For an increase in output, average costs change by more in the short-run than in the long-run, but for a decrease in output, the opposite is true. State wether the statement is true or false

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

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: A firm’s production function is given by q = min{M, L1/2}, where M is the number of machines and L…

A: Given production function q=min(M,L1/2) Price of Labor, W=1 Price of Machine, Pm=2

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

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Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Short run average cost curve is the per unit cost of production in the short run. In the short run,…

Q: The marginal cost curve intersects the average total cost curve at the level of output where average…

A: Marginal Cost (MC): Marginal cost occurs when producing an extra unit of output. Average total cost…

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Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: To produce 100 bikes using 1 factory, short run average cost is $360.

Q: If the fixed cost of Alex’s engraving business is $100, and the variable cost of each engraving job…

A: The total cost refers to the sum of the fixed costs of production and the variable costs of…

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A: In a two factor production function, the scale of production refers to the quantity of labour and…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: No. of factories Q=100 Q=200 Q=300 Q=400 Q=500 Q=600 1 260 200 160 200 280 400 2 330 240 160 160…

Q: In long run production, which of the following does NOT fluctuate? OA All costs can fluctuate in…

A: Money has been evolved since the ages and everyone uses money for number of purposes. There are…

Q: If the per unit price of labor, a variable resource, increases, it causes which of the following? a)…

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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: Assume that in the short run a firm is producing 500 units of output, has average total costs of…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…

A:

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

A: Economies of scale and returns to scale are two sides of the same coin.

Q: Which statement is nottrue regarding the total variable cost curve? Select one A. It shows the…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: Assume that Peter's short run Total Cost Curve is TC = 20,000q- 200q² +q*. Calculate his (short run)…

A: Average total cost is total cost divided by quantity.  ATC = TC / q => ATC = (20,000q - 200q2 +…

Q: The figure below shows a firm's long-run average cost curve (LAC) in light 2. blue. Three of the…

A: A long run average cost curve is known as an arranging bend. This is on the grounds that a firm…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: There are 3 possibilities in short run: If the firm uses only 1 factory then its short run will be…

Q: or a decrease in output, average costs change by more in the long run than in the short run - True…

A: If there is a decrease in the production, short-run average total cost and long-run average total…

Q: Determine whether each of the statement is true, false, or uncertain. If the statement is false or…

A: The diminishing marginal product of labor is a short-run phenomenon, which explains that after…

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A: Returns to scale denote the relationship between inputs and outputs.

Q: 600                 2100                 2500                 2600…

A: Capital is a fixed factor. A fixed amount is assumed to be invested, the interest on which is 10%…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Short-run total cost (SRTC) and long-run total cost (LRTC) curves increase in the output value…

Q: Which statement is nottrue regarding the total variable cost curve? Select one O A It shows the…

A: The total variable cost is the cost incurred on the variable factors of production.

Q: Can total cost of the firm be zero? if yes what's the production point at this level

A: Total cost of the firm is the combination of fixed cost of the firm such as rent of the workplace…

Q: Suppose that Hyundai increases the amount of capital, labor, and other inputs it uses by 10% and as…

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

A: * SOLUTION :-  *D)

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: since you have asked multiple questions and according to our policy we can only solve the first part…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Ike's bikers is a major manufacturer of bicycles.  It currently produces bikes in one factory, and…

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: a) Marginal Cost The marginal cost of production is the difference in total production costs that…

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: QUESTION 6 When Hidden City Cafe uses K units of capital and L units of labor, it can produce Q…

A: Q = 5L1/2 L1/2 = Q/5 Squaring, L = Q2 / 25 TC = wL + rK TC = 25 x (Q2 / 25) + 20 x 5 TC = Q2 + 100

Q: Average Total Cost ($ per tablet) Q=400 Number of Factories Q=100 Q=200 Q=300 Q=500 Q=600 1 400 300…

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Q: How and why does a firm’s average-total-cost curve differ in the short run and in the long run

A: Short-run period is that period of time in which a firm can change its level of output by only…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.