Suppose there is a decrease in the demand for high-definition televisions.   What effect might this change have on the short-run average total cost curve for this product? _____   a) A decrease. When demand decreases, the short-run average total cost falls.   b) An increase. When demand decreases, the short-run average total cost increases.   c) No change. Demand determines the final price but not the costs for the product.

Q: Which of the following is true in the short run at the output level where average total cost is at…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

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A: Given information Universal's variable cost to rent a car is $15 Fleet size is fixed at 21,666 The…

Q: Which firms have diseconomies of scale over the entire range of output?  a. Firm 1 b. Firm 2 c.…

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Q: Which of the following statements is false?     a. The long-run average-total-cost curve does not…

A: Total cost

Q: regarded as costs by accountants but not by economists. B. payments that a firm makes to other firms…

A: Economic profit= total revenue- total cost

Q: The following is a Cobb-Douglas production function: Q = 1.75K0.6L0.5. What is correct here? *…

A: Since the sum of coefficient of L and K is higher than 1 (= 0.5 + 0.6 = 1.1), there are increasing…

Q: Which of the following is true in the short run at the output level where average total cost is at…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

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: The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC s the…

A: Since you have asked for the solution of B and C only. So, I am answering only B and C.

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: Select choices which are true about Total Costs.  (Select all that apply.)   Question 38 options:…

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

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

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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: (9) The short run is a time period in which: (a) all resources are fixed. (b) the level of output is…

A: As you have not mentioned the exact question as per our policy I am answering first three questions.

Q: If Q = 2LK2 , what happens to average cost as the firm expands (produces more)? a.AC reaches its…

A: Cobb-Douglas production function of Q=ALa Kb with a+b>1 shows increasing returns to scale.

Q: What effect might a decrease in the  demand for high definition television have on the short-run…

A:

Q: Which of the following statements is (are) correct? (x)  In the short run, if a firm produces…

A: Fixed cost is the cost incurred by the producer for the purchase of fixed inputs. These costs do not…

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: or a decrease in output, average costs change by more in the long run than in the short run - True…

A: If there is a decrease in the production, short-run average total cost and long-run average total…

Q: What happen when you add Total Fix Cost and Total Variable cost that is divided by their quantity.…

A: Production cost is the monetary value that is used to acquire factor of production to produce goods…

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: he supply curve overtime is more elastic than the supply curve over the short period of time…

A: Supply curve shows the relationship between price and quantity supplies by the producers. Since…

Q: Q45 When a factory is operating at the level of output where its short-run average total cost is at…

A: Short-run average expense (SRATC/SRAC) approaches average fixed expenses in addition to average…

Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be…

A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales…

Q: Q61 If a firm's total fixed costs are $100 and average variable costs are constant regardless of…

A: Let the constant average variable cost be $10 The total fixed cost be $100 Output TFC AFC…

Q: In the short run, a firm's total costs of producing 100 units of output equal $10,000. If it…

A: The firms, and businesses are the entities who are involved in the production activities, and the…

Q: The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC is the…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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: Answer the following: If TVC = $80 and AVC = 4, then what does quantity (Q) equal? (b) If…

A: Total cost = TFC + TVC AVC = TVC/Q AC =TC/Q MCn=TCn -TCn-1= change in TC/change in Q AFC = TFC/Q

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: ABC company's total cost when it produces 20 units is $100.  ABC's total cost is $120 when it…

A: Total cost is the expenditure incurred in the production of goods and services. It is the cost that…

Q: Which of the following statements is generally correct? * O The long-run average total cost curve is…

A: The average total cost curve refers to the curve that provides information about the mean value of…

Q: The following represents the short-run average total costs for a large shipping company.     Short…

A: Answer: Introduction: Short-run a period of time where the fixed resources can not be changed. In…

Q: Which of the following would shift a firm's short-run cost curves downward? a.an increase in excise…

A: The minimum cost impact of output changes for a specific plant size is referred to as a short-run…

Q: following is a total cost curve. Calculate and sketch the corresponding MC curve. If the price of…

A: TC = Total revenue  MC = Marginal cost  TR = Total revenue  FC = fixed cost MR = Marginal revenue

Q: Q15 _____ cost declines over the whole range of output. a. Average variable. b. Total variable. c.…

A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Here, total output given is 1,000 units. Average total cost is $100. Average total cost is defined…

Q: Which of the following statements is CORRECT?   Question 17 options:   Short-run decisions are not…

A: There are various factors that affect the production. Some factors are variable and some are fixed.

Q: Why do we refer to the long-run average cost curve as a "boundary"? a. The points below the curve…

A: * ANSWER :-  *(46) * The OPTION E (The points on the curve represent a boundary between fixed factor…

Q: Which of the following statements is FALSE? Question 6 options: Marginal cost equals average total…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Which of the following results when an increase in all inputs results in a more-than-proportionate…

A: Answer - a) Diseconomics of Scale -  It is the opposite of economics of scale . Diseconomics of…

Q: When a firm produces one unit, the variable cost is $8. When the firm produces two units, the…

A: Marginal cost is the addition to the total cost. Total cost consists of total fixed cost and…

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…

Q: True or False: For an increase in output, average costs change by more in the short-run than in the…

A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…

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.