Economies of ______ occur when a single firm can produce two products for a lower total cost than two firms can produce those same products. Group of answer choices scale. efficiency. scope. output.
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: rease in the short run ease in the short run
A: Cash balance refers to the part of income that people want to hold as cash in hand.
Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…
A: Answer to the question is as follows:
Q: Marginal cost intersects average total cost at minimum average total cost. True False
A: The price curve always intersects the typical total cost curve at its lowest point because the…
Q: You are the chief financial officer for a firm that sells digital music players. Your firm has the…
A: Marginal cost: It is the cost of producing an extra unit.
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: Suppose Kim is running a digital start up company. She had total costs of $10,000 providing service…
A: When it comes to economies of scale, the size of the company matters. The greater the company's…
Q: Select choices which are true about Marginal Costs. (Select all that apply.) (change in Total Cost)…
A: Marginal cost is that cost which is incurred when one additional unit of output is produced.
Q: List and describe the 4 Ps marketing mix for a tangible product from your own.
A: The marketing mix is the model that includes the tactics and actions related to the place, price,…
Q: A rice farmer wants to analyze his rice farming. Help the farmer to identify the costs incurred in…
A: There are various Cost/expenses being incurred by the firm depending on the nature of the firm and…
Q: Draw the short-run average total cost (ATC), average variable cost (AVC), and marginal cost (MC)…
A: Average total Cost is the total cost per unit of output. Average Variable Cost is the variable cost…
Q: Amazing is evaluating three locations for a second headquarters. Costs for construction at location…
A: The break even point is a total cash inflow point, that would be equal and use the total cash…
Q: . Over time Yasir decides to expand his business. In the long run he first experiences economies of…
A:
Q: In the ice cream industry, in the short run, what cost includes the cost of cream and sugar, but not…
A: The marginal cost- is the difference in overall production costs resulting from manufacturing or…
Q: Give the area that represents the following Total Cost Total Variable Cost Total Fixed Cost Total…
A: Total cost is the total expenditure incurred to produce goods and services during a specific period…
Q: If Farmer Jones plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she…
A: Total cost is the cost that includes the fixed as well as variable cost in the product.
Q: Explain the industry structure with graph and discuss the reasons for economics of scale and…
A:
Q: When diseconomies of scale occur: Multiple Choice C marginal cost intersects average total cost. the…
A: Whether the firm is having economies of scale or diseconomies of scale depends upon the long run…
Q: QUESTION 1 Match each of the following terms and descriptions Accounting Profit A. total revenue…
A: 1. Accounting Profit: It is the difference between revenue and cost. The cost includes only explicit…
Q: n the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average…
A: Introduction: Short-run is a term that asserts that at least one input is fixed while others are…
Q: Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no…
A: An economic profit is the distinction among the sales a industrial entity has acquired from its…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: In case of perfect competition there are large number of buyers and sellers. The firms sell…
Q: Gap has too many 12,500 square feet stores. The target store size is 6,000 to 10,000 square feet, so…
A: Cost advantages accrue to companies when their production processes become more streamlined. By…
Q: Productive efficiency means output (production) is produced in the long run at
A: A perfectly competitive market is the type of market structure in which several buyers and sellers…
Q: Klee Motors is a small car leadership. On average, it sells a car for $24 000, which it purchases…
A: It is given that the firm has a few fixed costs such as the rent which is equal to 60,000 per month,…
Q: What is the difference between accounting profit and economic profit? Select one: a. Accounting…
A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…
Q: Differentiate economies of scale and economies of scope
A: Meaning of Economics of Scale: The term economics of scale refers to the situation under which the…
Q: Accounting profits are: A.) economic profit less explicit costs. B.) less than economic…
A: "There are two kinds of costs explicit costs (are out of the pocket costs for a firm) and implicit…
Q: ART II: True/False and Multiple Choice In economics, implicit costs refer to the…
A: 1.Implicits costs are those that have been occurred but are not recorded or reported as an…
Q: discuss the following and draw and label diagrams. economies of scale and economies of scope
A: Economies of Scale: Economies of scale refers to a situation when the firm's average total cost in…
Q: Stretch the MC, ATC and AVC curves in a diagram. Explain the reason why MC and ATC curve is shaped…
A: The marginal cost (MC) shows the incremental cost incurred when one additional unit is produced. It…
Q: Suppose a firm producing cell phones is operating such that marginal costs are much lower than…
A: The marginal cost of the firm is the cost it will incur by producing one additional unit of output.…
Q: In the short run, the firm should continue to produce if and only if a.Price exceeds average total…
A: Total fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: 1)As a firm increases production, average total cost _____. a will stay the same b will decrease c…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Fixed Cost Average Fixed Cost Total Variable Cost Average Variable Cost Total Cost…
A: Marginal cost measures the additional cost incurred in order to produce an additional unit of…
Q: What is the term for the lowest level of output at which a firm's goods are produced at minimum…
A: please find the answer below.
