What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies of scale. There are constant returns to scale. O There are economies of scale.

Q: Which of the following describes increasing returns to scale?     A. Long Run Average Total Costs…

A: The total cost of production refers to the monetary value of inputs used in the production of goods…

Q: A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached…

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

Q: B. Refer to the figure below. LRAC a. In the short run, capital is a fixed cost. Draw for a few…

A: Short Run Average Cost (SRAC) is equal to average fixed cost and average variable cost. It is…

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: A firm called Anonymous of Toronto makes corrugated cardboard boxes. It decides to increases all of…

A: The firms, and businesses in an economy tend to operate with the motive of earning maximum amount of…

Q: Which of the following is true of fixed costs?   a. Fixed costs can be changed, but it is…

A: Fixed costs are those that do not change with changes in the output level produced. They are the…

Q: A firm pays $500,000 per year on costs that it cannot alter in the short run. This year, it expects…

A: Cost Cost refers to any expense that incur in the process of production. Total cost is made up of…

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: If a firm quadruples (4x) in size and output increases sixfold (6x), what is the returns to scale?

A: Here input increase 4× and output increase 6×

Q: Suppose an automobile manufacturer is choosing between two production options. It can produce 100…

A:

Q: Define the economies and diseconomies of scale and depict graphically how they relate to the long…

A: There are three types of returns to scale- Economies of scale The constant return to scale…

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: Which of the following can wę conclude when production has diseconomies of scale? Average fixed cost…

A: please find the answer below.

Q: cermine whether the production technology in each situation exhibits constant returns to scale, in…

A: Increasing returns to scale: The proportionate rise in output is larger than proportionate rise in…

Q: What is difference between fixed and variable cost in short run? How does this result in the classic…

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

Q: Which long-run average total cost (LRTC) graph exhibits diseconomies of scale? LRATC LRATC

A: "Correct option is the first graph which is upward sloping."

Q: Note: Plot your points in the order in which you would like them connected. Line segments will…

A: Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short run…

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: Use the concepts of economies and diseconomies of scale to explain the shape of a firm’s long-run…

A: Economies of scale refer to the cost advantages that are derived from the expansion of the scale of…

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

A: Economies of scale and returns to scale are two sides of the same coin.

Q: Help me answer this review question. Fill in the Blanks.  If the marginal cost equals average cost,…

A: In a market, cost curves provide significant information about the productivity and efficiency of…

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

A: The return to scale states the change in the output with the proportionate increase of all the…

Q: In the given figure, short-run cost curves are depicted. What role does the graph's Curve Y…

A: "Cost curves in economics represents a graph of the costs involved in the production process as a…

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

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…

Q: Answer the following Questions. Include referencing where additional sources have been used a. Why…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What factors give rise to increasing returns to scale and decreasing returns to scale?

A: Increasing returns to scale means when all inputs are increased, the output is increased by more…

Q: These occur when doubling all of the inputs to a production process doubles the output. The shape of…

A: Returns to scale denote the relationship between inputs and outputs.

Q: Give business examples of short-run costs, economies of scale, and minimum efficient scale (MES).

A: At the Mininum effiecient scale point, the company could achieve the economies of scale being…

Q: Explain why the red curve is an incorrect representation of a long-run average cost curve. Note: the…

A: The average cost is the called the per unit cost of production. The AC = TC/Q. The long run Average…

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: Refer to the above diagram. Diseconomies of scale?

A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…

Q: Question 11 Refer to the Long Run Average Total Cost curve below to answer the following questions:…

A: Hi. since there are multiple questions we will answer only the first three questions.

Q: Production Point Capital (K)  Labor (L) Output (Q) A 1 1 2 B 2 2   C 1 3   D 2 4   E 1 5   F 2 6   G…

A: Returns to scale can be classified into three categories; 1- Increasing returns to scale (IRS) 2-…

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: Cost curves in the long run differ from cost curves in the short run.   This is true right.

A: YES the statement that "Cost curves in the long run differ from the cost curves in the short run" is…

Q: a) Find the short-run TC, TVC, and TFC curves for this production process. Sketch them on a single…

A: Q = f(K, L) = 3KL When K = 4, Q = 12L L = Q/12 TC = wL + rK = 24 x (Q/12) + (2 x 4) TC = 2Q + 8 TVC…

Q: Use the concepts of economies and diseconomies of scale to explain the shape of a firm’s long-run…

A: Economies of scale are the profits or advantages that firms earn due to their size of the operation.…

Q: The ff are true about economies of scale except one a. It is concept in cost function b. Costs…

A: Economies of scale arises from efficiency in labor productivity which causes long run average cost…

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: Production Point Capital (K)  Labor (L) Output (Q) A 1 1 2 B 2 2   C 1 3   D 2 4   E 1 5   F 2 6   G…

A: Given information Production table is given Production Point Capital (K)  Labor (L) Output (Q)…

Q: Explain how a change in the price of one input factor changes a firm’s long-run expansion path?

A: The firms, and businesses are the entities who are considered to be of utmost importance for the…