Explain why firms face different costs in the long run than in theshort run.

Q: 19,) In the short run, when the firm produces zero units of output, which of the following is always…

A: The firms, and businesses are considered to be one of the most important entities in the economy.…

Q: As output increases O MC curve initially falls and then

A: To find : What happens when output increases.

Q: which levels of output does WW experience economies of scale? ___________    which levels of…

A: ‘Returns to scale’ describe what happens to a firm in the long-run as the scale of production…

Q: During the recent auto sales slump, GM, Ford, and Chrysler decided it was cheaper to sell cars to…

A: The article mentions anout selling cars at a loss. It is referring to economic cost.

Q: 20 300 30 480 |40 700 50 1000 (a) Calculate the total cost, average variable cost, average total…

A: Total cost is the sum of the variable cost and the fixed cost.

Q: Suppose that firms in the zipper industry have the production technology: F(K,L)=4K^(3/4) * L^(1/4)…

A: Answer: Given: Production function: FK,L=4K34×L14 Cost/price of labor = 27 Cost/price of capital =??…

Q: WW is a small automobile manufacturer.  The table below shows WW’s long-run average total cost:…

A: Theory and definitions- There are three types of returns to scale- Economies of scale The constant…

Q: (The Short-Run Firm Supply Curve) Use the following datato answer the questions below:…

A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: What is the relationship between the marginal cost (MC) curve and marginal product MP) curve of a…

A: The marginal product is the change in the total product when an additional unit of the variable…

Q: (d) What is the variable cost? ta What is the fixed cost?

A: since the cost of renting tuxes for choral societies formal is $19 down plus $85per tax. so, The…

Q: Let the hourly production function for Fred's Fountains be the following: .251.5 The rental rate of…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Make a sketch of Lin’s short-run cost curves

A: Short-run cost curve represents the cost incurred by the producer by producing each quantity of…

Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…

A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…

Q: C. What is Karol's fixed cost per lobster at an output level of 60,000? D. At an output level of…

A: In the given question, the cost curves of Karol's Lobsters Inc is given. We know that: Total Cost =…

Q: 4) If AVC and ATC are both above the MR=P=AR=D line what will happen in the short-run and the…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

Q: The period of time for which there are no fixed factors of production is O Market period O Long Run…

A: Long run and short run differ from each other on the basis of the variability of factors of…

Q: Define and explain the difference between short run and long run and identify the relationship…

A: Short-run average cost curves: In the short run, the shape of the average cost curve is 'U' shaped.…

Q: What is kaly to happen in the long nun te fems that do net reach minimum efficient scale? Afm hat…

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

Q: How do you derive the marginal cost (MC) curve of a firm? Explain.     Answer question step by…

A: The total cost of a firm is the cost of producing the products which is the sum of total fixed and…

Q: Explain the difference between the short and long run

A: Short run It represents the time period in which input quantity of at least one input is fixed…

Q: What is the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon?

A: The Law of Diminishing Return: It occurs when the employment of input with the other fixed input of…

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

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

Q: Draw a graph and complete a short-run cost table by using the information provided.       (TP)…

A: In the short run, a firm will have two types of cost: fixed cost and variable cost.Total fixed cost…

Q: Sketch a typical LRATC and show all the important areas and points on it and show where the firm…

A: Long-Run Total Cost (LRATC): What Is It? When all inputs are regarded to be variable, and the scale…

Q: what is the importance of long run and short run production in production theory?

A: A production function is a functional relationship between the inputs which are used in the process…

Q: SE THE GRAPH TO ANSWER THE FOLLOWING QUESTIONS: (IF REQUIRED, USE THE DISCREET NUMBER OF BARRELS).…

A: The maximizes profits where the MR= MC. The MC curve cuts the AVC cost curve at its minimum point.…

Q: Can a firm earn an economic loss and an accounting profit at the same time?

A: The measure that depicts distribution of income to owner in a profitable process of production in…

Q: 26. Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to…

A: Labor is one of the four factors of production used in production of goods and services, among land,…

Q: Briefly explain what is meant by the term "fixed costs" and provide three examples of same.  What…

A: A) The term fixed expense alludes to an expense that doesn't change with an increment or decline in…

Q: (d) If the minimum point of the short run ATC curve for all firms (existing and potential) is also…

A: * SOLUTION :-  *D)

Q: How does the firm increase its production in the long-run? What input/s can it use to increase…

A: The process of production is the transformation of the raw materials into the final finished goods…

Q: The owner of Tie-Dved T-shirts, a perfectly competitive firm, hires you to give him economic advice.…

A:

Q: c. Does the firm operate in the short run or long run? Why?  d. What is the efficient scale of the…

A: Answer to the question is as follows:

Q: Please don't copy ans                      Economics You are the owner of a motorbike company that…

A: Production function of old firm : f(o) = mL0.5 Of new firm : f(n) = nL0.5 Cost functions are the…

Q: An economic consultant is presented  with the following total product table and askedto derive a…

A: Labor TP MP TC MC AC AP 1 5   10   2 5 2 15 10 20 1 1.33 7.5 3 30 15 30 0.667 1 10 4 36…

Q: Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?

A: Answer - In the long run where the every input can vary and as in the long run where firms can make…

Q: Why do most fixed costs become variable costs in the long run?

A: Variable costs- Due to the sum of a product or service being generated, variable costs change. The…

Q: Explain average fixed cost (AFC)?

A: Costs are the sums of money spent by producers on various variables of production in order to…

Q: Caogs uoy o 7. MR of the firm falls from 20 to (-)20. Find the corresponding TR, if AR = MR =3 20…

A: Average Revenue (AR) This refers to the amount of money earned per unit or user. Average revenue is…

Q: c) What quantity on the graph represents long run equilibrium if the firm were perfectly…

A: Multiple vendors in the market offering homogeneous goods at the same price is referred to as…

Q: Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also…

A: AVC is the average variable cost. It is equal to VC/QATC is the average variable cost. It is equal…

Q: How do you derive the marginal cost (MC) curve of a firm? Explain.    use graph.

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