Q: Mariam has a small bakery. She spends 200KD a month to rent a building for his company, 600KD a…
A: Mariam is using both fixed and varaiable inputs. Where labor is the only available input for her.
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…
A: Macroeconomics and microeconomics are important part of country mechanism. Aggregate demand and…
Q: a software production firm, average product has started falling and total output indicated…
A: A mathematical association between marginal product(MP) and average product(AP) expressing that the…
Q: A snowboard company currently hires 10 skilled employees who are paid a weekly wage of$1,000. The…
A: No. of workers hired = 10 Weekly wage per worker = $1000 Weekly wages for 10 workers = $ 10000 Fixed…
Q: Q3. The law of diminishing returns applies only to businesses with very simply production. Your…
A: The Law of diminishing marginal returns states that the increase of a single factor of production…
Q: What is the term for what you give up to obtain an item? Question 4 options: opportunity cost…
A: Implicit Cost:- The expenditure which have already incurred which isn't shown or acknowledged as a…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What's the meaning of "economies of scope"? A. producing at a higher output means incurring lower average cost B. producing at a higher output means incurring higher average cost C. adding product line utilizing the existing resources of the company will reduce the average cost of production D. all are correct E. none is correctSelect choices which are true about Total Costs. (Select all that apply.) Question 38 options: Total Variable Cost plus Total Fixed Cost always horizontal Average Total Cost times Quantity (Average Variable Cost plus Average Fixed Cost) times Quantity always decreases as Quantity increases always increases as Quantity increasesWhich of the following is wrong? Select one: a. Economies of scale refer to the production of two or more goods and occur when joint production is less costly than the sum of the costs of producing each good separately. b. When the firm experiences economies of scale, its long-run average cost curve is downward sloping. c. The expansion path describes the cost-minimizing combination of inputs that the firm chooses for every output level. d. When costs increase proportionately with output, the firm’s long-run average cost curve is horizontal.
- (a) Shows the cost of producing any level of output. (b) Is a technological relationship between factors of production and output. (c) Expresses the least-cost method of producing a given level of output. (d) Expresses our ability to produce various combinations of goods, using all of our resources. (9) The short run is a time period in which: (a) all resources are fixed. (b) the level of output is fixed. (c) the size of the production plant is variable. (d) some resources are fixed and others are variable. (10) The law of diminishing returns states that: (a) as a firm uses more of a variable resource, given the quantity of fixed resources, the average product of the firm will increase. (b) as a firm uses more of a variable resource, given the quantity of fixed resources, marginal product of the firm will eventually decrease. (c) in the short run, the average total costs of the firm will eventually diminish. (d) in the long run, the…A snowboard company currently hires 10 skilled employees who are paid a weekly wage of$1,000. The cost of capital is $3,000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company’s cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? YES/NO Explain 2(a) What core principles should be considered in the snowboard company’s decision making? Scarcity, Choice and Opportunity Cost Cost-Benefit analysis Incentive Principle Diminishing Returns Select one: All principles considered (i) only (i)and (ii) only (i), (ii) and (iii) only (ii) and (iii) only (i) and (iv) only (ii) and (iv) only (iii)and (iv) only (ii), (iii) and (iv) onlyGive typing answer with explanation and conclusion to all parts
- "The four factors of production are needed in an efficient market to provide goods and services at an affordable price at the right time, place and mix,"... "Missing the calibration of these factors can be disastrous for the supplier and consumer." The supplier may face higher costs of production, forcing them to charge a higher price to the consumer or risk going out of business.The supply curve overtime is more elastic than the supply curve over the short period of time because, given sufficient time *production techniques become more expensive.new firms can enter the industry and old firms can increase their plant size.producers become more competitive.consumers become more demanding. Economic profit is frequently *greater than total revenue.defined as total revenue minus total fixed cost.irrelevant to the owner of a firm who is concerned instead with accounting profits.less than accounting profit. Diminishing returns *characterize all stages of production.eventually occur in all short-run production situations.are always associated with declining average product in the short-run.exist in the short run, because as additional units of an input are hired, the firm has to accept less satisfactory units.A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000. The cost of capital is $3,000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company’s cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. What core principles should be considered in the snowboard company's decision making? (i) Scarcity, Choice and Opportunity Cost (ii) Cost-Benefit analysis (iii) Incentive Principle (iv) Diminishing Returns
- Long-run average total cost (Multiple Choices ) might have an upward-sloping segment that indicates dis-economies of scale has a minimum point at the firm's minimum efficient scale shows the minimum average total cost for each level of output that can be produced might have a downward-sloping segment that indicates economies of scale might have a flat portion that indicates a constant average cost over that range of output.The Campus Crustacean Company receives $2 per box for its crawfish and is selling 1,600 boxes to maximize its profits. What is the profit per box of crawfish at this equilibrium level of output if the average variable cost is $1 per box and total fixed costs are $1,200? Multiple Choice $0.25 $0.50 $1.00 $1.25Costs that do not vary with output are Question 8 options: a) fixed costs b) variable costs c) marginal costs d) explicit costs