If a firm quadruples (4x) in size and output increases sixfold (6x), what is the returns to scale?

Q: Suppose you are a producer of motor vehicles, explain with the use of examples the difference…

A: Economies of scale exist when since a long time ago run normal total expense diminishes as yield…

Q: A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached…

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

Q: B. Refer to the figure below. LRAC a. In the short run, capital is a fixed cost. Draw for a few…

A: Short Run Average Cost (SRAC) is equal to average fixed cost and average variable cost. It is…

Q: 4. Select the production function with increasing returns to scale: A. q = (L+ 1)K B. q = (VI + VR)²…

A: To get which function has what type of scale we will scaled up the factors of production by 2 to…

Q: The long-run is a period of time long enough so that all inputs, including facility and equipment,…

A: PLEASE FIND THE ANSWER BELOW.

Q: A firm called Anonymous of Toronto makes corrugated cardboard boxes. It decides to increases all of…

A: The firms, and businesses in an economy tend to operate with the motive of earning maximum amount of…

Q: 2-lf you have the following production function Q=f( L,K), answer the following: 1. Is this function…

A: Given: Q=f(L,K)

Q: Why does the difference between AVC and ATC get smaller as Q increases? b)  Why does MC intersect…

A: Since you have asked multiple questions we will answer the first three for you. The average cost…

Q: 8. Which of the following statements is correct in the short run? A. The firm cannot adjust all…

A: Answer The correct answer is 'option A' i.e., The firm cannot adjust all factors of production.…

Q: With reference to returns to scale: a) Explain what is meant by returns to scale. b) Use an isoquant…

A: a) Returns to scale refers to how the output changes as the input changes. There are three types of…

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 production functions exhibit(s) constant returns to scale? I. Q= KL K+L II. Q…

A: Given:  There are three production functions: 1. Q=KLK+L2. Q=2K+L3. Q=K0.8L0.2

Q: A 15 per cent increase in all inputs leads to only a 5 per cent increase in the output. Are the…

A: Percentage increase in input results to a less than proportionate increase in output is the known as…

Q: Why do Economies of Scale Occur? A. Large firms cover their fixed costs by producing lots of units…

A: Fixed cost is constant and remains same at all levels of output. Average cost refers to total cost…

Q: Which of the following production functions exhibits decreasing returns to scale? A) Q=K^1/2 L^1/2…

A: Returns to scale are used to describe how production scale changes when all the factors of…

Q: Does a relationship exist between increasing returns to scale and long-run average cost? Ex with the…

A: Economies of scale or increasing returns to scale are utilized conversely; both implies to a fall in…

Q: If a firm quadruples (4x) in size and output triples(3x), what is the returns to scale?  a.…

A: The markets are the place where the buyers, and the sellers of the goods, services, and other…

Q: UESTION ONE   1.1 Discuss the relationship between the three short-run total cost curves. Use a…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Long-run total cost (dollars) Quantity 20 100 40 160 60 180 80 190 The cost data in the above table…

A: Economies of scale are cost advantages that the company enjoys in the form of decrease in average…

Q: What is a production function? Response option group It is the production technology It is the…

A: A production function highlights the relationship between quantities of physical inputs and…

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: Show whether the following production functions exhibit decreasing returns to scale (DRS), constant…

A: Production function shows the output produced in an economy by using the available factors of…

Q: Economics Long run average cost is increasing in economies of scale? 1) True 2) False

A: There are two type of scale in business or firm , economies and diseconomies of scale here we can…

Q: Suppose a firm produces cars and the minimum efficient scale is 2,000,000 cars. The inputs are labor…

A: LRAC refers to long run average cost and SRAC refers to short run average cost. Long run average…

Q: A firm has economies of scale, it must have increasing returns to scale. Explain?

A: Economies of scale are cost advantages experienced by firms when production becomes efficient.…

Q: When a firm doubles its inputs and finds that its output has more than doubled, this is known as а.…

A: Inputs and output are important for business. Inputs are raw materials, equipment, and machinery…

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

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…

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

A: Average Price The total cost is divided by the number of things produced to get the average cost.…

Q: Why does the marginal cost of production typically increase as the amount of output produced…

A: Marginal cost is the additional cost incurred to produce an additional unit of output.

Q: What factors give rise to increasing returns to scale and decreasing returns to scale?

A: Increasing returns to scale means when all inputs are increased, the output is increased by more…

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: Economics students often confuse (a) diminishing returns related to the variable factors of…

A: The return to scale and economies of scale are two different concepts.  The law of diminishing…

Q: which of the following statements about the short-run production is true   A. Total product starts…

A: We have to find true statement of short run production function.

Q: Expalin the law of diminishing returns or diseconomies of scales ?

A: In an economy, the law of diminishing returns and diseconomies of scale are two different concepts,…

Q: a) What is the Long-run cost function if the production function is q = L+ K ? b) Many marginal cost…

A: MARGINAL COST CURVE: A graph that depicts the link between a firm's incremental cost within the…

Q: hi  Suppose you build bird houses. One day, you double the time you spend building and double the…

A: Consider the definition of returns to scale. When we change all factors of production by a certain…

Q: Question 3 If a firm's production exhibits diseconomies of scale then which of the following is…

A: Option D

Q: Define economies of scale

A: Economy of scale is a microeconomic term used as an important element of productivity growth.…

Q: Production Point Capital (K)  Labor (L) Output (Q) A 1 1 2 B 2 2   C 1 3   D 2 4   E 1 5   F 2 6   G…

A: Returns to scale can be classified into three categories; 1- Increasing returns to scale (IRS) 2-…

Q: A_15, When returns to scale are decreasing, total output a. Increases b. Decreases c. Does not…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 1.Examples of diseconomies of scale in a firm 2.Examples of benefit of a firm from diseconomies of…

A: Diseconomies of scale is a long run concept which explains the loss to the firm due to an increase…

Q: What is the distinction between the laws and of returns and the returns to scale?

A:

Q: Question 5 Which of the following production functions exhibit increasing return to scale?…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A firm hires two workers and rents 15 acres of land for a season.It produces 150000 bushels of…

A: Here, it is given that, Initial production: 150000 bushels of crop Final production after doubling…