If a firm finds itself operating in Stage I, it implies that Select one: a. fixed inputs are extremely expensive. b. it underinvested in fixed capacity. c. variable inputs are extremely expensive. d. it is not using all of its fixed capacit
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If a firm finds itself operating in Stage I, it implies that
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- ABC Ltd. makes a television table that sells for $60 per unit. It has variable costs of $20 per unit and incurs fixed costs of $110,000 per period. Create the mathematical model that represents the problem a.P= 60X- 110,000 – 20 X b.P= 20x- 110,000- 60 X c.P= 60 X- 110,000X- 20 d.P= 20X- 60 – 110,000 X Which of the following is a definition for variable costs? a.Costs that contain a fixed and variable element b.Costs that remain the same whatever the level of output c.Costs that will remain fixed as output increases until the activity reaches a level where the costs have to increase sharply d.Costs that vary directly with the number of units producedA firm’s long-run total cost curve is given by: C(q) = 40q − 10q2 + q3 . Over what range of output does this technology exhibit decreasing returns to scale? Group of answer choices q>8 q<5 None of the above are correct. q>10 q>5 Note: don't use chat botRising short-run average variable costs of production for a firm indicate that Question 4 options: A) average variable costs are below average fixed costs. B) marginal costs are above average variable costs. C) average total costs are at a maximum. D) average fixed costs are constant.
- True or false. The U shape of the long-run ATC curve is the result of diminishing returns.Answer the following Questions. Include referencing where additional sources have been used a. Why will firms in most markets be located at or close to the bottom of the long-run average cost curve? b. Distinguish between implicit and explicit costs. How is it possible to have positive accounting profit and negative economic profit concurrently? c. Distinguish between economies of scale and constant returns to scale. What shape will the long-run average cost curve have for economies of scale and constant returns to scale. d. What is the difference between production in the short run and production in the long run? Explain the shape of the long-run cost curve in relation to short-run cost curves?A firm's total revenues depend on the amount produced (q) according to the function R=240 q-q^(2) Total costs also depend on q:C=q^(2)+60 q+120 a) What level of output should the firm produce in order to maximize profits? What will profits be? b) Show that the second order conditions for a maximum are satisfied at the output level found in part b) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered bycurrent decisions.2. It is possible for the economic profit and accounting profit to be equal to one another.3. If Ed<1, an increase in price leads to higher revenue.4. In the long run, at least some of the inputs should be variable.5. Production is a transformation of resources in to goods and services.In the long-run Firm A incurs total costs of $1200 when output is 30 units and $1550 when output is 40 units. Firm A exibits A.constant returns to scale B.marginal returns to scale C.increasing returns to scale D.decreasing returns to scale.Q1. If fixed cost (FC) is $50, variable cost (VC) is $100, and output (quantity) is 3, what is average total cost (ATC)? Q2. When a company triples all of its inputs, its Longrun Average Cost (LAC) goes up. The firm has economies of scale or diseconomies of scale?
- Long-run average cost (AC) of operation may decrease for three reasons.a. List and explain the three reasons why the average unit cost may decrease in the auto industry or any other industry over time. b. Give an example of the learning curve for a business operation where the average costs were reduced due to cumulative production experience. c. Suppose that the global learning curve for solar power installation in the US is at 93% according to a recent study. interpret what this learning rate implies. d. How might the learning curve information help businesses in making operational decisions?a. What is true about output levels 350, 700, 1,050, 1,400, and 1,750?Choices below. (Economic capacity ,Maximum cost, Economies of Scale b. What is the right size of a plant to produce an output of 875? (Plant1,Plant 2, Palnt 3, Plant 4, Plant 5) c. Between what plant sizes does the firm experience economies of scale? (Between plant1 and 3 ,Between plant 3 and 4, Between plant 3 and 5)2. Total Cost Function is TC(q)=2q 2 + 20q +50 I. Show that MC is less than AC, where AC is falling. II. MC=AC at the point where AC curve is Horizontal. III. Mc exceeds AC where AC is rising
