In detail, What is one example of a non-linear cost function and explain what factors cause the non-linearity.

Q: his refers to the ratio of a small increment of cost and a small increment of output. a. Increment…

A: Below is the formula for marginal cost:

Q: Define the term semi-variable costs?

A: The costs incurred by a producing agent in the procurement of factor inputs for the production of a…

Q: Graphically show the relationship between the average total cost, variable cost and marginal cost…

A: Below are the formulas: AVC=TVCQATC=TCQMC=TCn-TCn-1 Where, AVC = Average variable cost TVC= Total…

Q: Someday, if you want to be an economist or to study  more about economic analysis, what platform you…

A: While studying economics, economists have the capability to reduce costs while using different…

Q: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: increasing, decreasing, or constant returns to scale.

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Least Cost Method: *Remember the least cost method is a lot like the utility maximizing rule from…

A: The production will be efficient when the factors are used up to a point where the ratio of marginal…

Q: If both the fixed and variable costs associated with a product decrease, what will be the effect on…

A: The breakeven point is determined by partitioning the fixed costs of production by the cost per unit…

Q: Find the cost function for the marginal cost and fixed cost. Marginal Cost Fixed Cost (x = 0) dC…

A: Marginal cost: Marginal cost can be defined as the cost that is incurred on the production of an…

Q: What is the difference between economies of scope and scale. Also include in your discussion some…

A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…

Q: QUESTION Sahar is analyzing the probability to open her own beauty salon. If she chooses to operate…

A: Answer - Given in the question - Rent = Rs 70,000 PM  salary of staff = RS 30,000 pm  Earning = RS…

Q: Which of the following is an example of a Variable Cost? A. an employee who makes $40,000 a year B.…

A: Fixed cost is the cost that remain same at all levels of output. Variable cost is the cost the…

Q: A local non-profit group prints a weekly newsletter. Professional typists earn $10 per hour and can…

A: Assumptions:- Group of answer choices 5 pros + 0 volunteers ; $0 lunch and driving 0 pros + 10…

Q: Explain the term Total costs?

A: Any firm main objective is to maximize its profit and for maximizing profits every firm must know…

Q: A Closer Look in the Economies of Scale   Businesses wanted to reduce their cost to the minimum…

A: Companies benefit from economies of scale when their production gets more efficient. Economies of…

Q: (2) Minimize the average cost for the following total cost function (TC) by finding out (a) average…

A: Since you have asked a question with multiple subparts, we will solve the first three subparts for…

Q: How can we determine the Cost Basis?

A: Calculation of the cost basis of an investment shows the capital gain or loss on it. It indicates…

Q: What is meant by a sunk cost? Give typical sunk costs for an IT project.

A: Sunk costs are a type of fixed costs and they do not change irrespective of the levels of…

Q: If the fixed input is the two hectare of land and the variable input is fertilizer explain how the…

A: The law of diminishing marginal utility states that when an individual absorbs an object or a good,…

Q: Each of Davisson's production managers (annual salary cost, $45,000) can oversee 60,000 machine…

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

Q: q3- The average total cost curve is increasing when marginal cost is:   Select one: a.…

A: The relationship between ATC and MC is: When the MC curve is above the ATC curve then the ATC…

Q: Which of the following does NOT represent a fırm's explicit costs? O the firm's total accounting…

A: Explicit cost is the actual monetary expenditure to run a business Implicit cost is the opportunity…

Q: Identify each of the following costs associated with owning an automobile as direct (D) or indirect…

A: The costs involved in the production of a good or service are direct and indirect costs. A direct…

Q: What are their implications for cost and return?

A: The method of directing capital among savers to organizations that require it is known as finance.

Q: ips is described in the table that follows -m's fixed costs equal $10,000 per day. Ca e average…

A: Computation with the help of following formula, AVC = VC/O ATC = TC/O AFC = FC/O VC = TC-FC…

Q: Define the term Cost Reduction?

A: Cost reduction is the mechanism that businesses use to cut costs and increase profits.

Q: Siven the production function Q = L0.75 K0.25 . If the fixed quantity of capital in the short run is…

A: In the short run, the production function is assumed to have a fixed capital. So, if a firm uses two…

Q: Which of the following cost behavior assumptions is false? (You may select morethan one answer.)a.…

A: The cost behavior assumption “variable cost per unit increases as the activity increases” is a false…

Q: What is the average variable cost of producing 400 units of output?

A: Answer: Given that:      Labor  Output   Marginal Cost  Variable Cost  Fixed Cost  0  0    0  5…

Q: Define fixed and variable costs and give examples of each in manufacturing. What is total cost,and…

A: Cost is something that, depending on its type, can be categorized in many ways. Classification…

Q: True or False The average total cost cannot equal marginal cost.

A: Average total cost It refers to the total cost per unit of production. ATC = TC/Q where ATC is…

Q: List some practical limits to economies of scale; that is, when should a plant stop growing?

A: Economy of scale is the improvement that a company acquires from the size or scale of manufacturing.

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: Total Cost = C(x) = 0,005x^3 - 0,49x Lnx +5x Find : a. Average Cost Function b. Average Cost…

A: Average cost (AC) = C(x) / x AC = 0.005x2 - 0.49 Lnx + 5

Q: Explicit cost = $100 Implicit cost = $163 Total cost = ?

A: Generally in the question, Explicit cost value is = $100 Implicit cost value = $163 We need to find…

Q: While drawing cost curves, the state of technology must be kept constant True/False

A: # Cost curve is drawn taking into use th fixed cost of the firm and the variable cost incurred by…

Q: The average fixed cost curve is labeled: a L b. II. C. III d. IV

A: Average fixed cost is the cost of fixed assets of the firm like building, land, furniture,…

Q: Compare and contrast economies of scale and economies of scope. Give an example of each from your…

A: Introduction Economies of scale: Economies of scale occur when the quantity of goods increases and…

Q: d. Show that the cost function is non-decreasing in w,r and q.

A: Cost function is non- decreasing in w, r and q

Q: The variable cost per unit varies with output, whereas the fixed cost per unit is constant." Do you…

A: Total variable cost (TVC) is the total cost component that changes with a change in output, so AVC =…

Q: Marginal variable costs and marginal total costs are the same. True False

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Costs curves can shift. If a firm negotiates a new labor contract with its workers to raise wages,…

A: With the increase in wages , the cost curve will rise to show the higher cost .

Q: Which of the following describes an implicit cost? NO opportunity cost is involved. NO outlay of…

A: Cost can be of two types, explicit cost and implicit cost.