If Boeing produces 9 jets per month, its long-run total cost is $9.0 million per month. If it produces 10 jets per month, its long-run total cost is $9.5 million per month. Does Boeing exhibit economies or diseconomies of scale? Provide reasons.

Q: How and why does a firm’s average-total cost curve differ in the short run compared with the long…

A: In the long run, a firm adjusts the different factors of production that are fixed in comparison in…

Q: If a higher level of production allows workers to specialize in particular tasks, a firm will likely…

A: The production refers to the process of combining the raw material with the factors of production,…

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Q: A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached…

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A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

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

A: Economies of scale means reducing production cost by increasing output at a large scale.

Q: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: Economies to scale refer to

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

Q: If Boeing produces 9 jets per month, its long-runtotal cost is $9 million per month. If it…

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A: Economies of scale refers to the reduction in the average total cost of production which is secured…

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A: Given:  Suppose the hospital provides care for  Patients: 15000 Total Cost = $60,000,000   If…

Q: A firm pays $500,000 per year on costs that it cannot alter in the short run. This year, it expects…

A: Cost Cost refers to any expense that incur in the process of production. Total cost is made up of…

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: In the long-run, a company that produces and sells popcorn incurs total costs of $1,350 when output…

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

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Which long-run average total cost (LRTC) graph exhibits diseconomies of scale? LRATC LRATC

A: "Correct option is the first graph which is upward sloping."

Q: If all resources used in the production of a product are increased by 20 percent and output…

A: In economics, the cost of production is outlined because the expenditures incurred to get the…

Q: Note: Plot your points in the order in which you would like them connected. Line segments will…

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A: Answer to the question is as :

Q: 1. Economies of scale Web Slinger is an Internet service provider. In the long run, Web Slinger can…

A: Answer: To derive the long-run average cost curve, we need average cost. The average cost schedule…

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A: The shape of long run cost curve changes depending on the returns to scale.

Q: Some individuals decry the decline of the small family farm and its replacement with the huge…

A: The situation of reducing the total cost during the process of increasing production is referred to…

Q: Use the concepts of economies and diseconomies of scale to explain the shape of a firm’s long-run…

A: Economies of scale refer to the cost advantages that are derived from the expansion of the scale of…

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…

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A: Total cost is the sum of fixed cost and variable cost. Variable cost is a cost that varies with the…

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A: In a market, economies of scale is considered as one of the competitive advantage of a firm.

Q: The upward sloping portion of a long-run average cost curve illustrates diseconomies of scale.…

A: Economies of scale refer to the production gets cheaper when more and more units are produced (up to…

Q: Which of the following results from bureaucratic red tape, breakdown of top-to-bottom communication,…

A: The Diseconomies of scale are the consequence that occurs because of bureaucratic red tape,…

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A: The minimum efficient scale (MES) is the balance point at which a company can produce goods at a…

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A: Average cost is total cost divided by total production while marginal cost is the change in total…

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A:

Q: Question 3. Refer to the information provided in the following figure, If this firm's cost of…

A: Isocost line represents the different combinations of factors of production a firm can afford to…

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: Refer to the above diagram. Diseconomies of scale?

A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…

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

A: Diseconomies of scale occurs when a firm's Average cost increases with increase in the output.…

Q: The downward-sloping segment of the long-run average cost curve corresponds to *…

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Q: Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as…

A: "Diseconomies of scale occurs when each item produced cost more and more as a firm continue to grow…

Q: Explain the difference between economies and diseconomies of scale. Provide examples of when an…

A: Economies of scale occurs when the long run total average cost would reduce as the number of units…

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.