Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to illustrate their relationship.

Q: How and why does a firm’s average-total cost curve differ in the short run compared with the long…

A: In the long run, a firm adjusts the different factors of production that are fixed in comparison in…

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: Complete the table directly below by calculating marginal product and average product. Plot the…

A: Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: When the marginal product curve is downward sloping, the average product curve? 1. might be either…

A: Average product curve indicates the per unit output at each level of input variable. MP indicates…

Q: What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies…

A: Answer - Need to find- What does the long run Average cost curve imply when it is horizontal…

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: Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to…

A: The total production process of a firm/company is an amalgamation of various costs, the optimum…

Q: How are increasing returns to scale for a long-run production function and a downward sloping…

A: The increasing returns to scale means that the output is rising in a larger fraction than the rise…

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: Suppose an automobile manufacturer is choosing between two production options. It can produce 100…

A:

Q: "Whenever a number which is less than the previous average of a total is added to that total, the…

A: In a market, it can be seen that the different cost curves are directly or indirectly related to…

Q: Why do Economies of Scale Occur? A. Large firms cover their fixed costs by producing lots of units…

A: Fixed cost is constant and remains same at all levels of output. Average cost refers to total cost…

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: 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: 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: The following table gives total output or total product as a func- tion of labor units used. LABOR…

A: Given Labor Total Output Marginal Output 0 0 0 1 5 5 2 9 4 3 12 3 4 14 2 5 15 1

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: 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: ing to the long-run average cost cur

A: The cost of per unit output is known as the average cost. It directly depends on returns which…

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: 800 Is 720 640 SRATC, 560 480 SRATC, 400 320 SRATC, 240 160 LRATC 80 100 200 300 400 500 600 700…

A:

Q: 1. Economies of scale Web Slinger is an Internet service provider. In the long run, Web Slinger can…

A: Answer: To derive the long-run average cost curve, we need average cost. The average cost schedule…

Q: What factors give rise to increasing returns to scale and decreasing returns to scale?

A: Increasing returns to scale means when all inputs are increased, the output is increased by more…

Q: Consider the following table of long-run average total costs for a firm. Does the firm experiences…

A: please find below  the answer.

Q: Economics students often confuse (a) diminishing returns related to the variable factors of…

A: The return to scale and economies of scale are two different concepts.  The law of diminishing…

Q: briefly explain returns to scale.  Explain the variable costs in the cost function

A: returns to scale allude to the rate by which result/output changes on the off chance that all…

Q: . If a firm has economies of scale, it must have increasing returns to scale. True or false? EXPLAIN…

A: Economies of scale provides cost advantage to the firm.Firm is able to lower average cost through…

Q: Define economies of scale

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

Q: Show the relationship between production function and cost function

A: Production function refers to the quantities of a physical product to the quantity of factors of…

Q: As the marginal physical product of a variable input increases, the marginal cost decreases. a.…

A: The cost of one additional unit of output is known as marginal cost. The concept is used to…

Q: Consider the following production function: q = 2V1 + 3VK Assume K = 16, derive the marginal product…

A: a. Given information: Production function is; q = 2L + 3K Value of K =16 Marginal product of labor…

Q: Find the attached file.

A: Fixed cost is the cost which does not vary with the change in the output. Marginal cost is the…

Q: Explain the following statement by using a graphical analysis: “The long-run average cost curve is…

A: Average cost is the cost of producing one unit of goods and services . It is calculated by dividing…

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: 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: What is the difference between decreasing returns to scale and diminishing marginal product?

A: Meaning of Law of Variable Proportions: The term law of variable proportions refers to the…

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: Answer the question on the basis of the following cost data. Output Total Cost $ 24 33 1 2 41 3 48 4…

A: We can calculate the Average total Cost by using following formula Average total cost = Total…

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: Let's assume that in Ventura, a toaster company was manufacturing 3,000 units of toasters at the…

A: Introduction Economies of scale means that as a producer increases the quantity produced/output, the…

Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…

A: The Long-run average cost curve is defined as a curve which portrays a firms lowest cost per unit at…

Q: Consider the statement: “Total output starts falling when diminishing returns occur”. Do you agree…

A: "Total output starts falling when diminishing returns occur." It is a disagreeable statement as…

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…