(a) Define economies of scale and explain why they might arise. Define diseconomies of scale and explain why they might arise. Also draw the long run average total cost curve to explain the economies and diseconomies of scale. (b) Show the relationship between Marginal cost and Average total cost curve for a typical firm.

Q: QUESTION 22 Refer to the table below: Quantity of Output Fixed Variable Total Cost Cost Cost 1 $23…

A: Answer to the question is as follows :

Q: The average fixed cost curve will never Intersect with either the horizontal vertical axis

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: In a short-run production process, a diminishing marginal product of labor explains why marginal…

A: Marginal Product of Labor:  The term marginal product of labor shows that how much additonal or…

Q: What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b. Returns to…

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

Q: Average total cost, average variable cost marginal cost and marginal product b. The relationship…

A: Average Total Cost or Average Cost is the total cost (TC) divided by the number of units produced…

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

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

Q: Discuss some of the difficulties encountered in applying these economic concepts in practical…

A: The fixed cost is the cost which remains the same even when the firm produces nothing as output.…

Q: *33) Economies of scale exist when the A) total cost of production falls as the output increases. B)…

A: Economies of scale alludes to the peculiarity where the normal expenses per unit of result decline…

Q: Illustrate and explain the following concepts: Least cost factor combination using isoquant curve…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Hello, I have finished reading chapter6: product costs and have some trouble understanding the short…

A: Average variable cost(AVC), average total cost (ATC), and marginal cost(MC) all these curves are…

Q: ATC B. Output 15. In the above long-run average total cost curve the: A) movement from A to B…

A: Long run average cost curve represents least average cost to produce any given level of output. In…

Q: If Boeing produces 9 jets per month, its long-run total cost is $9.0 million per month. If it…

A: Economics of scale: It refers to the situation when increasing production leads to falling per unit…

Q: What is difference between fixed and variable cost in short run? How does this result in the classic…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: Given the Total Product indicated in Table 2, complete MFMI’s cost schedule including variable…

A: The variable cost can be calculated by using the following formula as follows: Variable cost=Total…

Q: Illustrate and explain the following concept: Least cost factor combination using isoquant curve…

A: A firm produces a particular quantity of a good or service at each of the alternative factor…

Q: You overheard Mr. John, the newly-hired marketing manager, saying: “I think our company should take…

A: Economies of scale refers to the concept used by the organization in which the organization increase…

Q: Question 4. (a) Explain how the long-run average cost curves will differ between a private hospital…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Evaluate the view that the main goal of firms will always be cost minimization.  You are interested…

A: 1) The main goal of the firm is cost minimization. This is because if the firm minimises the cost,…

Q: If marginal cost is equal to average total cost then, (a) Average total costs are falling (b)…

A: Marginal cost depicts additional cost incurred in order to produce an additional unit of output.

Q: You are interested in starting a used car dealership in your country. Provide examples with…

A: Answer 1 :

Q: Answer the question of the production cost as follows: 1.1  Based on Table below, calculate average…

A: You have posted multiple question, as per guidelines we will solve one question at a time.  Given…

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

A: The total cost is the total expenditure on goods and services. Total cost includes both the variable…

Q: Long-run average c Number of units produced Figure 8.9 Which segment in the diagram represents the…

A:

Q: (c) The cost function of a firm is given below: पतंजलि 4 Output Total Cost () 1 60 80 100 111 116…

A:

Q: Give business examples of short-run costs, economies of scale, and minimum efficient scale (MES).

A: At the Mininum effiecient scale point, the company could achieve the economies of scale being…

Q: 1. Economies of scale Vision Source is a cable television provider. In the long run, Vision Source…

A: Average total cost (ATC) = Total cost (TC) / Output (Q) When Q = 20,000, ATC = 700,000 / 20,000 = 35…

Q: If average total costs increase when the output level increases, then there are diseconomies of…

A: The expenses that are being incurred for running a business and carrying out its various…

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: Evaluate the view that the main goal of firms will always be cost minimization.

A: The cost of the firm when producing output would be the cost incurred by the firms on the factors of…

Q: Question 3 Discuss the relationship between Long-Run Average Cost and Short-Run Average Cost for a…

A: The short run average cost would result in the change in the cost with the change in output in the…

Q: Q.2. (a) Define economies of scale and explain why they might arise. Define diseconomies of scale…

A: "Total costs (TC) are the sum of fixed and variable costs." "The total cost divided by the quantity…

Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…

A: Define economies of scale and explain why they might arise. When the long-run average total…

Q: 2. As an employee of the Rays-R-Us Corporation (a solar panel company), you have been asked to…

A: a.Total cost and long run average cost for quantity 1:Total cost and long run average cost for…

Q: 3. XYZ corporation produces widgets. Its short-run marginal cost curve is given by MC (q) = 10 – 5q…

A: Given information MC=10-5q+q^2 Marginal cost is the additional cost incurred by producing additional…

Q: Quantity of Output Fixed Cost Variable Total Cost Cost $23 $33 2 S38 $60 4 $54 5 S80 S88 $113 $155…

A: A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or…

Q: antity (Q) Fixed Cost Variable Cost Total Cost Marginal Cost Average Fixed Cost Average…

A: Fixed cost is independent of output produced thus FC=$100

Q: Al Mardoof Company paid different types of costs for different output levels as shown in the given…

A: From the graph, we can see that the variable cost is depicted by the Green line. The cost is on the…

Q: The unlabeled red curves in this figure derive their shapes from:   a. decreasing, then increasing,…

A: The long run average cost is an envelope around all the short run average cost curves. So, the long…

Q: The shape of the long-run average cost curve is primarily due to: O economies and diseconomies of…

A: Long run average total cost is the per unit cost of production in the long run. It is the ratio of…

Q: MC ATC AVC F AFC A Quantity Refer to the above diagram. At output level Q total variable cost is:…

A: Diagrammatically, total variable cost(TVC) at a certain level of output is given by the area below…

Q: Explain the difference between economies and diseconomies of scale. Provide examples of when an…

A: Economies of scale occurs when the long run total average cost would reduce as the number of units…

Q: 5. Economies of scale occur when a. the long run total cost is decreasing b. the long run total…

A: Answer to the question is as follows :

Q: Economies of scale occur when the long run total cost is decreasing the long run total cost is…

A: In a market, organizations may face all the three faces of cost, such as increasing, decreasing or…