Define economies of scale and explain why they mightarise

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: his refers to the ratio of a small increment of cost and a small increment of output. a. Increment…

A: Below is the formula for marginal cost:

Q: As output increases, total fixed cost A. increases; decreases B. does not change; decreases C.…

A: total cost is the cost which is incurred by producer for production by using all fixe and variable…

Q: Tolal Fbed Total Varlable Cost Tatal Total Cost Cost Variable Cost Flved Cost Product Cast 60 00 45…

A: FIXED cost is independent of output produced thus the required fixed cost is $ 60 whereas variable…

Q: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…

A: Marginal Cost(MC) is the increment in the total cost(TC) due to a unit increment in the amount of…

Q: 1. Show and explain the relationship between total cost, marginal cost and average variable cost

A:

Q: Consider the following cost information for Yasir’s tea stall. (Cups of tea per hour) Total…

A: Variable cost represents all the expenses that depends on the level of output, i.e changes with the…

Q: Can you differentiate which is the best and which is the worst between Constant Cost Condition,…

A: In a perfectly competitive market, the long-run industry supply curve explains the relationship…

Q: Economies to scale refer to

A: Companies benefit from economies of scale as manufacturing gets more efficient.Economies of scale…

Q: Consider the following cost information for Yasir’s tea stall.   (Cups of tea per hour) Total…

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

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: Derive the long run average total cost curve and show minimum efficient scale on it.

A: The money spent to purchase the factor of production to produce the final goods and services is…

Q: Define the economies and diseconomies of scale and depict graphically how they relate to the long…

A: There are three types of returns to scale- Economies of scale The constant return to scale…

Q: Does a relationship exist between increasing returns to scale and long-run average cost? Ex with the…

A: Economies of scale or increasing returns to scale are utilized conversely; both implies to a fall in…

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: bath the marginal cost and the average variable cost curves are U-shaped, at the minimum point of…

A: Average total cost is the sum of average Fixed cost and average variable cost. It is referred as…

Q: Your cousin Vinnie owns a painting company withfixed costs of $200 and the following schedule…

A: Cost is the expenditure incurred by firms on the production of goods and services. Production costs…

Q: Describe marginal cost in your own words.

A: Cost accounting is a method of financial management that examines a business's variable and fixed…

Q: Economies of Scale

A: All the firms total cost meeps on increasing.

Q: Which expression is another way of saying "marginal cost"?                Scarce resources…

A: Marginal cost is the increment in total cost for producing additional units of a commodity. It is…

Q: Three college students are considering operating a tutoring business in economics. This business…

A: Fixed costs are the costs paid for resources whose quantities cannot be changed in a fixed period.…

Q: Show me how to arrive at Average Variable Cost?

A: Total variable cost varies with the level of production.

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: Write a short note on Increasing economies of scale – meaning and effect on costs

A: The production function depicts the technical association between the quantities of output (Q) that…

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: 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: 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: efficient scale is houses.

A: Efficient scale is the scale at which firm can produce its output at minimum average cost.…

Q: What is the difference between economies of scale andeconomies of scope? How do firms consider these…

A: The concepts of economies of scope and economies of scale explains the situations when the big firms…

Q: Government imposes higher tax on tobacco production. Which cost curves will be affected and why of…

A: When the government imposes a higher tax on tobacco production or the output. With this tax…

Q: Icreasest vny 10.) Fill in the blanks in the following table: SP a& Total fixed Total varjable…

A: In a market, different types of costs are related to each other as the total cost is the one that…

Q: If the average variable cost of producing 5 costumes in Kira’s Costume Shop is $50, and the fixed…

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

Q: Jacob, a chef who lives in the community, is really excited to start his own cookbook. He found a…

A: STEP 1: The break point is the point where a firm neither earns profit nor incur loss. At this point…

Q: Define economies of scale

A: Economy of scale is a microeconomic term used as an important element of productivity growth.…

Q: Calculate variable cost, average fixed cost, average variable cost, average total cost, and marginal…

A: TVC = TC - TFC AFC = TFC / Q AVC = TVC / Q ATC = TC / Q MC = Change in TC / Change in Q Q TC TFC…

Q: ased on your own personal observations of the college, do you think the low-income Community College…

A: Economies of scale refer to a situation where the already existing firm/ organization/ institution…

Q: What is theoretical relationship between Marginal Cost and Average cost

A: Costs refer to the amount of money that the firms need to give up in order to perform certain…

Q: Explicit cost = $100 Implicit cost = $163 Total cost = ?

A: Generally in the question, Explicit cost value is = $100 Implicit cost value = $163 We need to find…

Q: The behavior of long run average cost determines what is known economies of scale, constant return…

A: The long-run average cost shows the cost of producing per unit of output in the long-run. The…