Consider an industry in which the production technology yields the cost function C(Q)=1800+(3Q)². Which of the following statements is correct? O If Q<10,/2, the cost function is sub-additive. If Q<20, the cost function is sub-additive. O If Q<20/2, the cost function is sub-additive. O The cost function is sub-additive for all Q>0. O None of the above.

Q: Which of the following statements is TRUE? O The average variable cost curve must always be…

A: The addition of fixed and Variable Cost gives us total costs, which when divided by the output give…

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: It is demonstrated that sometimes extensive diseconomies of scale, say, due to high transportation…

A: GIVEN   It is demonstrated that sometimes extensive diseconomies of scale, say, due to high…

Q: Suppose for a particular firm the only variable input into the production process is labor, and that…

A: Total cost is the cost of all inputs needed to produce with the given output. ATC is given as $30…

Q: Which of the following is true?

A: The long-run average cost curve represents the least average cost to produce any given level of…

Q: Cost, Revenue & Profit For these problems, xx will represent the number of items and yy will…

A: Slope intercept form: Y=AX + B

Q: A firm is characterized by the following total cost function: TC = 16 + 4Q + 2Q2 Which of the…

A: We are going to solve for minimum possible average cost to answer about economies of scale.

Q: A firm has an average cost function A(q) =125/ q +q2 /16− 4. where q is the firm′s output. (i)…

A: Total cost(TC) is the sum of the variables and the fixed cost incurred by the firm. It is the…

Q: Which of the following statements is false? O The total fixed cost curve has the same slope as the…

A: When a firm makes production activities in the market, it faces two types of costs that are fixed…

Q: Output Total Cost 0 24 1 33 2 41 3 48 4 54 5 61 6 69 Refer to the above data. The…

A: Fixed cost is the cost that does not vary with the output produced.

Q: Which of the following statements is true? a. If the marginal cost curve is above the AFC curve, the…

A: The AFC curve continues to fall with rise in output. The AFC curve is in decreasing shape. Average…

Q: Labor Output 0 1 2 3 4 $1 $1.13 O $9 0 10 18 24 28 $27 Variable Cost 5 15 20 Consider the table…

A: The average total cost is computed by taking two numbers, the total cost of production and the…

Q: The long run is best defined as a time period O during which at least one input cannot be changed. O…

A: Some factors of production vary with the output produced in the short run, while some remains…

Q: Adam operates a factory that produces beach towels. His current level of output equals 2000 towels…

A: Fixed costs incorporate quite a few costs, including rental rent installments, compensations,…

Q: competitive firm has a single factory with the cost function C(q) = 5q² + 79 and produces 32 units…

A: The marginal cost of creation is the adjustment of complete creation cost that comes from making or…

Q: I’m trying to practice how to derive Lorn run and short run cost functions could I have explanations…

A: Production function : Q=L1/2K1/2 Marginal Product of Labor=MPL=dQ/dL=1/2L-1/2K1/2 Marginal Product…

Q: 1. The firm's fixed costs are $2,000, and the firm's total costs of producing 100 units is $4,000.…

A: Total cost is the sum total of fixed cost and variable cost.

Q: For producing 200 chairs, the total fixed cost is R.O 2,000 and total variable cost is R.O 1,500.…

A: Firms incur various types of costs while conducting business operations or undertaking any…

Q: Which of the following relationship is correct? O When marginal product (MP)starts to decrease,…

A: MP is the additional change in total output due to produce of one additional unit of output  MC is…

Q: 125 q? 4. 16 A(q) where q is the firm's output. (i) Determine the level of output for average costs…

A: Average Cost A(q) = 125q+q216-4    .............(1)    We know that the average cost is equal to the…

Q: 1. Suppose a cost function such as C(q) = 10 + 159 + 4q (a) Find the ATC, AVC, AFC and MC (b) Find…

A: The cost of production indicates the money spent on the fixed and variable factor of production. The…

Q: 21

A: Short run production function means where only one factor is variable in nature and other factor…

Q: Ouroboros’ total cost (TC) as a function of its production level q is given by the equation below:…

A: Given  Total cost TC(q)=2q2-12000q+30,000,000              ...... (1) “Since you have posted a…

Q: Which of the following statements is NOT correct? O The long-run total cost curve is the lower…

A: Marginal rate of technical substitution is the rate at which input factor labour and capital is…

Q: Consider the following information about the input choices and prices, produci the same output in…

A: Cost minimization refers to optimal usage of factors of production such that for production of a…

Q: Which of the following best describes economies of scale? O They refer to the increase in output…

A: In the short run atleast one input is fixed and in the long run all inputs are variable.

