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

Q: What are economies of scale? Give an example. What are the diseconomies of scale? Give an example.

A: Production cost includes all the direct and indirect costs. With the increase in the firms, the…

Q: Suppose you are a producer of motor vehicles, explain with the use of examples the difference…

A: Economies of scale exist when since a long time ago run normal total expense diminishes as yield…

Q: You own a home-based bakery that specializes in creating themed cupcake displays for special events.…

A: given that the bakery is home based and the mortage payment on the home increases  due to property…

Q: Explain two reasons due to which economies of scale may arise. Write your answer within 40 words.…

A: Economies of scale refer to the cost advantage of the firms when they increase production. Economies…

Q: What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies…

A: Answer - Need to find- What does the long run Average cost curve imply when it is horizontal…

Q: describe economies and diseconomies of scale while explaining possible reasons for both situations…

A: As the production size increases, a firm may experience economies or diseconomies of scale.

Q: Economies to scale refer to

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

Q: Explain economies and diseconomies of scale. Give an example of each.

A: Costs are the expenses that firms incur during the production processes. The firm’s costs depend…

Q: explain with graphs the difference between economies of scale, economies of scope and returns to…

A: Economies of Scale  An economy of scale is the expense advantage an organization has with the…

Q: Why do Economies of Scale Occur? A. Large firms cover their fixed costs by producing lots of units…

A: Fixed cost is constant and remains same at all levels of output. Average cost refers to total cost…

Q: Define the economies and diseconomies of scale and depict graphically how they relate to the long…

A: There are three types of returns to scale- Economies of scale The constant return to scale…

Q: Answer the attached question

A:

Q: If Farmer Jones plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she…

A: Total cost is the cost that includes the fixed as well as variable cost in the product.

Q: In the short run marginal cost crosses average total cost at the minimum of average total cost True…

A: According to the given question Simply a Short run period is that period in which the other factors…

Q: Define and explain the difference between economics of scale and economies of scope. Include an…

A: Definition: Economies of scale are cost-saving strategies in a production process by increasing the…

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: When diseconomies of scale occur: Multiple Choice C marginal cost intersects average total cost. the…

A: Whether the firm is having economies of scale or diseconomies of scale depends upon the long run…

Q: Refer to Figure 1. Which of the short-run average cost curves correctly depict economies to scale?…

A: Long-run average cost The long-run average cost is tangent to the falling portion of the short-run…

Q: Explain the difference between economies of scale and economies of scope with an example.  Please…

A: Answer: Economies of scale: When a firm's average cost of production decreases due to an increase in…

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: If Farmer Jones plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he…

A: If Jones plants 1 bag of seeds, the she will get 3 bushels of wheat, if she plants 2 bags of wheat…

Q: ben diseconomies of scale occur: A the long-run average total cost curve B. marginal cost intersects…

A: Firm produces final goods and services using the factors of production which are broadly divided…

Q: efficient scale is houses.

A: Efficient scale is the scale at which firm can produce its output at minimum average cost.…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? Explain.

A: The return to scale states the change in the output with the proportionate increase of all the…

Q: Differentiate economies of scale and economies of scope

A: Meaning of Economics of Scale: The term economics of scale refers to the situation under which the…

Q: Microeconomics divides costs in to “short-run costs” and “long-run costs”. Can “long-run” differ…

A: The short run is defined as the time frame during which wages and prices of other production inputs…

Q: You own a home-based bakery that specializes in creating themed cupcake displays for special events.…

A: The average variable cost and the marginal cost are affected from the level of output produced in an…

Q: discuss the following and draw and label diagrams. economies of scale and economies of scope

A: Economies of Scale: Economies of scale refers to a situation when the firm's average total cost in…

Q: Evaluate the view that having a business objective of increased economies of scale is always…

A: ii) Economies of scale refer to when there is an increase in the production of goods and services…

Q: Compare and contrast: a) Average fixed cost vs. Total fixed cost b) Total variable cost vs. Average…

A: Differentiate between Average fixed cost and Total fixed cost:- Average fixed cost Total fixed…

Q: Explain why Decreasing cost condition is the best while Increasing Cost Condition is not good

A: Answer to the question is as follows :

Q: Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 4…

A: In microeconomics, long run is the time period when all the resources are variable. Economies of…

Q: . If a firm has economies of scale, it must have increasing returns to scale. True or false? EXPLAIN…

A: Economies of scale provides cost advantage to the firm.Firm is able to lower average cost through…

Q: Define economies of scale

A: Economy of scale is a microeconomic term used as an important element of productivity growth.…

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: 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: Please complete the table with formula.

A: Given values:

Q: Define economies of scale and explain why they mightarise

A: Economics of scale are the result of production efficiency. It can be a reason for a larges firms to…

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: If Farmer Jones plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he…

A: Given the number of bushels produced with seed bags, the following would be the production curve.…

Q: The behavior of long run average cost determines what is known economies of scale, constant return…

A: The long-run average cost shows the cost of producing per unit of output in the long-run. The…

Q: Explain two types of economics of scale that a person might gain by moving from a small food stall…

A: Economics of scale is gained when the production scale decreases long term AC. This means it is…