Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?

Q: Complete the following table and answer the short discussion question. Average Cost (AC) Average…

A: In economics, TFC is the cost incurred when the output production is zero; therefore, here, TFC is…

Q: Explain how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

Q: Why will firms in most markets be located at or close to the bottom of the long-run average cost…

A: In the long run, all the costs are the variable costs. In long run, costs are lower than that of in…

Q: Graphically show the relationship between the total fixed cost, the total variable cost, and the…

A: Total Cost = Total Fixed Cost + Total Variable Cost

Q: Jesse owns a shop called J's Select Store in Wisconsin.    During the first year of operation, J's…

A: Given from the information: Jesse spent on labor $5,000 Jesse spent on maintenance $2,000 Jesse…

Q: customers there while you golf. Why do you think a miniature golf course would stay open during the…

A: *answer:

Q: Select choices which are true about Total Costs.  (Select all that apply.)   Question 38 options:…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: Why does as output increases, average variable cost initially declines and eventually begins to…

A: In an economy, the cost is analyzed in different ways, such as total cost, marginal cost, average…

Q: How General Motors improve or operate their economies of scale?

A: This significant car maker has encountered interruptions to its tasks as interest in autos has…

Q: Suppose that the cost of all inputs (both labor and capitol) decreases. What will happen to the…

A: In economics, inputs are considered as factors of production. That means, inputs are those factors…

Q: Companies can typically maximize their prots by operating at the minimum average total cost curves,…

A: Economic profit= (Price-ATC) *Quantity

Q: Q45 When a factory is operating at the level of output where its short-run average total cost is at…

A: We know that Short-run average expense (SRATC/SRAC) approaches average fixed expenses in addition to…

Q: A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total…

A: In business, the average total cost, or ATC, is the sum of all product costs divided by the volume…

Q: Which of the following statements is true about accounting profit?: Because economic cost includes…

A: Accounting profit is the revenue a firm receives as well the monetary cost it pays.

Q: In 2009 General Motors (GM) announced that it would reduce employment by 21,000 workers. What does…

A: In microeconomics, the study of the resource market where the demand for the factor is a derived…

Q: Explain why an increase in the price of an input must typically cause an increase in the long-run…

A: As we know in long run , firms can increase both factors simultaneously and due to this firm…

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

A: The return to scale states the change in the output with the proportionate increase of all the…

Q: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,…

A: Here, an improvement in the technology used, would decrease the cost and will shift the cost curve…

Q: A key difference between accountants and economists is their different treatment of the cost of…

A: Any firm main objective is its profit maximization and a firm maximizes its profit by producing at…

Q: Output Average Cost ( at that output level) Marginal Cost of that Car 9,999 ? $ 12,000 10,000 $…

A: The extra cost incurred in the development of one more unit of a good or service is known as…

Q: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

Q: What are the short-run and long-run costs of the production of Walmar

A: There are various costs incurred by a firm during its production process and even in the pre and…

Q: For an increase in output, average costs change by more in the short-run than in the long-run, but…

A: find below the answer.

Q: Consider Firm GM, a car manufacturer. Suppose you have some information regarding the cost curves of…

A: Average cost is initially more and then decreases.

Q: you assume that a firm has a U-shaped average cost curve, why would large and small firms have…

A: The economies and diseconomies of scale lead to the U shaped average cost curve.

Q: If people thought in a rational way before spending money on anything, would they truly avoid sunk…

A: Rational behavior refers to the situation where people making their decision sensibly. In other…

Q: What is economies of scale? What are differences between internal and external economies of scale?

A: Economies of Scale: When a company expands its production then usually the cost per unit falls.…

Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…

A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…

Q: In the short run, a firm's total costs of producing 100 units of output equal $10,000. If it…

A: The firms, and businesses are the entities who are involved in the production activities, and the…

Q: What must an entrepreneur do to earn a profit? How do theactions of firms earning profits influence…

A: Profits are important as they show how productive a company's activities are. Furthermore, profits…

Q: total output

A: An increasing-cost industry tends to occur because the entry of new firms as being prompted by an…

Q: What is the economies of scale of General Motors?

A: The advantages of cost which is being obtained by the enterprises being solely due to their scale of…

Q: In 2005 General Motors (GM) announced that it would reduce employment by 30,000 workers. What does…

A: Meaning of Marginal Revenue Product and Marginal Resource Cost: The term marginal revenue of…

Q: Explain how a firm is able to deal with both fixed and variable costs at the same time

A: Fixed cost is the cost of production which does not change or constant whatever the amount of good…

Q: please pick an example of three types of costs that a business can incur and briefly explain whether…

A: Fixed Costs are those costs that remain constant at all levels of output.  Variable Costs are those…

Q: Is it true that if a firm’s technology exhibits the decreasing return to scale, then average…

A: Introduction The scale of production in two factor production function means a given amount of labor…

Q: For an increase in output, average costs change by more in the short run than in the long run, but…

A: Average cost is the total cost per unit of output.  AC=TCQ

Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: Explain why marginal costs increase above some level of production in the short run.

A: The marginal cost is the additional cost incurred from producing one additional unit of goods and…

Q: Why will a firm never plan to supply an output at which it has increasing returns to scale?

A: Returns to scale is an important concept in economics. Returns to scale indicate the proportion of…

Q: True or False: For an increase in output, average costs change by more in the short-run than in the…

A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…