Long-run average total cost (Multiple Choices )     might have an upward-sloping segment that indicates dis-economies of scale     has a minimum point at the firm's minimum efficient scale     shows the minimum average total cost for each level of output that can be produced     might have a downward-sloping segment that indicates economies of scale     might have a flat portion that indicates a constant average cost over that range of output.

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: Rising short-run average variable costs of production for a firm indicate that   Question 4 options:…

A: Average variable costs are the costs incurred on variable factors or inputs per unit of output. The…

Q: short-run with a fixed amount of at least one input, the Law of Diminishing Returns must apply,…

A: The law of deminishing marginal returns is one of the key standards of financial matters and is…

Q: Marginal cost is the:  rate of change in total fixed cost that results from producing one more unit…

A: Marginal cost by definition is the cost incurred for producing an extra unit of the good or…

Q: The MC curve must be * rising when TC is rising. less than AFC when the average cost is rising.…

A: Every production unit incurs certain amount of costs during production processes. These costs are…

Q: Fixed costs differ from sunk costs in that a firm can avoid fixed costs by not producing anything

A: Avoidable costs are costs that do not occur if the activity is not performed. For example, supply…

Q: Assume a standard marginal cost curve and average cost curve for firms producing cellular phones.…

A: Points to be considered: * Technological advancement increases the production/output. * MC and AC…

Q: Diseconomies of scale occur when:A) average total cost increases as output increases.B) average…

A: The process of production is the combining of the raw materials and the skills and knowledge of the…

Q: (Explicit and Implicit Costs) Amos McCoy is currently raising corn on his 100-acre farm and earning…

A: Given: Total revenue = 100 Cost (Explicit+Implicit) = 200

Q: The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the…

A: Marginal cost: Minimal expense speaks to the gradual costs brought about while creating extra units…

Q: Economies and diseconomies of scale explain: Group of answer choices the profit-maximizing level of…

A: Economies of scale are the point at which the expense per unit of creation (Average expense)…

Q: Businesses wanted to reduce their cost to the minimum without compromising the product quality and…

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

Q: When diseconomies of scale occur: Multiple Choice C marginal cost intersects average total cost. the…

A: Whether the firm is having economies of scale or diseconomies of scale depends upon the long run…

Q: Normal profits are Multiple Choice   the profits reported by accountants on a firm's annual…

A: ANS Profit is given by subtracting Total Cost (TC) from Total Revenue (TR). Mathematically it is…

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: Economies of ______ occur when a single firm can produce two products for a lower total cost than…

A: Economies of scale occur when a single firm can produce two goods for a lower total cost than two…

Q: Short-run average total cost      shows the minimum average total cost for each level of output…

A: Answer: Correct option: option 4 (might have a flat portion that indicates a constant average cost…

Q: A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of…

A: By doubling the inputs that are employed in producing the good, will not increase the variable cost…

Q: 21

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

Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…

A: Marginal cost is the cost of producing an additional unit. With the increase in production, till a…

Q: How does learning by doing affect average total costs? Short-run average total costs will remain…

A: Learning by doing is a process of achieving productivity through practice, innovations, and…

Q: When a firm is experiencing economies of scale, long-run Group of answer choices average total cost…

A: Economies of scale is a situation in economy where the organizations or firms are able to produce…

Q: Using organization's existing under-utilized resources or capabilities (technologies, distribution…

A: The organization's existing under utilised resources  or capabilities result in the efficient…

Q: Implicit costs are Multiple Choice ) the same as economic costs. comprised entirely of actual…

A: When computing the cost associated with a specific task or event, an individual looks into two types…

Q: Which of the following results from bureaucratic red tape, breakdown of top-to-bottom communication,…

A: The Diseconomies of scale are the consequence that occurs because of bureaucratic red tape,…

Q: Refer to Table 8.2. If Sherry produces one pair of earrings, her total variable costs are A) $50.…

A: Total cost of production is the sum of total fixed cost and total variable cost. Total fixed cost is…

Q: The marginal cost curve is generally ______________, because diminishing marginal returns implies…

A: The economic cost compares the benefits and drawbacks of various options. It does this in terms of…

Q: Marginal cost is defined by:  (a)  total cost increases when one more unit is produced. (b)  fixed…

A: Answer - 1. (a) Total Cost increase when more unit is produced.  Reason - Marginal cost is defined…

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: Which of the following is wrong? Select one: a. Economies of scale refer to the production of two or…

A: Long run average cost curve is locus of minimum point of the short run average cost curve.

Q: Which of the following sources of low costs is most popular? Group of answer choices   Economies of…

A: Cost is minimized when large output can be produced with limited resources and available technology.…

Q: Minimum efficient scale for production of a good or service: Select correct one : a) is the point…

A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…

Q: Diseconomies of scale exist over the range of output for which the long-run average cost curve is a.…

A: The firms are considered to be the producers who work with the motive of earning maximum possible…

Q: 3. What are the differences between the internal and external economies of scale?

A: When it increases its level of output, it often experiences some cost advantage, referred to as…

Q: Fixed costs are associated with Multiple Choice   highly adjustable inputs such as labor.   both…

A: Fixed costs are costs that does not change with increase or decrease in production/sales. They are…

Q: The Finger Lakes region in New York State produces wine. The climate favors white wines, but reds…

A: Answer(h) Fixed Cost.

Q: Suppose a firm's long-run average cost is increasing as the firm produces more output. Then the firm…

A: Long-run average total cost is a business metric that represents the average cost per unit of output…

Q: Which of the following statements is true? Costs are always explicit, never implicit. Costs are…

A: Cost is the expenditure incurred by the firm on purchase of factors of production for the production…

Q: The four statements below describe properties of a firm's short run cost curves. Complete the…

A: Average cost is the per unit cost of production. Marginal cost is the additional cost incurred to…

Q: Businesses wanted to reduce their cost to the minimum without compromising the product quality and…

A: Economies of scale:- Economies of scale can be explained as the cost advantages that businesses gain…

Q: When a firm triples its inputs and finds that its output has less than tripled this is known as:…

A: Production function is a definite mathematical relation between factor inputs and output generated,…

Q: Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as…

A: "Diseconomies of scale occurs when each item produced cost more and more as a firm continue to grow…

Q: Firms are facing a lot of challenges when dealing with their costs of production. Analyze a fixed…

A: Fixed cost refers to the cost of production that the firm has to incur irrespective of output. This…

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

A: Note: You have uploaded multiple questions at a time. Hence, we shall answer only the first one for…

Q: The output level at which long-run costs are minimised is known as: (a)  Average fixed cost; (b)…

A: Total cost is the cost incurred by the firm on hiring factors of production to produce the final…

Q: The minimum efficient scale of a firm: Multiple Choice is realized somewhere in the range of…

A: Minimum Efficient scale is a point between economies of scale and diseconomies of scale.

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.