Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 9.8, Problem 4QQ
To determine
Relevance of long run of average total cost curve.
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Chapter 9 Solutions
Microeconomics
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Indicate how each of the following would shift the...Ch. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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- costs in the short-run versus in the long runarrow_forwardLike Loyola, many universities have either a college football program or a basketball program. Relatively few have both. This indicates the presence of A. economies of scope. B. diseconomies of scope. C. returns to scale. D. the law of diminishing marginal returns. E. None of the above.arrow_forwardiv. Over time Yasir decides to expand his business. In the long run he first experiences economies of scale, followed by constant returns to scale and finally diseconomies of scale as the output increases. Draw a diagram of his ATC in the short run and the long run. Explain this diagram in detail.arrow_forward
- a. A producer borrows money and starts a business. He himself looks after the business. Identify implicit and explicit costs from this information. Explain. b. List and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines. The cost of fuel used in its planes. The rent on its Piarco headquarters. The lease payments on its current inventory of jets. The cost of peanuts it serves to passengers. The salary paid to the Chief Executive Officer. i. ii. iii. iv. V. c. How is the difference between average total cost and average variable cost impacted by an increase in output?arrow_forwardWhat do we assume to be the goal a typical firm in the production model pursues? A. Maximized profits B. Maximized social welfare C. Highest wage to be paid D. Social justicearrow_forwardIf a firm wanted to know how much it would save by producing one less unit of output, it would look to: MC.B. ATC.C. AVC.D. AFC.arrow_forward
- In the short run, behavior of production is explained by Select one: a. The law of diminishing marginal returns b. The law of returns to scale c. Economies and diseconomies of scale d. The law of demand and supplyarrow_forwardDraw the MC and the ATC curves and show graphically: (a) The long-run optimal production and price level. (b) The economic profits when p >Min(AT C). (c) The economic profits when p <Min(AT C). (d) The economic profits when p= Min(AT C).arrow_forwardWhich of the following is wrong? Select one: a. Economies of scale refer to the production of two or more goods and occur when joint production is less costly than the sum of the costs of producing each good separately. b. When the firm experiences economies of scale, its long-run average cost curve is downward sloping. c. The expansion path describes the cost-minimizing combination of inputs that the firm chooses for every output level. d. When costs increase proportionately with output, the firm’s long-run average cost curve is horizontal.arrow_forward
- Short-Run Outcomesarrow_forwardI need help with econ multiple hw questions asap! 40) What happens when a business is operating a factory in the short run? A. The business cannot alter variable costs. B. Average fixed cost rises as output increases. C. Total cost and variable cost are usually the same. D. The business cannot adjust the quantity of fixed inputs. 39) What is tax revenue? A. the amount of the tax times the amount of the good sold B. the amount of the tax minus the amount of the good sold C. the amount of the tax divided by the amount of the good sold D. the amount of the tax plus the amount of the good soldarrow_forwardWhat are diseconomies of scale? Diseconomies of scale is A. when the marginal product of labor is decreasing with output. B. when the marginal cost of production is increasingwith output. C. when a firm's long-run average costs decrease with output. D. when a firm's long-run average costs increase with output.arrow_forward
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