How the shape of the total variable cost curve (TVC) and total cost curve (TC) is related with the law of diminishing marginal returns in the short-run. Support your explanations with graphs and formula/equations.

Q: Which of the following is true in the short run at the output level where average total cost is at…

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

Q: Which of the following is true in the short run at the output level where average total cost is at…

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

Q: Say that neither labor nor machines are fixed but there is a 50 percent quick-order premium paid for…

A: Explicit costs and revenues are those financial transactions that are directly related to a decision…

Q: Which of the following statements is entirely correct? OBoth economies of scale and diminishing…

A: Economics of scale refers to impact on the total output if all the input factors are changed. While…

Q: Write a short note on Law of diminishing returns – implications for the short-run cost curve

A: Law of diminishing return to scale implies that as the number of a variable input is raised keeping…

Q: Which of the following represents the key difference between the short run and the long run? O The…

A: Costs are the expenses incurred by a firm in the production of its output. In production, there are…

Q: 3. What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b.…

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: The table below shows the short run cost for producing bicycles. Complete all missing values in…

A: Answer 1 To complete the above table we use the following formula Total Cost = Fixed cost + variable…

Q: Explain and identify the relationship between total cost, average cost and marginal cost using…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: Complete the following table of various types of cost for a firm in the short run. Assume that Total…

A: The expenses that are incurred for carrying out day-to-day transactions are known as costs. There…

Q: What is the difference between production in the short run and production in the long run? Explain…

A: The short-run is a notion that states that at least one input is fixed while the others are variable…

Q: Refer to Figure 1. Which of the short-run average cost curves correctly depict economies to scale?…

A: Long-run average cost The long-run average cost is tangent to the falling portion of the short-run…

Q: Answer the question of the production cost as follows: 1.1  Based on Table below, calculate average…

A: You have posted multiple question, as per guidelines we will solve one question at a time.  Given…

Q: Complete the following table by calculating marginal product and average product.       Plot the…

A: INPUTS OF LABOR TOTAL PRODUCT MARGINAL PRODUCT AVERAGE PRODUCT 0 0 0 - 1 15…

Q: Indicate how each of the following would shift the (1) marginal- cost curve, (2)…

A: Marginal cost: It represents an extra cost of producing an extra unit of output. In the beginning,…

Q: In the given figure, short-run cost curves are depicted. What role does the graph's Curve Y…

A: "Cost curves in economics represents a graph of the costs involved in the production process as a…

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: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

Q: Q50 The point of tangency between the short-run average total cost (SRATC) curve and the long-run…

A: Answer: The long-run average total cost curve is tangent to the minimum points of the short-run…

Q: curve II is the

A: In this figure there are three curves they are Total cost, Total fixed cost and Total variable cost.

Q: Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are…

A: Demand is the absolute quantity of commodities for which the consumers are ready to purchase at…

Q: Explain why the red curve is an incorrect representation of a long-run average cost curve. Note: the…

A: The average cost is the called the per unit cost of production. The AC = TC/Q. The long run Average…

Q: 2.1 For each of the following, decide whether you agree or dis- agree and explain your answer: a.…

A: There are decreasing, increasing and constant returns to scale.

Q: A producer borrows money and starts a business. He himself looks after the business. Identify…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: What is the difference between production in the short run and production in the long run? Explain…

A: please find the answer below.

Q: Which of the following statements are true according to the previous graph? Check all that apply. O…

A:

Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be…

A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales…

Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…

A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…

Q: Concentrate on the following production function: 10KL Q K+L Suppose w = Php 1, r = Php 4, and K = 4…

A: "A production function depicts a relation between inputs involved in the production process and…

Q: The following graph shows the short-run average total cost curves for different plant sizes and the…

A: In the long run firm chooses to operate at a level where long run average cost is minimized.

Q: Which of the following statements regarding a firm's long-run average total cost (LRATC) curve and…

A: In the economy, there is a difference in the short-run and long-run cost curve of a firm because in…

Q: Question 3 Discuss the relationship between Long-Run Average Cost and Short-Run Average Cost for a…

A: The short run average cost would result in the change in the cost with the change in output in the…

Q: Which of the following statements is generally correct? * O The long-run average total cost curve is…

A: The average total cost curve refers to the curve that provides information about the mean value of…

Q: Show the relationship between short-run marginal and average cost curves, and long-run marginal and…

A: In the short run there are two types of costs:- fixed costs and variable costs. In the short run…

Q: rue or false 1-The marginal cost curve intersects the minimum point of both the average total cost…

A: Marginal cost refers to the additional cost that incurred due to increasing one more unit of output.

Q: 1. Evaluate the view that the main goal of firms will always be cost minimization.

A: Note: Only first question is answered since the exact one wasn’t specified, if you want answers for…

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…

Q: The following graph shows the short-run average total cost curves for different plant sizes and the…

A: Long run average cost shows the relationship between average total cost and the quantity of output…