In choosing a production technology, how will firms react if one input becomes relatively more expensive?

Q: If a technological advance increases a firm's labor productivity, we would expect the firm's:…

A: If a technological advance increases a firm's labor productivity, we might expect its: average total…

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: How can we predict cost behavior?

A: Cost behaviour shows the relation between the total cost and activities level. We can predict the…

Q: Can you differentiate which is the best and which is the worst between Constant Cost Condition,…

A: In a perfectly competitive market, the long-run industry supply curve explains the relationship…

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: If marginal physical product is continually declining, what does marginal cost look like?

A: The marginal physical product is the additional output which can be produced by the firm by…

Q: What is a average total cost? : What is a Marginal cost?

A: The average total cost is the total cost per unit of output. It is calculated by dividing the total…

Q: When a firm is using a technically efficient input combination, the firm is also producing in an…

A: False statement

Q: A few sentences for the response please. How does the impact of fixed costs change production…

A: Fixed costs are amount of dollars expended on fixed factors of production such as land, building,…

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: The most efficient scale of production of a firm is where

A: To find : Which is most effective case of efficient scale of production.

Q: What is the Difference between Fixed Costs, Variable Costs, and Marginal Costs?

A: Fixed cost: Fixed costs are those costs that remain fixed for every unit of output produced. It does…

Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…

A: Given,  Superconductors play a vital role in the manufacturing of machines. They are found in each…

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: Is it true the statement that if average production cost is increasing, a firm’s technology exhibits…

A: In a two factor production function, the scale of production refers to the quantity of labour and…

Q: Consider the marginal cost curve associated with cleaning your dorm room. Label the vertical axis…

A: Marginal cost is addition to the total cost caused by producing one more unit of output.

Q: Assume the average cost when producing 4 units is 10, the average cost of producing 6 units is 8,…

A: The table shows output and AC:

Q: What does average fixed cost fall with increase in output?

A: Fixed cost per unit of output is known as average fixed cost. Because the same amount of fixed costs…

Q: The most efficient scale of production is where at which point?

A: According to the given question In simple words we can say that scale of production basically or…

Q: Define the term Manufacturing Costs?

A: Cost is the monetary value expended by a company to produce goods and services and to carry out its…

Q: What are a total variable cost and average variable cost?

A: Total Variable costs are those costs that change when the input changes. For example-wages, when…

Q: How does rising organic composition of capital threaten the rate of profit?

A: Historically, there have been a lot of economic theories stating the requirements for the…

Q: Microeconomics divides costs in to “short-run costs” and “long-run costs”. Can “long-run” differ…

A: The short run is defined as the time frame during which wages and prices of other production inputs…

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: Contrast the concepts diminishing marginal productivity and decreasing returns to scale with…

A: Diminishing Marginal Productivity means with every additional input employed in the production…

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

A: Economies of scale- It is the cost advantage experienced by companies when production is efficient…

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: If marginal cost is less than average cost, average cost must fall when more units are produced.…

A: The marginal cost is change in total output when one additional unit of input is used.

Q: What is capital and labour intensive production technique

A: Production technique refers to the process through which the goods and services are produced by the…

Q: Average fixed cost, average total cost a -Why does average fixed cost continuously fall as output…

A: Average fixed cost- It is the cost that is per unit of Total fixed cost. AFC=TFCQ Average total…

Q: If production increases, what happens to average variable cost (AVC), does it increase only,…

A:

Q: Explain the relationship between the average cost and the marginal cost?

A:

Q: Microeconomics - Production Function Find the returns to scale of the following production…

A: In order to find the returns to scale of the production function , We put a constant before every…

Q: Define economies of scale and explain why they mightarise

A: Economics of scale are the result of production efficiency. It can be a reason for a larges firms to…

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: Describe the unit-of-production method?

A: Answer -  Unit of Production method - It is method which help to calculate depreciation of value of…

Q: Is fixed cost always smaller than total cost ?

A: The question talks about the two terms i.e., fixed cost and total cost.

Q: What is theoretical relationship between Marginal Cost and Average cost

A: Costs refer to the amount of money that the firms need to give up in order to perform certain…

Q: Why does INCREASING COST CONDITION is the best while DECREASING COST CONDITION is worst?

A: Total cost: The term total cost encompasses fixed costs and variable costs. here, the fixed cost…