Refer to the to graph on the right. Which level of output in thegraph below represents the minimum efficient scale?OA 1,000 booksB. 20,000 booksC. 40,000 books$22 00D. 80,000 books20.0018.00Which size bookstore is more likely to expenencediseconomies of scale?Long-nunAverage costO A. Abookstore selling 1.000 books per monthB. A bookstore seling 20,000 books per monthC. Abockstore selling 40,000 books per month40,00.000OD. A bookstore seling 80 000 books per month1,000 20,000Quantry of books sold per month

Reler to the to graph on the nght Which level of ouput in the gnph below represents the minimum efficent scale? OA 1000 books OR20,000 books OC 40,000 books $22 o D. 80000 books 20 00 18.00 Which sue bookstore s more likely to experence dseconomes of scale Long-nn Averge c OA Abookstore seling 1.000 books per month OB Abockstore seling 20,000 books per month OC Abockstore salling 40,000 books per month OD. Abockstore seling 80 000 books per month 1,000 20 000 Tof book

Reler to the to graph on the nght Which level of ouput in the gnph below represents the minimum efficent scale? OA 1000 books OR20,000 books OC 40,000 books $22 o D. 80000 books 20 00 18.00 Which sue bookstore s more likely to experence dseconomes of scale Long-nn Averge c OA Abookstore seling 1.000 books per month OB Abockstore seling 20,000 books per month OC Abockstore salling 40,000 books per month OD. Abockstore seling 80 000 books per month 1,000 20 000 Tof book

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 6CQQ

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Similar questions

In choosing a production technology, how will firms react if one input becomes relatively more expensive?
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A. Complete the table below Quantity TC TVC AFC ATC MC AVC 1 200 2 100 3 20 4 240 5 24 6 660 160 B. Using the table indicate if the firm has i. diseconomies of scale ii. economies of scale or iii.constant returns to scale over the entire rangeof output. Explain your answer Quantity (Units of output) 1 2 3 4 5 6 7 Firm A 60 70 80 90 100 110 120 Firm B 11 24 39 56 75 96 119 Firm C 21 34 49 66 85 106 129 C.Evaluate the view that the main goal of firms will always be cost minimization.
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Please complete the below table. Output TotalFixed Cost TotalVariable TotalCost AverageFixed AverageVariable AverageTotal cost MarginalCost 0 20 1 10 2 6 3 24 4 13.5 5 66 6 14 7 76 8 114
. Jane’s Juice Bar has the following cost schedules:Quantity Variable Cost Total Cost0 vats of juice $ 0 $ 301 10 402 25 553 45 754 70 1005 100 1306 135 165a. Calculate average variable cost, average total cost,and marginal cost for each quantity.b. Graph all three curves. What is the relationshipbetween the marginal-cost curve and theaverage-total-cost curve? Between the marginalcost curve and the average-variable-cost curve?Explain.
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(Cups of tea per hour) Total Cost in Rs. 0 30 1 33 2 38 3 45 4 54 5 65 6 78 7 93 8 110 9 129 10 150 If Yasir’s fixed cost is Rs. 30 Calculate variable cost, average fixed cost, average variable cost, average total cost, and marginal cost. What is the efficient scale of Yasir’s tea stall? iii. Graph the curves for total cost, ATC, AVC, AFC, MC. Explain shape of these curves and the relationship between ATC and MC. Over time Yasir decides to expand his business. In the long run he first experiences economies of scale, followed by constant returns to scale and finally diseconomies of scale as the output increases. Draw a diagram of his ATC in the short run and the long run. Explain this diagram in detail.