For firm A, is the following an internal or external economy of scale? Firm A benefits from a pool of trained labour in the area.

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: What are  the advantages of INTERNAL economies of scale?

A: Answer: Introduction: Economies of scale refer to the decrease in the per-unit cost (average total…

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: Find out the maximum possible output for a firm with zero unit of L and 10 units of K when its…

A:

Q: Which of the following production functions demonstrates constant returns to scale? I. Q=5L+2K II.…

A: Constant returns to scale condition.Q(λK,λL)=λQ(K,L)

Q: Identify and describe three examples of economies of scale and three examples of diseconomies of…

A: Companies benefit from economies of scale as their production becomes more productive. Economies of…

Q: If a firm has TFC = $500, and TC = $800 when output is 20 units, how much is the AVC per unit of…

A: While producing goods and services sellers have to incur costs by paying various factor payments to…

Q: Again referring to the table above, assuming 5 workers per day, the total cost of producing pizzas…

A: We know,  Total cost(TC) = Fixed cost (FC) + Variable Cost(VC)

Q: In the previous Problem Set question, we started looking at the cost function C (x), the cost of a…

A: Cost function is given by C(x) = 0.04x3-20x+350

Q: Which of the following is an example of an implicit cost? Group of answer choices A)Federal taxes…

A: Implicit cost is such a cost that shows factor cost owned by entrepreneur himself and also known as…

Q: Suppose that the cost of all inputs (both labor and capitol) decreases. What will happen to the…

A: In economics, inputs are considered as factors of production. That means, inputs are those factors…

Q: Why does total cost increase faster as output increases?

A: A producer has to incur various types of costs in order to produce goods and services. This includes…

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: Distinguish between economies and diseconomies of scale, ensuring to differentiate between internal…

A: The difference between economies and diseconomies of scale: In both the enterprises: public and…

Q: Which of the following equations does not represent a plausible production function?  a. F(K,L) =…

A: Production function, in the study of economics, helps in establishing a relation between maximum…

Q: If a firm has economies of scope, which of the following would best decribe what the firm is…

A: Economies of scope is defined as a situation where the production of one good lowers or reduces the…

Q: Which of the following is likely to be the least important factor for firms in determining…

A: Production is an activity that employs labor, capital, products, and services as inputs to generate…

Q: The cost, in billions of dollars, of airing æ five-second hologram actic Chess game can be…

A: ‘Average cost’: ‘Average cost’ is the ‘total cost’ divided by the number of units of the good. It…

Q: The following table states pre-Covid round-trip airfares (for a two-week trip in February,  booked…

A: Price discrimination refers to when the firm charges different prices to different customers for the…

Q: For each of the following examples, explain whether it is a case of external or internal economies…

A: - External economies of scale happen when the expense per unit of result relies upon the size of the…

Q: What is the difference between economies of scale andeconomies of scope? How do firms consider these…

A: The concepts of economies of scope and economies of scale explains the situations when the big firms…

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: Is total cost 0 when the level of production is 0?

A: # We know that total cost is the sum of total fixed cost and total variable cost.

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: Suppose Alaska could add 1000 MWh of wind generation—which produces for four hours during the…

A: Solve with the help of graph marginal cost curve

Q: Given the input coefficient matrix for a hypothetical economy made up of only two industries as A…

A: There are two industries with input coefficient matrix A [0.1 0.5] [0.3 0.2], respectively. This is…

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: What is economies of scale? What are differences between internal and external economies of scale?

A: Economies of Scale: When a company expands its production then usually the cost per unit falls.…

Q: Determine the returns to scale for the following production functions. a) ? = K + 7L b) ? = KL3

A: Return to scale:- Returns to scale is a phrase that describes how proportionally fluctuations in…

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: If a paper mill shuts down its operations for three months so that it produces nothing, its will be…

A: Variable cost Variable expenses are volume-related and alter as production levels change. Raw…

Q: List the capital inputs necessary to produce each of the following.  cars high-school education…

A: Capital goods are durable goods that are extensively been used in the production of goods or…

Q: Define returns to scale and its implications for production decisions.

A: Returns to scale refers to the percentage change in the output with respect to the percentage change…

Q: Which of the following statements is true? Costs are always explicit, never implicit. Costs are…

A: Cost is the expenditure incurred by the firm on purchase of factors of production for the production…

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

A: Economies of scale refer to the situation where the firm’s average cost decreases as output…

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: Is it true that if a firm’s technology exhibits the decreasing return to scale, then average…

A: Introduction The scale of production in two factor production function means a given amount of labor…

Q: What would happen to output if one input would increase and the other would not?

A: Answer: Introduction: Production involves many inputs such as land labor, and capital, etc. In the…

Q: Which of the following is true: Long Run Average Total Costs are always smaller or equal to Short…

A: For a given level of output, Long Run Average Total Cost (LRAC) curve represents the cheapest cost…

Q: The Yorkshire Cricket Company makes cricket bats out of lumber supplied to it by Acme Sporting…

A: It is the ability of a business or company to earn maximum profit with low cost which is considered…