A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct? Multiple Choice   There are increasing returns to scale.   The long-run average total cost curve is flat.   The law of diminishing returns is proven wrong.   The example is for the short-run rather than the long-run.

Q: A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached…

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

Q: Which of the following statements is false?     a. The long-run average-total-cost curve does not…

A: Total cost

Q: Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in…

A: Average total cost (ATC) is the equivalent of total fixed cost (TFC) and total variable costs (TVC)…

Q: If a person starts their own business, one implicit cost is the loss of a steady salary from leaving…

A: This statement is True Implicit cost is the opportunity cost of the foregone alternative which is…

Q: Which of the following statements best represents a difference between short-run and long-run cost?…

A: In the production function, different inputs are used to produce the final output. Each input has…

Q: The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC s the…

A: Since you have asked for the solution of B and C only. So, I am answering only B and C.

Q: Suppose a firm has chosen its quantity so that its marginal cost isequal to the market price, and is…

A: Known fact:Economies of scale: The economies of scale is a situation in which output can be doubled…

Q: In a furniture market, if a furniture company is analyzing the short run total costs, one of the…

A: Here, it is given that a firm in the furniture market is analyzing its short-run total cost.…

Q: Refer to the graph shown above. Based on the information illustrated in the graph, which of the…

A: Answer - Need to find- Correct option - Given in the question-

Q: Order the following components of a long run average cost curve as output expands based on which…

A: In the long-run, an average cost curve shows different phases of production when average cost…

Q: A firm pays $500,000 per year on costs that it cannot alter in the short run. This year, it expects…

A: Cost Cost refers to any expense that incur in the process of production. Total cost is made up of…

Q: If a firm is experiencing economies of scale, doubling inputs will: double output. more than double…

A: Economies of Scale: The economies of the scale refer to the gain that arises due to the increase in…

Q: Over the positively sloped portion of the short-run average cost curve, the effect of productivity…

A: In the short-run , the average cost curve is the sum of total variable cost and total fixed cost.…

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: For the following industries, state whether the long-run average cost curve has an extended range…

A: Returns to scale is the quantitative change in outputs of an industry or firm in response to an…

Q: The short-run cost function of a company is given by the equation TC=200+55q, where TC is the total…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How does learning by doing affect average total costs? Short-run average total costs will remain…

A: Learning by doing is a process of achieving productivity through practice, innovations, and…

Q: In the given figure, short-run cost curves are depicted. What role does the graph's Curve Y…

A: "Cost curves in economics represents a graph of the costs involved in the production process as a…

Q: Which of the following results from bureaucratic red tape, breakdown of top-to-bottom communication,…

A: The Diseconomies of scale are the consequence that occurs because of bureaucratic red tape,…

Q: The feature that distinguishes short-run from the long-run is the *       length of time it takes to…

A: Short run and long run are period of times in production of goods which differ according to the…

Q: Compute the long-run costs in the following table. The price per unit of capital is $50 and per unit…

A: Given: Price per unit of capital=$50 Price per unit of labor=$30 The durable goods that are being…

Q: In the short run, which of the following costs will not change as output changes? marginal cost.…

A: The short run is a period of time in which at least one factor of production (input) is fixed, while…

Q: If a firm triples its output in the long run and costs per unit increase, we can conclude that:…

A: Average Cost (AC): - it is the average value of total cost incurred on a specific unite of output.

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: The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC is the…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Fixed costs are associated with Multiple Choice   highly adjustable inputs such as labor.   both…

A: Fixed costs are costs that does not change with increase or decrease in production/sales. They are…

Q: Question 2 In the short run, a firm that produces and sells widgets is able to... Group of…

A: "In the production process with two inputs capital and labor, short run is defined as a period in…

Q: Suppose a firm's long-run average cost is increasing as the firm produces more output. Then the firm…

A: Long-run average total cost is a business metric that represents the average cost per unit of output…

Q: The feature that distinguishes short-run from the long-run is the*

A:

Q: Diminishing returns* characterize all stages of production. eventually occur in all short-run…

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

Q: The four statements below describe properties of a firm's short run cost curves. Complete the…

A: Average cost is the per unit cost of production. Marginal cost is the additional cost incurred to…

Q: The short run is the time frame A) during which the quantities of all resources are fixed. B) during…

A: Production takes place in the short run while all planning is done in the long run.

Q: In the short run, behavior of production is explained by Select one: a. The law of diminishing…

A: There are two kinds of periods faced by a business company based on the variability of its…

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Here, total output given is 1,000 units. Average total cost is $100. Average total cost is defined…

Q: The shape of a firm’s long-run average cost curve depends on how costs vary with the scale of…

A: There are 2 types of cost will occur by any enterprises, 1. Fixed Cost. 2. Variable cost. Fixed will…

Q: A student has just written on an exam that, in the long run, fixed cost will make the average total…

A: Long run: Long run refers to the time period that necessary to increase the production capacity or…

Q: Which of the following statements is CORRECT?   Question 17 options:   Short-run decisions are not…

A: There are various factors that affect the production. Some factors are variable and some are fixed.

Q: Why do we refer to the long-run average cost curve as a "boundary"? a. The points below the curve…

A: * ANSWER :-  *(46) * The OPTION E (The points on the curve represent a boundary between fixed factor…

Q: A firm with some fixed costs and a constant marginal cost at all levels of production will have…

A: The total cost can be divided into two parts: total fixed cost and total variable cost. Total fixed…

Q: True or False: For an increase in output, average costs change by more in the short-run than in the…

A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…

Q: A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of…

A: Returns to scale state the effect on the output level due to the increase in the production inputs.

Q: The main difference between the short run and the long run is that  firms earn zero profits in the…

A: There are two types of factor of production which are fixed and variable factor of production. The…

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.