When diseconomies of scale occur: Multiple Choice C marginal cost intersects average total cost. the long-run average total cost curve rises. average fixed costs will rise. the long-run average total cost curve falls.

Q: A firm encountering economies of scale over some ange of output will have a: rising long-run average…

A: The economies and diseconomies of scale affect the shape of average cost curve.

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 encountering economies of scale over some range of output will have a a. rising, then…

A: Microeconomics is a part studied under economics that is used to understand the demand and supply…

Q: Economies to scale refer to

A: Companies benefit from economies of scale as manufacturing gets more efficient.Economies of scale…

Q: The marginal cost curve: is a vertical line. generally rises at first and then declines as output…

A: Marginal cost is the cost of producing additional unit of output. The shape of marginal cost depends…

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: Diseconomies of scale occur when:A) average total cost increases as output increases.B) average…

A: The process of production is the combining of the raw materials and the skills and knowledge of the…

Q: Economies and diseconomies of scale explain: Group of answer choices the profit-maximizing level of…

A: Economies of scale are the point at which the expense per unit of creation (Average expense)…

Q: Businesses wanted to reduce their cost to the minimum without compromising the product quality and…

A: Companies benefit from economies of scale when their production gets more efficient. Economies of…

Q: Short-run costs that do not depend on the level of output are A) total variable costs only. B) total…

A: The cost is the money spent to purchase the factor of production by the producer. There there are…

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

A: 1) The main goal of the firm is cost minimization. This is because if the firm minimises the cost,…

Q: If producing more output increases average cost then         a)there are diseconomies of scale.…

A: Answer to the question is as :

Q: 56. When a firm is experiencing diseconomies of scale, long-run average total cost is falling and it…

A: Answer - Need to find - When a firm is experiencing diseconomies of scale  Diseconomies of scale :-…

Q: When a firm experiences economies of scale in production, a. long-run average total cost declines as…

A: In the long run, firm can change its all factors of production and produce the output where the…

Q: In the long run, the long-run average cost curve whereas in the very long run, the long-run average…

A: There are four production time periods in microeconomics, they are very short run, short run, long…

Q: Diseconomies of scale occur mainly because

A: Diseconomies of scale is associated with the increasing cost per unit with increase in the scale of…

Q: A long run total cost curve   a.   must be equal to zero when output is zero   cross out…

A: In the mentioned question we have been asked what will be the value of long-run total cost if the…

Q: If an increase in output size results in reductions in average costs, this is known as:…

A: An increase in the level of production increases the size of the output. This leads to a fall in the…

Q: The upward sloping portion of a long-run average cost curve illustrates diseconomies of scale.…

A: Economies of scale refer to the production gets cheaper when more and more units are produced (up to…

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: A producer borrows money and starts a business. He himself looks after the business. Identify…

A: (1.) A producer borrows money and starts a business. He himself looks after the business. Identify…

Q: The MC curve crosses the ATC curve at ATC's minimum, because A. ATC is falling when MCATC B. ATC is…

A: Marginal cost refers to change in total cost with respect to change in output. Average total cost is…

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: The portion of a long run average cost curve that is downward sloping is called the range of: Group…

A: The long-run average cost curve is the cost curve which helps to analyze the cost function of the…

Q: Total variable cost as output increases, and total fixed cost as output increases Select one: A.…

A: The variable cost is the cost that changes when the output changes. This includes labor cost, cost…

Q: The reason the marginal cost curve eventually increases as output increases for the typical firm is…

A: The marginal cost of production is the difference in total production costs caused by adding one…

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: Jeb owns a small marketing company, which he operates from a home office. Jeb’s home office is an…

A: Fixed Cost remains same at all levels of output. Marginal Cost is the additional cost incurred while…

Q: Minimum efficient scale for production of a good or service: Select correct one : a) is the point…

A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…

Q: Diseconomies of scale exist over the range of output for which the long-run average cost curve is a.…

A: The firms are considered to be the producers who work with the motive of earning maximum possible…

Q: 3. What are the differences between the internal and external economies of scale?

A: When it increases its level of output, it often experiences some cost advantage, referred to as…

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: (TC is total cost; VC is variable cost; Q is quantity.) ATC а. b. The amount by which total cost…

A: A -Change in TC dur to change in output is called MARGINAL COST B- AMOUNT by which total 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: The downward-sloping segment of the long-run average cost curve corresponds to *…

A: In production activity, time period under consideration determines the nature of costs faced by the…

Q: Tong ruh, keep outpu Iikely do Shift to operate on ATC2 Shift to operate on ATC3 Shut down Stay on…

A: The above given cases are analyzed as follows:

Q: Distinguish between economies of scale and diseconomies of scale. Give examples of why a firm may…

A: The long-run average total cost curve declines because apparently, the firm becomes efficient in…

Q: Businesses wanted to reduce their cost to the minimum without compromising the product quality and…

A: Economies of scale:- Economies of scale can be explained as the cost advantages that businesses gain…

Q: Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as…

A: "Diseconomies of scale occurs when each item produced cost more and more as a firm continue to grow…

Q: A small coffee house has the following costs:  building and pizza oven rentals 100,000  labor…

A: Since we only attempt upto 3 subparts, we shall answer a, b and c only. Please resubmit the question…

Q: Marginal cost equals None of the above are correct. total cost divided by quantity of output…

A: Marginal cost: The cost that is incurred on the production of an additional unit of output is…

Q: A downward-sloping portion of a long-run average total cost curve is the result of a.the existence…

A: The total cost is the sum of fixed cost and variable cost in the production process. When the total…

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: The output level at which long-run costs are minimised is known as: (a)  Average fixed cost; (b)…

A: Total cost is the cost incurred by the firm on hiring factors of production to produce the final…

Q: If a firm is currently producing zero output, then total costs equal average variable costs. B…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.