Why do we refer to the long-run average cost curve as a "boundary"? a. The points below the curve represent cost levels that are unattainable given current technology and factor prices. b. The points above the curve represent cost levels attainable to the firm only with adjustment of all factor prices. c.

Q: Beyond a certain level of output, the short-run marginal cost witl rise because there is no fixed…

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

Q: a. Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: A.  Why will firms in most markets be located at or close to the bottom of the long-run average cost…

Q: Course: Microeconomic - Long and short run costs The company "Mr. Tomas" manufactures tricycles…

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Q: true or false The minimum short-run average total cost occurs at a level of output that is greater…

A: The minimum short-run average total cost occurs at a level of output that is greater than that at…

Q: Long-Run Marginal Costs Like all average cost curves, the long-run (LATC) curve has its own marginal…

A: In a market, marginal cost and average cost are related to each other to some extent.

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A: Short run refers to the time period where some of the factors of production remain same throughout…

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A: Decreasing return to scale - when proportionate increase in inputs causes less than proportionate…

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A: Total fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: ii) Listed in the table is the short-run total cost for Firm C. Output 1 2 3 4 Cost 20 39 57 74 90…

A: The diminishing return means the marginal cost should increase as the output increases.

Q: Question 2 Output Marginal Product Variable Cost Fixed Cost Labor $0 $5 100 100 $5 $5 250 $10 $5 3…

A: We have given a table  Labor Output Marginal Product Variable cost  Fixed cost 0 0   0 5 1…

Q: 1.Assume that a firm experiences constant returns to scale over twenty-five percent of its output…

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

Q: Question 4. (a) Explain how the long-run average cost curves will differ between a private hospital…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: 1 2. Short-run versus long-run costs and expenditur Aa Aa The following isoquants depict the…

A: In the long run, all the factors of production are variable whereas, in the short run, at least one…

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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: 1. Relation of A and T curves *3* As the level of production increases in the short-run, the Average…

A: As total fixed cost remains constant, the average fixed cost which is  TFC/Q keeps on decreasing…

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

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

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A: Answers   TC=200+55q a) Fixed cost is that cost that is constant throughout all the quantities of…

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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…

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A: Total cost of production is the total expenditure incurred by the firm on the factors of production…

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: total output

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A: The question has been solved below.

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Q: 31. Applied Optimization Due Wednesday, Mar 25, 11:59pm CDT O Find the economic lot or economic…

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Q: Exercise No. 5 Production and Costs Course & Section: Name: IDENTIFICATION Marginal cost output…

A: IDENTIFICATION    Marginal cost   1. The additional cost from an additional unit of output produced.…

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.