You are interested in starting a used car dealership in your country. Provide examples with explanations of implicit cost and sunk costs related to this business.   2. Suppose you are a producer of motor vehicles, explain with the use of examples the difference between the following concepts: diseconomies of scale and constant returns to scale.

Q: Question Given the following cost function: TC = 1500 + 15Q – 6Q 2 + Q3 (a) Determine the total…

A: Total cost is computed as the sum of total fixed costs and total variable costs incurred by the…

Q: Which of the following statements is TRUE? O The average variable cost curve must always be…

A: The addition of fixed and Variable Cost gives us total costs, which when divided by the output give…

Q: FIGURE 7-2 $100 90 80 70 60 50 40 30 20 10 1 2 3 4 5 6 7 8 9 10 Quantity of Output Refer to Figure…

A: please find the answer below.

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

A: Tricycle is a function of function of two set of inputs :  Steering wheel , seat & frame : (v)…

Q: (a) Define economies of scale and explain why they might arise. Define diseconomies of scale and…

A: Part (a) Economies of scale arises when the long run average total cost curve declines as output…

Q: Three departments-milling (M), drilling (UJ, three work areas in Victor Berardis's machine shop in…

A: Workpiece feet from M to D = 22 * 9 = 198Workpiece feet from M to S = 34 * 5 = 170Workpiece feet…

Q: 1. Economies of scale exist over the range of output to units. Does the firm experience diseconomies…

A: Economies of Scale  This describes the cost savings that occur as a company expands its scale of…

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: 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: FIGURE 7-3 $100 90- 80 70 60 50 主 40 30 20 10 1 2 3 4 5 6 7 8 9 10 Quantity of Output Refer to…

A: please find the answer below.

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: Given the Total Product indicated in Table 2, complete MFMI’s cost schedule including variable…

A: The variable cost can be calculated by using the following formula as follows: Variable cost=Total…

Q: Table 13-17 Consider the following table of long-run total cost for four different firms: Quantity…

A: Constant returns to scale refers to situation when output increases in the same amount as the cost…

Q: 7. Product & Cost Curves: Numerical Cobb-Douglas Case > Continue with the general functions from the…

A:

Q: What is the formula to calculate profits?

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: The Jones Company has the following cost schedule:   Output Total Cost (Units) (OMR)     0…

A: Table Output(1) TC(2) MC(3) FC(4) AFC(5) VC(6) ATC(7) AVC(8) 0 3000 -…

Q: 1. The firm's fixed costs are $2,000, and the firm's total costs of producing 100 units is $4,000.…

A: Total cost is the sum total of fixed cost and variable cost.

Q: Which average total cost curve has the lowest average total cost of producing 30,000 bushels of…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Answer the question of the production cost as follows: 1.1  Based on Table below, calculate average…

A: You have posted multiple question, as per guidelines we will solve one question at a time.  Given…

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: 7 A firm has this cost function: C = 4000 - 7Q + 8Q2. The firm is currently producing 5 units of its…

A: Cost Function = C = 4000 - 7Q + 8Q2  where Q = 5

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: Refer to the figure below. What can we conclude from this figure? Graph of Per Unit Costs What is…

A: The creation of additional output due to the result of additional input being placed into the…

Q: 8. A businessman is thinking of opening a factory in one of these places in Ethiopia: Bahir Dar, or…

A: Represent the table showing the fixed cost and variable cost as follows:

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: 2.1 For each of the following, decide whether you agree or dis- agree and explain your answer: a.…

A: There are decreasing, increasing and constant returns to scale.

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: If firm X produces 20 units of product with a total cost of 100, what is its average cost?    a)…

A: Total cost=total fixed cost+total variable cost

Q: Total Output 0 cases of books 1 2 3 4 Total Variable Cost $0 100 150 250 450 Total Cost $200 300 350…

A: Marginal cost (MC) measures the change in the change in total cost due to a change in quantity. MC =…

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: Which of the following are likely to be fixed costs and which variable costs for a chocolate factory…

A: Fixed Cost refers to the cost that remains constant over a period of time irrespective of the amount…

Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…

A: Define economies of scale and explain why they might arise. When the long-run average total…

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: a) Marginal Cost The marginal cost of production is the difference in total production costs that…

Q: Which statement must be false? a)  When a firm has increasing returns to scale in production, its…

A: Increase return to scale : where production  increase proportionally same as input increased. .…

Q: 7. If the Marginal Cost for a product is found to be MC = 10eº.5x, and the Marginal Revenue is given…

A: We are going to find the cost function and profit function to answer this question,

Q: 3. Anron Manufacturing produces a product which has 3 different costs and a relevant range between…

A: Here we calculate the cost formula , so by using the given information we calculate and choose the…

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.