0. 60 60 60 115 4 60 130 6. 60 160 8. 60 200 10 60 250 Using the above…

A: Fixed costs (FC) are costs incurred during production that are not dependent on the quantity of the…

Q: What potential diseconomies of scale would be present if a firm is at profit maximizing point and…

A: Diseconomies of scale: It is an economic state which generally means that the as the business or…

Q: in the long run, firms generally experience diseconomies of scale, first because the large initial…

A: Economies of scale is a situation of cost advantage that a firm experiences as their long-run…

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: 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: If so, can you provide an example of what you mean by the operational environment?

A: The term operational enviornment is used to explain different situations in different fields as it…

Q: A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital…

A: Given: Sales revenue=$1 million Labor=$600,000 Capital=$150000 Materials=$200000 To find: Firm’s…

Q: TC = 144 + 27Q + 3Q2 What is the average fixed cost when 17 units are produced? Enter as a value.…

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Q: If a firm has economies of scale, it must have increasing returns to scale. True or false?

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…

Q: Distinguish between the short-run and long-run production decisions and illustrate their impact on…

A: Meaning of Production Function: The term production function refers to the situation under when a…

Q: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

Q: Solve correctly all the subparts Q)A firm has the following total revenue and total cost schedules:…

A: Profit is the difference between total revenue and total cost.

Q: What cost would an accounting statement reveal should current decisions be based on accounting cost.

A: Accounting statement should reveal the cost of production,cost of capital.

Q: “Sunk cost is a fixed cost, but not in the long term.” Is this statement true or false? Explain!

A: In an economy, the cost is classified in different forms according to its effect on organizational…

Q: A firm has the following total revenue and total cost schedules: TR = $3Q. TC = $4,000 + $1.7Q.…

A: Break-even is the point at which revenue and total costs are equal, indicating that the business is…

Q: 1. What is the cost of the engine block? 2. What is the direct labor cost? 3. What is the total cost…

A: A part of the wage bill or payroll that can be specifically and consistently assigned to or…

Q: Refer to the above diagram. Diseconomies of scale?

A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…