Economies of scale are of two kinds

Q: A local entrepreneur has built a successful business which is still growing. He is aware that the…

A: A local entrepreneur has built a successful business which is still growing. He is aware that the…

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: 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: Economies to scale refer to

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

Q: A hospital provides emergency-room medical care for local residents. Suppose the hospital currently…

A: Economies of scale refers to the reduction in the average total cost of production which is secured…

Q: A hospital provides emergency-room medical care for local residents. Suppose the hospital currently…

A: Given:  Suppose the hospital provides care for  Patients: 15000 Total Cost = $60,000,000   If…

Q: At Dana's dairy farm, the average total cost of producing 19 liters of milk is $10, while the…

A:

Q: What is the value of the average total cost when Q=2? Enter your answer as a number below. Do not…

A: Given Total cost at output of 2 = 80 ATC = Total cost / output

Q: You are tasked with installing 25 industrial welding robots. It took you 15.5 hours to install the…

A: please find the answer below.

Q: Least Cost Method: *Remember the least cost method is a lot like the utility maximizing rule from…

A: The production will be efficient when the factors are used up to a point where the ratio of marginal…

Q: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: Q47 In the long run, the law of diminishing marginal returns... a. Sometimes holds, depending on…

A: Option E Law of diminishing marginal returns shows that when an additional unit of production is…

Q: The first unit of a product took 1,000 hours to build and the learning curve is 85%. How long will…

A: To produce the first unit takes 1000 hoursTo produce second unit = TN=T1(Nb) T2=1000×(2log2 0.85)=…

Q: In recent years, the United States has experienced large increases in oil production due in large…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: What is the difference between economies of scope and scale. Also include in your discussion some…

A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…

Q: Explain the difference between economies of scale and economies of scope with an example.

A: Answer to the question is as follows:

Q: Why is having a business objective of increased economies of scale always desirable?

A: Economies of Scale in the Business World When it comes to economies of scale, the size of the…

Q: A Closer Look in the Economies of Scale   Businesses wanted to reduce their cost to the minimum…

A: Companies benefit from economies of scale when their production gets more efficient. Economies of…

Q: How could you explain the difference between economies of scope and economies of scale?

A: Economies of scope and scale are concepts that relate to the cost of production of firms.  Economies…

Q: Average cost decrease indefinitely as output expands.   Is that true?

A: Economies of scale signifies a scenario where a firm reaps the cost benefits while carrying out…

Q: Some individuals decry the decline of the small family farm and its replacement with the huge…

A: The situation of reducing the total cost during the process of increasing production is referred to…

Q: . If economic profit equals accounting profit, what do implicitcosts equal?

A: Basics:- Economic Profit     = Revenue - Explicit Cost - Implicit Cost Accounting Profit  = Revenue…

Q: A lot of companies use the marginal cost function for their business models to determine the…

A: 1. We know, Average cost = AC(x) = C(x)/x  Marginal cost MC(x) = C’(x) At the critical points of…

Q: Differences between implicit cost and explicit cost

A: Explicit costs are defined as those costs which leads to an outlay of cash from the business. It is…

Q: Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing,…

A: The marginal cost represents the change in the total cost of production that results in one new unit…

Q: Would you please tell me how the economies of scale can spread out the cost of production, so that…

A: Economies of scale are achieved when a business starts witnessing the cost reductions due to…

Q: A technology firm has determined that their lowest total cost production technology is $880. If…

A: The lowest total cost of production technology is $880 The machines cost is $100 The company has…

Q: Which of the following would be a source of economies of scale? the quantity of labour more…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output thus…

Q: For firm A, is the following an internal or external economy of scale? Firm A benefits from a pool…

A: Economies of scale- It is the cost advantage experienced by companies when production is efficient…

Q: Which of the following events would contribute to economies of scale? O Large supermarkets being…

A: Economies of scale refers to decrease in average cost as production increases.

Q: Define economies of scale

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

Q: Michael must pay $700 for a statistical package, plus $140 for each additional analysis add-on. Find…

A: The cost for a statistical package is fixed is fixed because it must pay.  The cost of analysis is…

Q: Use economies of scale to link a firm’s size and its average costs in the long run.

A: Economies of scale refers to a situation when the average cost of production falls with higher level…

Q: a production function exhibits constant returns to scale, average cost will increase as output…

A: Production function, in financial matters, condition that communicates the connection between the…

Q: Define economies of scale and explain why they mightarise

A: Economics of scale are the result of production efficiency. It can be a reason for a larges firms to…

Q: Q2. Determine the returns to scale of the following production function: Y = 5K0.5 +3L0.5 (a)…

A: Returns to scale refers to how production of a good changes when units of both inputs change.

Q: Imagine you own your own business. Based on what you learned from the simulation, what factors would…

A: The firms total costs are equal to the sum of its variable costs and fixed costs. Fixed costs are…

Q: Economies of scale are of two kinds

A: With an increase in the production of output, the firm will enjoy a cost advantage, this is known as…

Q: What are the advantages of internal economies of scale? Explain them briefly

A: Economies of scale occur when there is a decline in the average cost of production as more and more…

Q: Average cost is defined as __________

A: In economics we come across the term total cost which shows the relationship between cost incurred…

Q: List some practical limits to economies of scale; that is, when should a plant stop growing?

A: Economy of scale is the improvement that a company acquires from the size or scale of manufacturing.

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: A firm produces according to the following production Function: Q= K^0.4L^0.5. MCK is $10 per K, and…

A: Returns to scale is the increase in production due to same unit increase in the inputs, labor and…

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.