Q: The Mini-Case "Economies of Scale at Google" describes economies of scale for Google Cloud Storage.…

A: The objective of the following assessment is to evaluate the marginal cost and average cost for the…

Q: What is average fixed cost? O the price of a fixed factor of production the total cost divided by…

A: please find the answer below.

Q: Suppose a particular firm exhibits constant returns to scale as it increases its output over any…

A: Returns to scale refers to proportional change in total cost in response to proportional change in…

Q: Consider a firm with fixed costs of production (F). Which FOUR of the following statements are…

A: To select the correct options, let's try to understand the relationship between the two curves with…

Q: Which one of the following types of short-run costs declines over the whole range of output? a.…

A: There are different types of cost associated with economic activities specially production…

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: The production function for the automotive and parts industry is q=L025 K0.16M0.59 where M is energy…

A: The rate by which there is a change in the level of output if all of the inputs are being changed by…

Q: Question 3. Refer to the information provided in the following figure, If this firm's cost of…

A: Isocost line represents the different combinations of factors of production a firm can afford to…

Q: What is the critical point of the total cost function TC =-Q³ - 6Q2 -640Q ? %3D O A.Q = 10 О В. Q —…

A: The total cost function is given as follows: TC = 13Q3 - 6Q2 - 640Q Where, TC is total cost. Q is…

Q: A firm has a fixed production cost of $4000. For the first 100 units of production, the firm has a…

A: Given Information: Fixed cost = $4000 For the first 100 units, the marginal cost = $50 per unit…

Q: A local bakery has the following production function of cakes, Q = K³l*L+/2, The firm currently has…

A: In the short-run(SR), some factors are fixed while some are variable. That’s why the SR cost…

Q: Is each of the following statements true or false? In either case, briefly justify your answer. (a)…

A: Answer a. Economies of scale describe a condition in which the average cost reduces as the volume of…

Q: Q. 5 a) Suppose that the total cost function of a firm is given as TC = 20 +Q² Determine the output…

A: Given  Total cost function:  TC= 20+Q2.       ....(1)

Q: You are given the following cost functions: TC=100+60Q−3Q2+0.1Q3TC=100+60Q−3Q2+0.1Q3…

A: Total cost (TC): It is the sum total of the cost that is being borne by the producer in the process…

Q: Consider a linear, increasing function for total costs. If there are fixed costs, which one of the…

A: Answer: A (Marginal cost is always falling) Explanation: The marginal cost will be constant in the…

Q: The following production function and cost constraints are given find the values of L, K and 2 by…

A: The production function is the maximum output that can be produced with the given technology and the…

Q: Assume the short run variable cost function for Japanese beer is VC=0.6q^0.8 If the fixed cost (F)…

A: Variable cost:  VC = 0.6q0.8 Fixed cost:  F = 1500 -------

Q: Marginal cost, average total cost and average variable cost Marginal cost and average total cost are…

A: a) No, Marginal cost, average total cost and average variable cost are not always equal. There exist…

Q: Given the total cost function TC = 100 + 40Q - 15Q2 + 5Q3, what is Average Total Cost (ATC)? A. ATC…

A: Average cost or unit cost is equal to total cost divided by the number of units of a good produced…

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: The isoquant would result in the downward sloping curve which would result in various combinations…

Q: Marc Nerlove conducted a classic study on economies of scale in the electric utility industry. I…

A: Economies of scale occur when the average total cost (ATC) decreases as output (Q) increases…