he supply curve overtime is more elastic than the supply curve over the short period of time because, given sufficient time * production techniques become more expensive. new firms can enter the industry and old firms can increase their plant size. producers become more competitive. consumers become more demanding.

he supply curve overtime is more elastic than the supply curve over the short period of time because, given sufficient time * production techniques become more expensive. new firms can enter the industry and old firms can increase their plant size. producers become more competitive. consumers become more demanding.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

See similar textbooks

Similar questions

You are a manager of a firm that experiences economies of scope between all the products manufactured. If the company decides to sell off an unprofitable business line, it could lead to: a major reduction in costs. only a minor reduction in costs. only a minor reduction in sales. a major reduction in sales.
Normal profits are Multiple Choice the profits reported by accountants on a firm's annual financial statement. identical to economic profits. determined by subtracting total costs from total revenues. considered an implicit cost by economists.
multiple choice if a firm is producing at an output where the total revenue equals total cost, 1- revenue is maximized 2-cost is maximized 3-cost is minimized 4-economic profit is zero
The break-even volume is the point at which ________. Select one: a. the production of one more unit will not lead to increase in demand b. demand equals supply c. the total revenue and total cost curves intersect d. the company can pay off all its long-term debt
Select all that are true regarding profit: (please choose all the answers that are correct) Profit is the residual revenue after the cost of inputs Profit must consider both fixed and variable costs Increases in productivity increase profits, if output is increased Profits do not accrue to HH
Organizations that maintain a large amount of inventory of raw materials will incur heavy losses in case of: Select one: Sudden increase in prices. Sudden decrease in prices. Sudden scarcity in materials. High increase in demand.
A firm's inventory is the orders for goods that have yet to be produced. True Or False
Design a process flowchart for hotel staff who are in charge of getting online room bookings and confirming rooms for customers through emails after receiving their orders with a required deposit. Your process flowchart needs to solve 3 following situations: •Out of room •Available rooms matching demand •Available rooms not matching demand
The period of time long enough to allow a firm to vary all of its inputs, to adopt new technology, and to increase or decrease the size of its physical plant is considered the Group of answer choices immediate run. short run. long run. market opening. cannot be determined with the given information. Give typing answer with explanation and conclusion
Revenue from product X is $11,000, variable costs are $7,000, and allocated fixed costs are $6,000. If you drop product X in the long term, profit will:
A multi plant firm has equated marginal costs at each plant. By doing this:a) profits are maximized b)costs are minimized given the level of output c)revenues are maximized given the level of output d) none of the above
Normal profit: Group of answer choices 1is earned when economic profit equals opportunity costs 2is shown in a firm’s financial (accounting) statements 3is a zero economic profit 4is earned when total revenues exceed total costs that include also opportunity costs