Define economics of scale and explain they might arise. Define diseconomies of scale and explain why they might arise.

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

A: Economies of Scale: Reduction of average and marginal costs in the long run due to an increase of a…

Q: Suppose you are a producer of motor vehicles, explain with the use of examples the difference…

A: Economies of scale exist when since a long time ago run normal total expense diminishes as yield…

Q: Explain two reasons due to which economies of scale may arise. Write your answer within 40 words.…

A: Economies of scale refer to the cost advantage of the firms when they increase production. Economies…

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: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: describe economies and diseconomies of scale while explaining possible reasons for both situations…

A: As the production size increases, a firm may experience economies or diseconomies of scale.

Q: charlie is running a coffe shop and are currently selling 200 coffees. it cost them 2,0000 to hire a…

A: Fixed cost is the part of total cost that does not depend on output produced. It remains fixed even…

Q: Explain economies and diseconomies of scale. Give an example of each.

A: Costs are the expenses that firms incur during the production processes. The firm’s costs depend…

Q: explain with graphs the difference between economies of scale, economies of scope and returns to…

A: Economies of Scale  An economy of scale is the expense advantage an organization has with the…

Q: Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to…

A: Definitions In the short run, increasing input after reaching maximum capacity while keeping at…

Q: . Over time Yasir decides to expand his business. In the long run he first experiences economies of…

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Q: Explain the Law of Returns to Scale with the help of an example.

A: Long run refers to a period of time in which all the input of the firm are totally variable, that…

Q: Answer the attached question

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Q: Define and explain the difference between economics of scale and economies of scope. Include an…

A: Definition: Economies of scale are cost-saving strategies in a production process by increasing the…

Q: Which long-run average total cost (LRTC) graph exhibits diseconomies of scale? LRATC LRATC

A: "Correct option is the first graph which is upward sloping."

Q: Note: Plot your points in the order in which you would like them connected. Line segments will…

A: Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short run…

Q: Explain the difference between economies of scale and economies of scope with an example.

A: Answer to the question is as follows:

Q: Explain the difference between economies of scale and economies of scope with an example.  Please…

A: Answer: Economies of scale: When a firm's average cost of production decreases due to an increase in…

Q: Explain the general shape of the long run cost curves in relation to economies and diseconomies of…

A: The shape of long run cost curve changes depending on the returns to scale.

Q: Use the concepts of economies and diseconomies of scale to explain the shape of a firm’s long-run…

A: Economies of scale refer to the cost advantages that are derived from the expansion of the scale of…

Q: Economics Long run average cost is increasing in economies of scale? 1) True 2) False

A: There are two type of scale in business or firm , economies and diseconomies of scale here we can…

Q: Suppose a firm produces cars and the minimum efficient scale is 2,000,000 cars. The inputs are labor…

A: LRAC refers to long run average cost and SRAC refers to short run average cost. Long run average…

Q: A firm has economies of scale, it must have increasing returns to scale. Explain?

A: Economies of scale are cost advantages experienced by firms when production becomes efficient.…

Q: If Farmer Jones plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he…

A: If Jones plants 1 bag of seeds, the she will get 3 bushels of wheat, if she plants 2 bags of wheat…

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

A: Firm produces final goods and services using the factors of production which are broadly divided…

Q: Describe the two main types of internal diseconomies of scale?

A: According to the given question In simple words we can say that the internal diseconomies of scale…

Q: "When the total cost of production decrease, we can say that the firm faces positive return to…

A: The firm would result in the production of the various goods and services which would involve the…

Q: Expalin the law of diminishing returns or diseconomies of scales ?

A: In an economy, the law of diminishing returns and diseconomies of scale are two different concepts,…

Q: hi  Suppose you build bird houses. One day, you double the time you spend building and double the…

A: Consider the definition of returns to scale. When we change all factors of production by a certain…

Q: Please give 2 examples of economies of scale, diseconomies of scale, and constant returns of scale.…

A: Return to scale is a long run concept, which measures the change in total output due to the change…

Q: Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns…

A: Diseconomies of scale occurs when a firm's Average cost increases with increase in the output.…

Q: Why do we have diseconomies of scale? In a diagram, show MES

A: The process of production makes use of various inputs and converts them into finished output. These…

Q: Distinguish between economies of scale and diseconomies of scale. Give examples of why a firm may…

A: The long-run average total cost curve declines because apparently, the firm becomes efficient in…

Q: A firm hires two workers and rents 15 acres of land for a season.It produces 150000 bushels of…

A: Here, it is given that, Initial production: 150000 bushels of crop Final production after doubling…

Q: Explain the three categories of rreturns to scale relating to the long-run average cost curve

A: Returns to scale shows how the proportion by which output change in response to the change in all…

Q: Explain the concept of economies of scale. Identify two reasons why economies of scale exist. 1-2…

A: Explain the concept of economies of scale.   Economies of scale :- It means mass production of…

Q: Explain two types of economics of scale that a person might gain by moving from a small food stall…

A: Economics of scale is gained when the production scale decreases long term AC. This means it is…

Q: Explain the concept of economies and diseconomies of scale and briefly state their effects on the…

A: Economies of scale and diseconomies of scale occur during the production of goods and services.…

Q: 10. Explain why economies of scale is important

A: Economies of scale: It refers to the reduced cost per unit of output of a commodity because of the…