significant economies of scale are present, large firms will be much more efficient producers than small firms.   Is this true

Q: Under what conditions do the following production functions exhibit decreasing, constant, or…

A: In a market, the production function represents the nature of the input resources in terms of their…

Q: Which of the following statements is TRUE? O The average variable cost curve must always be…

A: The addition of fixed and Variable Cost gives us total costs, which when divided by the output give…

Q: Explain how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

Q: Imagine you own your own business. Based on what you learned from the simulation, what factors would…

A: The firms total costs are equal to the sum of its variable costs and fixed costs. Fixed costs are…

Q: Question 2 Marge's Hair Salon production function is Q=f(K, L) = K0.5 10.5 where K is the number of…

A: Production function refers to a function that shows the technological relation between the factor of…

Q: When a firm is using a technically efficient input combination, the firm is also producing in an…

A: False statement

Q: Skylar owns a firm that produces holiday ornaments. Her production function is given by: f (L, K)…

A: Given- y = (min{x1, 2x2})^1/2 let, We increase X1, X₂ by some constant 'C' y' = ( min { CX₁ + 2 CX ₂…

Q: If there are internal economies of scale, why would it ever make sense for a firm to produce the…

A: Economies of scale refers to a situation when an increase in the production level reduces the per…

Q: If a firm has TFC = $500, and TC = $800 when output is 20 units, how much is the AVC per unit of…

A: While producing goods and services sellers have to incur costs by paying various factor payments to…

Q: which one is true If a firm uses 10 units of labour and 20 units of capital to produce 10 units of…

A: The marginal product of labor refers to the increase in the total output by the addition of one more…

Q: If a firm quadruples (4x) in size and output triples(3x), what is the returns to scale?  a.…

A: The markets are the place where the buyers, and the sellers of the goods, services, and other…

Q: A firm with decreasing returns to scale can expect to produce       [a. more than, b. less than,…

A: Returns to scale Returns to scale is a metric for determining how efficient a production function is…

Q: Which of the following is true of the relationship between Average Cost and Marginal Cost Select…

A: Average Cost refers to the per-unit cost of production, it means both fixed and variable costs are…

Q: A firm currently uses 40 units of labor (L) and 20 units of capital (K) to produce 400 units of…

A: A firm can produce output at reduced cost when it is able to make a combination of all the input…

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

A: a. 50 units of output - Plant Size 1 b. 130 units of output - Plant Size 2 c. 160 units of output -…

Q: Which of the following statements is true?    (a) If a firm is experiencing decreasing returns, it…

A: Production Possibility curve refers to graphical representation that shows all the combination of 2…

Q: Assume that the market price per kilogram of beet pulp is $0.3 and many relatively identical farms…

A: Given  The market price for beet pulp is $0.3  There are many identical firms in the market. The…

Q: Companies can typically maximize their prots by operating at the minimum average total cost curves,…

A: Economic profit= (Price-ATC) *Quantity

Q: Question: Orla manages a loom that produces flags (F) using thread (T) and dye (D) as inputs. Her…

A: Given  The production function of flags Q(T,D)=T1/2D1/21/2                 .... (1)

Q: Based on the information provided in the table below, which of the three firms experiences economies…

A: The economies of scale are the proportionate level of savings incurred to the individual firm or the…

Q: 1. For each of the following production functions, determine whether there areincreasing, constant…

A: A production function shows the maximum level of output that can be produced with the help of…

Q: A lot of companies use the marginal cost function for their business models to determine the…

A: 1. We know, Average cost = AC(x) = C(x)/x  Marginal cost MC(x) = C’(x) At the critical points of…

Q: Ouroboros’ total cost (TC) as a function of its production level q is given by the equation below:…

A: Given  Total cost TC(q)=2q2-12000q+30,000,000              ...... (1) “Since you have posted a…

Q: What are the advantages of internal economies of scale ? Explain shortly.

A: Internal economies of scale mean the company improves output when the average cost of the product…

Q: Where average costs of production are lowest when all output is produced by a single firm

A: Average cost curve: It is a cost bend which is commonly U-shaped. Average variable cost (AVC) is…

Q: 600                 2100                 2500                 2600…

A: Capital is a fixed factor. A fixed amount is assumed to be invested, the interest on which is 10%…

Q: Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 8…

A:

Q: Average Total Cost (Dollars per bike) Number of Factories Q = 100 Q = 200 Q = 300 Q = 400 Q = 500 Q…

A: Note: I am answering the 2 parts only. For the graph part, the complete information to plot the…

Q: 1. For each of the following production functions, determine whether there are increasing, constant…

A: Returns to scale shows the proportional change in the output when the inputs are changed by a…

Q: Consider several production functions below and indicate whether they exhibit constant, increasing…

A: The markets are the place where the buyers of various goods and services tend to interact and meet…

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

A: Economies of scale provides cost advantage to the firm.Firm is able to lower average cost through…

Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…

A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…

Q: For each of the following events identify which of the determinates of demand or supply are…

A: 1. A stock market crash, will bring about a decrease in the wealth of the people, which will result…

Q: Number of Factories 1 2 3 Q = 100 Q = 200 440 620 800 280 380 480 (Dollars per bike) Q = 300 240 240…

A: In case of short-run average cost functions, the firm incurs two types of costs:-Fixed costs and…

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: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: In a market, a firm's output decision depends upon its cost functions bin the short-run as well as…

Q: What are the advantages of internal economies of scale? Explain them briefly

A: Economies of scale occur when there is a decline in the average cost of production as more and more…

Q: Show that the Cobb-Douglas Production Function ?(?, ?) = ??^??^? with α+ β=1 satisfies Euler’s…

A: Paul H Douglas and CW Cobb introduced the Cobb Douglas production function. There are two inputs in…

Q: Is it true that if a firm’s technology exhibits the decreasing return to scale, then average…

A: Introduction The scale of production in two factor production function means a given amount of labor…

Q: Suppose that the production of Y uses two inputs, L and K. L can be any positive real number, while…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Consider the following Cob-Douglas production function: f(k.1) = K°P°, where a 20 and > 0. 1. Show…

A: a) f(k,l) = kαlβf(nk,nl) = (nk)α(nl)β f(nk,nl) =nαkαnβlβf(nk,nl) =nα+β*(kαlβ)It is given that α>0…

Q: Which statement must be false? a)  When a firm has increasing returns to scale in production, its…

A: Increase return to scale : where production  increase proportionally same as input increased. .…

Q: Which of the following is true: Long Run Average Total Costs are always smaller or equal to Short…

A: For a given level of output, Long Run Average Total Cost (LRAC) curve represents the cheapest cost…

Q: A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of…

A: Returns to scale state the effect on the output level due to the increase in the production inputs.