Which of the following would shift a firm's short-run cost curves downward? a.an increase in excise taxes levied on the firm's product b.an increase in the demand for the firm's product c.an advance in technology d.an increase in employees' wages

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: 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: 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: Suppose there is a decrease in the demand for high-definition televisions.   What effect might this…

A: The demand curve shifts when there is a change in other factors other than price of commodity. If…

Q: The diagram shows the short-run cost curves of a firm. Which statement is CORRECT? costs output

A: OPTION A is correct. Curve 1 is Average Fixed Cost Curve AFC = TFC/Q Since TFC is positive at levels…

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: Jesse owns a shop called J's Select Store in Wisconsin.    During the first year of operation, J's…

A: Given from the information: Jesse spent on labor $5,000 Jesse spent on maintenance $2,000 Jesse…

Q: Write a short note on Law of diminishing returns – implications for the short-run cost curve

A: Law of diminishing return to scale implies that as the number of a variable input is raised keeping…

Q: Explain fully the law of diminishing returns. Does this occur in the short run or the long run? How…

A: In economics, the short run is a time period where atleast one factor of production is fixed while…

Q: . Over time Yasir decides to expand his business. In the long run he first experiences economies of…

A:

Q: Which of the following represents the key difference between the short run and the long run? O The…

A: Costs are the expenses incurred by a firm in the production of its output. In production, there are…

Q: High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC…

A: The total fixed cost (TFC) per unit of production is referred to as average fixed cost (AFC). AFC =…

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: Define and explain the following terms associated with long run production Accounting profit…

A: The short-run is the time period where at least one factor of production is fixed and others are…

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

A:

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: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,…

A: Here, an improvement in the technology used, would decrease the cost and will shift the cost curve…

Q: For an increase in output, average costs change by more in the short run than in the long run, but…

A: Average Price The total cost is divided by the number of things produced to get the average cost.…

Q: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

Q: A production function for a good Q uses inputs of labor (L) and capital (K) and takes the form Q=LK.…

A: Cost  The number of goods and services necessary to produce or manufacture is referred to as the…

Q: The long run average total cost curve is tangent to an infinite number of short run _______ cost…

A: The long-run average total cost (LATC) curve of a firm demonstrates the minimum or the least average…

Q: For an increase in output, average costs change by more in the short-run than in the long-run, but…

A: find below the answer.

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: explain the following terms associated with long run production 3.1 Accounting profit 3.2 Economic…

A: 3.1Accounting profit:-This is a cash concept. It means that total revenue minus explicit costs—the…

Q: Suppose a hotel exhibits constant returns to scale as it increases its output. If it increases  all…

A: Returns to scale is about the relationship between input and output. It refers to the amount of…

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: 35) Long-run cost curves are U-shaped because A) of the law of demand. C) of economies and…

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

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given:- Ike's bikes is major manufacturer of bike and total 3 factories. To calculate:- Short run…

Q: A firm has the following average total cost curves: Quantity ATC11 ATC22 ATC33 ATC44 1 100 150 50…

A: Answer-

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: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Average cost is the cost of producing one unit of an output. Average cost is calculated as the ratio…

Q: What is the term for the lowest level of output at which a firm's goods are produced at minimum…

A: please find the answer below.

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: In the short run, behavior of production is explained by Select one: a. The law of diminishing…

A: There are two kinds of periods faced by a business company based on the variability of its…

Q: 1. Evaluate the view that the main goal of firms will always be cost minimization.

A: Note: Only first question is answered since the exact one wasn’t specified, if you want answers for…

Q: What is the difference between production in the short run and production in the long run? Explain…

A:

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.

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.