Which of the following describes increasing returns to scale?     A. Long Run Average Total Costs are rising with output increase   B. Long Run Average Total Costs are decreasing with output increase   C. Long Run Average Total Costs are constant with output increase

Q: Explain the influence of costs in the short run on a firm's output

A: Short-run is a period of time when there is some cost which cannot be varied.

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: a. Complete the following table and answer two questions about costs. Instructions: Enter your…

A: Here we calculate the following terms by using the given information , so the calculation of the…

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: Adam Smith is considered the father of economics. He was the first individual to notice that as long…

Q: Define the concept of short run and Long run ( ..). Then, use an example each to illustrate the…

A: In the short run production, it is assumed that at least one of the input is fixed and the remaining…

Q: 2-lf you have the following production function Q=f( L,K), answer the following: 1. Is this function…

A: Given: Q=f(L,K)

Q: Why does the difference between AVC and ATC get smaller as Q increases? b)  Why does MC intersect…

A: Since you have asked multiple questions we will answer the first three for you. The average cost…

Q: Which of the following statements about average product and marginal product is correct? (A) If…

A: Average product is the total product which is produced divide by the total number of variable inputs…

Q: xplain the relationship between total product, marginal product, and average product. How does the…

A: Microeconomics is a branch of economics that deals with the behavior, consumption, and allocation…

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: what is meant by the term Cost of production? Distinguish between fixed and variable cost. Why short…

A: One of the important motives for the firms operating in a market is profit. Profit is the difference…

Q: Suppose a firm produces cars and the minimum efficient scale is 2,000,000 cars. The inputs are labor…

A:

Q: The shape of the Total Product curve on the production side gives us the shape of which curve on the…

A: The cost of producing a firm's output depends on the number of labor and physical capital which are…

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale is situation when producing more quantity of goods , the unit cost of…

Q: 37) If production displays economies of scale, the long-run average cost curve is A) above the…

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

Q: ing to the long-run average cost cur

A: The cost of per unit output is known as the average cost. It directly depends on returns which…

Q: Explain how a firm may transition from the short-run production decision to the long-run production…

A: In short-run, Price = short-run marginal cost (SMC). The firm would produce that output at which P…

Q: How is the difference between average total cost and average variable cost impacted by an increase…

A: The total cost of a firm is the sum of the fixed cost and variable cost. Total cost increase with…

Q: How the shape of the total variable cost curve (TVC) and total cost curve (TC) is related with the…

A: Cost refers to the financial valuation of products and services purchased by manufacturers and…

Q: Suppose a firm produces cars and the minimum efficient scale is 2,000,000 cars. The inputs are labor…

A: LRAC refers to long run average cost and SRAC refers to short run average cost. Long run average…

Q: A firm has economies of scale, it must have increasing returns to scale. Explain?

A: Economies of scale are cost advantages experienced by firms when production becomes efficient.…

Q: il to his long run average cost of production ter than his long run average cost of production than…

A: Economies of scaleLong-run ATC falls as yield increments. Diseconomies of scale Long-run ATC ascends…

Q: When examining the costs faced by a business, explain how economists distinguish between the short…

A: First part The contrast between the short and long runs is critical in economics. It turns out that…

Q: which are two (2) sources of internal economies of scale for a business organization, please…

A: A microeconomic concept that relates to elements that lower production costs while increasing output…

Q: Explain what we mean by increasing, decreasing and constant returns to scale.

A: Returns to scale is defined as the change in output due to a quantitative increase in the inputs of…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: Capital: Capital is a term that refers to financial assets, including specific funds invested in…

Q: Accounting Complete the table and Graph the cost curves:   Output (Q)/day Total Variable costs…

A: Output/day VC TC MC ATC AVC 0 0 635       1 50         2 100         3 150         4 200…

Q: 1)Which of the following is most likely to be a fixed cost for a firm? A) The interest payments made…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: M/c question - Micro 21)For a firm, what does the production function represent? A. the…

A: 21) option c is the correct answer option-c       quantity of inputs and quantity of output…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: The total cost incurred by firms includes fixed costs and variable costs. Fixed costs are the costs…

Q: d. Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns…

A: Diseconomies of scale is occurs when the per unit cost of output increases as output level increases…

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale takes place when there is reduction in the cost of production with the…

Q: 22. What does the Long Run Average Cost curve depict? a) It depicts the relationship between Average…

A: Long-run average total cost (LRATC) is a business metric that addresses the average cost per unit of…

Q: Do the following production functions have increasing, decreasing, or constant returns to scale?…

A:

Q: Suppose that Hyundai increases the amount of capital, labor, and other inputs it uses by 10% and as…

A: When product is manufactured and put into production process, cost  takes place and process of…

Q: Consider the following information on long run total costs: Output 1 2 3 4 5 6. 7 Total Costs 50 90…

A: Output Total Cost Marginal Cost ATC 0 0 0 0 1 50 50 50 2 90 40 45 3 123 33 41 4 160 37 40…

Q: Explain how a firm may transition from the short run production decision to long-term production…

A: In the long run the wage rates and waged adjust fully to the economy. There is no fixed cost, all is…

Q: A firm hires two workers and rents 15 acres of land for a season.It produces 150000 bushels of…

A: Here, it is given that, Initial production: 150000 bushels of crop Final production after doubling…

Q: 1. Do the following production functions exhibit increasing, constant of decreasing returns to scale…

A: "A production function states the relationship between factor inputs used and the amount of output…

Q: a. Why is the gap or difference between average total cost and average variable cost larger at…

A: Cost is a metric of the possibilities foregone when one product or task is chosen over another.

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.