Explain the difference between increasing returns to scale and economies of scale. In what way are the two concepts sometimes related?

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: 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: A cost function is given. C(q) = 3800 + 7q – 0.03q² + 0.0003q³ (a) Find the average cost and…

A: Disclaimer :- as you posted multipart questions we are supposed to solve only the first 3 questions…

Q: What shapes would you generally expect each of the following cost curves to have: fixed costs,…

A: Cost curves shows how the cost of production changes when output/quantity changes.

Q: Which of the following production functions exhibit(s) constant returns to scale? I. Q= KL K+L II. Q…

A: Given:  There are three production functions: 1. Q=KLK+L2. Q=2K+L3. Q=K0.8L0.2

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: Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to…

A: Definitions In the short run, increasing input after reaching maximum capacity while keeping at…

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: Does a relationship exist between increasing returns to scale and long-run average cost? Ex with the…

A: Economies of scale or increasing returns to scale are utilized conversely; both implies to a fall in…

Q: Define and explain the difference between economics of scale and economies of scope. Include an…

A: Definition: Economies of scale are cost-saving strategies in a production process by increasing the…

Q: Which long-run average total cost (LRTC) graph exhibits diseconomies of scale? LRATC LRATC

A: "Correct option is the first graph which is upward sloping."

Q: If all resources used in the production of a product are increased by 20 percent and output…

A: In economics, the cost of production is outlined because the expenditures incurred to get the…

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: 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: 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: Answer the question on the basis of the following cost data. Average Fixed Average Variable Output…

A: Average variable cost (AVC): - it is the average value of the cost incurred due to the employment of…

Q: Explain the general shape of the long run cost curves in relation to economies and diseconomies of…

A: The shape of long run cost curve changes depending on the returns to scale.

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

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…

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: What are the advantages of internal economies of scale ? Explain shortly.

A: Internal economies of scale mean the company improves output when the average cost of the product…

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: Q2. Determine the returns to scale of the following production function: Hand written plzz Y = 5K0.5…

A: Returns to scale: - returns to scale show the change in output due to the change in scale of…

Q: Define economies of scale

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

Q: Please give 2 examples of economies of scale, diseconomies of scale, and constant returns of scale.…

A: Return to scale is a long run concept, which measures the change in total output due to the change…

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 are some reasons we might see increasing returns to scale?

A: When the output grows by a higher percentage than the growth in inputs during the manufacturing…

Q: For a constant returns to scale production function a. marginal costs are constant but the average…

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

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: Why the average variable cost (AVC) and average total cost (ATC) curves are U-shaped (decreasing,…

A: Average variable cost (AVC) The average variable costs (AVC) are calculated by dividing total fixed…

Q: Compare and contrast economies of scale and economies of scope. Give an example of each from your…

A: Introduction Economies of scale: Economies of scale occur when the quantity of goods increases and…

Q: How would each of the following affect average total cost, average variable cost, and marginal cost?…

A: GIVEN  How would each of the following affect average total cost, average variable cost, and…

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…