i need the answer quickly Diseconomies of scale are: [11.4.4 Diseconomies of Scale: An Upward-Sloping LRATC Curve]Ainstances in which increasing output does not change average total costs.instances in which decreasing output increases average total costs.instances in which increasing output increases average total costs.instances in which increasing output does not change total costs.

There are two type of scale in economies - 1) economies of scale 2) diseconomies of scale In short…

Answered: Diseconomies of scale are: [11.4.4…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 7TY

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What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
MCQ: What do you understand by “diseconomies of scale”? Decrease in costs as we increase the number of workers but keep other factors fixed Increase in costs as we increase all factors of production by same proportion Decrease in output as we increase the number of workers but keep other factors fixed Decrease in costs as we increase all factors of production by same proportion Increase in costs as we increase the number of workers but keep other factors fixed
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) NOTE: PLOT POINTS PROPERLY AND write the x and y coordinates to each point after NOTE: Options to blank question is Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using ______ (One factory OR two factory OR three factory)
Please give 2 examples of economies of scale, diseconomies of scale, and constant returns of scale. Provide explanations...
Let's assume that in Ventura, a toaster company was manufacturing 3,000 units of toasters at the total cost of $141,000. Currently, it is manufacturing 5,000 units and the total cost is $200,000. This toaster company is experiencing Group of answer choices economies of scale none of the other answers diseconomies of scale constant returns to scale
Using the table below indicate which firm has (i) diseconomies of scale and (ii)constant returns to scale over the entire range of output. Explain your answer Quantity(Units of output )1 2 3 4 5 6 7Firm A 210 340 490 660 850 1060 1290Firm B 180 350 510 660 800 930 1050Firm C 120 250 390 540 700 870 1050Firm D 150 300 450 600 750 900 1050
The phrase “returns to scale” is a way of describing the change in output that is produced as a result of a relative change in inputs used. Which of the following statements is true? If inputs are doubled and output doubles, this is called increasing returns to scale. If inputs are doubled and output doubles, this is called constant returns to scale. If inputs are tripled and output doubles, this is called increasing returns to scale. If inputs are doubled and output doubles, this is called decreasing returns to scale. If inputs are tripled and output doubles, this is called constant returns to scale
Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote. How to explain the relationship between returns to scale and the slope of LMC in mathematics or intuition?
Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were
Define the term “returns to scale”, how it is measured, and explain the three different states of constant returns to scale, increasing returns to scale, and decreasing returns to scale.
Product Costs Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials $120,000 Direct labor 60,000 Variable overhead 25,000 Fixed overhead 220,000 Required: If required, round your answers to the nearest cent. 1. Calculate the prime cost per unit.$ per unit 2. Calculate the conversion cost per unit.$ per unit 3. Calculate the total variable cost per unit.$ per unit 4. Calculate the total product (manufacturing) cost per unit.$ per unit 5. What if the number of units increased to 55,000 and all unit variable costs stayed the same? indicate the impact on the following costs. a. Total direct materials increases by 10% b. Total direct labor increases by 10% c. Total variable overhead increases by 10% d. Total fixed overhead does not change no change e. Unit prime cost does not change no change f. Unit conversion cost decreases by less than 10% What would…

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