Indicate how each of the following would shift the (1) marginal- cost curve, (2) average-variable-cost curve, (3) average- fixed-cost curve, and (4) average-total-cost curve of a manufacturing firm. In each case, specify the direction of the shift. A reduction in business property taxes.

Q: Use the table below to answer the following question. Units of Output Total Fixed Cost Total…

A: Marginal cost is the change in total cost due to per unit change in production. MC cuts AC curve and…

Q: The average fixed cost curve will never Intersect with either the horizontal vertical axis

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which of the following statements is false?     a. The long-run average-total-cost curve does not…

A: Total cost

Q: Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in…

A: Average total cost (ATC) is the equivalent of total fixed cost (TFC) and total variable costs (TVC)…

Q: Which of the following statements best represents a difference between short-run and long-run cost?…

A: In the production function, different inputs are used to produce the final output. Each input has…

Q: The statements and equations show various ways of defining average variable cost, marginal cost, and…

A: Average Variable cost refers to the variable cost per unit. It can be calculated as follows: In…

Q: Economies to scale refer to Select one: a. the point at which marginal cost equals average cost.…

A: "Long-run average cost curve is used to determine the scale of production process."

Q: A firm with only fixed costs will have which of the following average cost relationships? As…

A: Average Total Cost is calculated by dividing the total cost with units of output. Average Cost =…

Q: Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to…

A: The total production process of a firm/company is an amalgamation of various costs, the optimum…

Q: Order the following components of a long run average cost curve as output expands based on which…

A: In the long-run, an average cost curve shows different phases of production when average cost…

Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Copy the table below into your answer booklet and fill in the missing figures: output total cost…

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

Q: QUESTION 4 Match each of the following terms and descriptions Average Fixed Cost Average Total Cost…

A: Providinf full. Solution.

Q: The average fixed cost curve will never intersect with either the horizontal or vertical axis. There…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: What is difference between fixed and variable cost in short run? How does this result in the classic…

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

Q: Assume that the marginal cost of production is increasing. Can you determine whether the average…

A: AVC is the cost which is measured by dividing average cost by the quantity of output produced.  MC…

Q: When the production function exhibits _________ returns to scale, the long-run average cost curve…

A: Economies of scale:   The economies of scale are the cost-benefit that the firm achieves by…

Q: Which of the following would increase a firm's average total costs? economies of scale an increase…

A: Average Total Cost: The average total cost (ATC) is the per-unit cost of producing goods and…

Q: Evaluate the view that the main goal of firms will always be cost minimization.  You are interested…

A: 1) The main goal of the firm is cost minimization. This is because if the firm minimises the cost,…

Q: Which of the following must be falling when the short run marginal cost is less than it, and rising…

A: Total Cost is the sum of the Total Variable Cost and Total Fixed cost of any firm. Total Fixed is…

Q: The average variable cost curve and average total cost curve tend to converge as output rises…

A: ATC = TC/Q AFC = TFC/Q AVC = TVC/Q   TC = TFC + TVC TFC = TC – TVC AFC = AC - AVC

Q: QUESTION 3 Match each of the following terms and descriptions Fixed Cost Total Cost A. fixed cost…

A: Fixed cost is that cost which are not changed as output changed its remains constant. That means if…

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: The marginal cost curve intersects the minimum point of both the average total cost curve and the…

A: The following are the definitions of the terms asked in the above questions. The marginal cost is…

Q: 21

A: Short run production function means where only one factor is variable in nature and other factor…

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

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…

Q: ($/Unit) Marginal Cost Q1 Quantity (Units per time period) A) In the above diagram, marginal cost…

A: There is inverse relationship between marginal cost and marginal product due to applicability of law…

Q: Which of the following best describes economies of scale? O They refer to the increase in output…

A: In the short run atleast one input is fixed and in the long run all inputs are variable.

Q: The upward sloping portion of a long-run average cost curve illustrates diseconomies of scale.…

A: Economies of scale refer to the production gets cheaper when more and more units are produced (up to…

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

A: Variable costs are the costs which change with the change in the quantity of the good or service…

Q: The economies-of-scale curve is a long-run average cost curve, because       it allows all factors…

A: Basics:- Short run:- It is a period of time in which fixed cost remains constant because all factors…

Q: When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: The table below represents incomplete information on the short-run production costs for a firm,…

A: Cost refers to the monetary payment made by a business in order to produce any good or service. It…

Q: Which of the following statements is a reflection of the fact that the average fixed cost falls as…

A: Total cost (TC) is the sum of fixed cost (FC) and variable cost (VC). i.e., TC = FC + VC…

Q: Which of the following statements is TRUE?     The marginal product and average product curves…

A: The Marginal Product (MP) refers to the addition made to Total product at each level of output. The…

Q: At quantities less than the long-run minimum cost per unit of output, the long run average total…

A: At quantities less than the long-run minimum cost per unit of output that is quantities less than Q…

Q: The portion of a long run average cost curve that is downward sloping is called the range of: Group…

A: The long-run average cost curve is the cost curve which helps to analyze the cost function of the…

Q: The following table describes the various least cost combinations of two inputs from various…

A: Iso quant shows the different possibil combinations of inputs that give same level of output . And…

Q: In the following table, indicate whether the long-run average cost curve exhibits economies of…

A: (a) Ike’s Bikes is currently producing 450 bikes per month in its only factory. From the table, it…

Q: Question 3. Refer to the information provided in the following figure, If this firm's cost of…

A: Isocost line represents the different combinations of factors of production a firm can afford to…

Q: Provide a diagram that illustrates, for the short-run analysis, the average cost function, the…

A: The firms, and businesses operate with the motive of enhancing their profits, and minimizing their…

Q: Use the table below to answer the following question. Units Total Fixed Cost Total Variable of…

A: In the short run, a firm will have two types of cost: fixed cost and variable cost. Total fixed cost…

Q: Assuming decreasing returns to scale, illustrate the long run average cost curve under the following…

A: There are basically two types of economies, real economies and pecuniary economies.

Q: The shape of a firm’s long-run average cost curve depends on how costs vary with the scale of…

A: There are 2 types of cost will occur by any enterprises, 1. Fixed Cost. 2. Variable cost. Fixed will…

Q: Marginal cost can be calculated both from total cost and total variable cost and is not affected by…

A: According to the given question The marginal cost is basically or initially considered as the slope…

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

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

Q: Distinguish between economies of scale and constant returns to scale. What shape will the long-run…

A: Economies of scale – A downward sloping LARC (Long run average cost curve)The constant return to…