Please give 2 examples of economies of scale, diseconomies of scale, and constant returns of scale. Provide explanations

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: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: Adam Smith is considered the father of economics. He was the first individual to notice that as long…

Q: 3. Consider the following production function: q = 2L +3/K Assume K = 16, derive the marginal…

A: production-function gives us the maximum output that can be achieved with various…

Q: What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies…

A: Answer - Need to find- What does the long run Average cost curve imply when it is horizontal…

Q: Which of the following is true?

A: The long-run average cost curve represents the least average cost to produce any given level of…

Q: Cost schedule Labor Output (units per day) Total variable costs Total costs (workers) (dollars)…

A: Given:  Cost schedule is given, where labor, output, total variable cost and total costs are…

Q: Which of the following statements is entirely correct? OBoth economies of scale and diminishing…

A: Economics of scale refers to impact on the total output if all the input factors are changed. While…

Q: Quantity 1 2 4 5 6 7 Firm A 30 60 90 120 150 Firm B 75 85 90 95 100 Firm C 40 65 90 115 140 170…

A: Economies of scale are the benefits that, in some cases, can happen because of expanding the size of…

Q: explain with graphs the difference between economies of scale, economies of scope and returns to…

A: Economies of Scale  An economy of scale is the expense advantage an organization has with the…

Q: In the long-run, a company that produces and sells popcorn incurs total costs of $1,350 when output…

A: Economies of scale occur when the average total cost (ATC) decreases as output increases in the long…

Q: Define and explain the difference between economics of scale and economies of scope. Include an…

A: Definition: Economies of scale are cost-saving strategies in a production process by increasing the…

Q: How would the scale economies determine the shape of the long run Average cost curve(LAC) What are…

A: Economies of scale refers to a situation in which as the level of output for a firm increases, its…

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale is situation when producing more quantity of goods , the unit cost of…

Q: 16. If a firm increases both its plant and labor by the same pa the firm is experiencing A.…

A: The changes in long-run average cost with respect to output decide whether the firm is experiencing…

Q: ing to the long-run average cost cur

A: The cost of per unit output is known as the average cost. It directly depends on returns which…

Q: When the average cost of producing each individual unit declines as total output increases is…

A: Production function shows the relationship between inputs and output. It reflects how changes in…

Q: Explain the difference between economies of scale and economies of scope with an example.

A: Answer to the question is as follows:

Q: Explain the difference between economies of scale and economies of scope with an example.  Please…

A: Answer: Economies of scale: When a firm's average cost of production decreases due to an increase in…

Q: does the isoquant map look like if there are 1)continuously increasing returns to scale;…

A: The return to scale can be shown diagrammatically on a development way "by the distance between…

Q: Consider the following long-run isoquants and inputs. In which case(s) is there increasing returns…

A: Increasing return to scale means output increases more than the increase in inputs…

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: 8. Engineers sometimes rely on the "0.6 rule," which states that the increase in cost is given by…

A: "0.6" Rule states that increase in capacities of equipment  leads to less than one to one increase…

Q: which are two (2) sources of internal economies of scale for a business organization, please…

A: A microeconomic concept that relates to elements that lower production costs while increasing output…

Q: 4. Questions and Diseconomies of scale The law of diminishing marginal returns erence between the…

A: Law of diminishing marginal return applies to short run where at least one factor is fixed

Q: 2. Derive the long run average total cost curve and show minimum efficient scale on it.

A: Total Cost curve(TC) is the cost that is incurred in the production of goods in firms. It consists…

Q: to Scale and Economies of Scale uahon in whien output doubles when all inputs ae lovlored. > Can a…

A: Return to scale show the long-run production function where it can be increasing, decreasing, and…

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

A: Answer - Need to find - The statement is true or false Given in the question - If a firm has…

Q: d. Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns…

A: Diseconomies of scale is occurs when the per unit cost of output increases as output level increases…

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale takes place when there is reduction in the cost of production with the…

Q: Which of the following events would contribute to economies of scale? O Large supermarkets being…

A: Economies of scale refers to decrease in average cost as production increases.

Q: Which of the following statements are true regarding the concept of returns to scale? [Check all…

A: Let production function  Q = F(L, K) Double the inputs by a scalar z > 0. Q = F(zL, zK) If F(zl,…

Q: Refer to the table below. The table shows Long-Run Total Costs Quantity 1 2 4 6 7 Firm 1 $180 $280…

A:

Q: What are diseconomies of​ scale? Diseconomies of scale is   A. when the marginal product of labor is…

A: Answer: Correct option: option D Explanation: Diseconomies of scale: when an increase in a firm’s…

Q: AVERAGE TOTAL COST (Dollars per bike) 640 560 480 400 320 240 160 80 0 0 100 200 300 400 QUANTITY…

A: Short-run is such a period in which at least one of the factors of production is fixed whereas the…

Q: c) Show that the following production function exhibits increasing returns to scale Q = 20K*L² Where…

A: Returns to scale is a long-run concept, during this time interval both the capital and labor can be…

Q: ased on your own personal observations of the college, do you think the low-income Community College…

A: Economies of scale refer to a situation where the already existing firm/ organization/ institution…

Q: QUESTION 25 Which of the following production functions exhibits constant returns to scale? OA Y=KL…

A:

Q: The term "constant returns to scale" describes a situation where expanding all inputs dramatically…

A: Returns to scale(RTS) is a concept that tells how the total output(Y) changes when all the factors…

Q: Critically demonstrate the key difference between the two economies of scale.

A: Economies of scale are the cost advantages that businesses gain as a result of their size, and are…

Q: 1. Evaluate the view that the main goal of firms will always be cost minimization.

A: Note: Only first question is answered since the exact one wasn’t specified, if you want answers for…

Q: Let's assume that in Ventura, a toaster company was manufacturing 3,000 units of toasters at the…

A: Introduction Economies of scale means that as a producer increases the quantity produced/output, the…

Q: The behavior of long run average cost determines what is known economies of scale, constant return…

A: The long-run average cost shows the cost of producing per unit of output in the long-run. The…

Q: 10. Explain why economies of scale is important

A: Economies of scale: It refers to the reduced cost per unit of output of a commodity because of the…

Q: Economies of scale occur when the long run total cost is decreasing the long run total cost is…

A: In a market, organizations may face all the three faces of cost, such as increasing, decreasing or…

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.