Q.2. (a) Define economies of scale and explain why they might arise. Define diseconomies of scale and explain why they might arise. Also draw the long run average total cost curve to explain the economies and diseconomies of scale.    (b) Show the relationship between Marginal cost and Average total cost curve for a typical firm.

Q: Question 22.22.   The following cost data are for a firm in the short run:  Output  Total Cost 0…

A: The average variable cost (AVC) is the total variable costs per unit of output. Thus, AVC=TVCQ Where…

Q: Suppose a shoes factory makes 100 pairs of shoes. At this level of production, they have $25 in…

A: Output(Q)=100 units AVC(Q=100)=$25 ATC(Q=100)=$32 TFC(Q=100)=? We know that: Average Fixed Cost is…

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

A: Answer to the question is as follows:

Q: What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b. Returns to…

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: Average total cost, average variable cost marginal cost and marginal product b. The relationship…

A: Average Total Cost or Average Cost is the total cost (TC) divided by the number of units produced…

Q: Solve the attachment.

A: The firms incur costs as per their production processes and other requirements to maintain and make…

Q: If a store owner increases the size of his store producing more quantities of his product, and…

A:

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

A: Part (a) Economies of scale arises when the long run average total cost curve declines as output…

Q: Discuss some of the difficulties encountered in applying these economic concepts in practical…

A: The fixed cost is the cost which remains the same even when the firm produces nothing as output.…

Q: 1. Economies of Scale Consider the following table of long-run total costs for three different…

A: PLEASE FIND THE ANSWER BELOW.

Q: 3. What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b.…

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: ATC B. Output 15. In the above long-run average total cost curve the: A) movement from A to B…

A: Long run average cost curve represents least average cost to produce any given level of output. In…

Q: Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 4 5 6…

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

Q: Explain and identify the relationship between total cost, average cost and marginal cost using…

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

Q: Question 3 A firm's cost function is given by c(Q) = 450 + 2Q2. Thus, MC(Q) = , AC(Q) = Average…

A: Average cost is the ratio of total cost over total quantity while marginal cost is the first…

Q: With appropriate examples, distinguish between (i) short run and long run (ii) fixed cost and…

A: The most important aspect in the business firms is the time period and the production amount as well…

Q: 1. Economies of Scale Consider the following table of long-run total costs for three different…

A: When more units of an item or service can be produced on a bigger scale with (on average) lower…

Q: Question 18 The upward sloping portion of a long-run cost curve illustrates: Diminishing marginal…

A:

Q: Refer to Figure 1. Which of the short-run average cost curves correctly depict economies to scale?…

A: Long-run average cost The long-run average cost is tangent to the falling portion of the short-run…

Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC =…

A: There occurs economies of scale when average cost decreases with increase in production,…

Q: You are interested in starting a used car dealership in your country. Provide examples with…

A: Answer 1 :

Q: Answer the question of the production cost as follows: 1.1  Based on Table below, calculate average…

A: You have posted multiple question, as per guidelines we will solve one question at a time.  Given…

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

A: Average cost is the sum of average fixed cost an average variable cost. It is a U-shaped curve.

Q: With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50.…

A: Given:  Total Fixed Cost = 400. Average Total Cost = $3 Average Variable Cost = $2.50

Q: Construct the cost schedule using the data. below for a firm operating in the short run.   Graph…

A: Total cost is the sum of all the cost that incurred by a firm in order to produce output. The…

Q: Marginal Cost (dollars) Units of Variable Total Cost Output Cost (dollars) (dollars) 0. 60 45 105 45…

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

Q: The publisher of a new book figures fixed costs at $92,000 and variable costs at $2.10 for each book…

A: At the breakeven level of production, the firm will be exactly covering its total cost with the…

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: Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 4 5 6…

A: The table here shows the following below:

Q: Please give 2 examples of economies of scale, diseconomies of scale, and constant returns of scale.…

A: Return to scale is a long run concept, which measures the change in total output due to the change…

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

A: The cost of the firm when producing output would be the cost incurred by the firms on the factors of…

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: Question 3 Discuss the relationship between Long-Run Average Cost and Short-Run Average Cost for a…

A: The short run average cost would result in the change in the cost with the change in output in the…

Q: Distinguish between short-run and long-run production decisions and illustrate their impact on costs…

A: Average cost is total cost divided by total production while marginal cost is the change in total…

Q: Scott owns a law-enforcement training operation in Boise, Idaho. He employs three trainers. The last…

A: Scott's total cost increased by $466 because of hiring the last trainer who brought in one new…

Q: The most desirable output quantity for the firm clearly depends on how costs change as output…

A: Cost benefit analysis is very important to know whether production is need to shutdown or increase…

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: If Farmer Jones plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he…

A: Given the number of bushels produced with seed bags, the following would be the production curve.…

Q: The unlabeled red curves in this figure derive their shapes from:   a. decreasing, then increasing,…

A: The long run average cost is an envelope around all the short run average cost curves. So, the long…

Q: Explain the difference between economies and diseconomies of scale. Provide examples of when an…

A: Economies of scale occurs when the long run total average cost would reduce as the number of units…

Q: Question 22.22  The following cost data are for a firm in the short run:  Output  Total Cost 0 $400…

A: Average variable cost is the total variable cost per unit of output produce by a producer or firm.…

Q: Marginal cost _1. The additional cost from an additional unit of output produced. Production…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…