The long-run cost curves of a typical firm and the firm’s minimum efficient scale of operation. Concept Introduction: Long-run refers to the time period in which no input is fixed. In other words, in the long-run all the inputs used in the production process can be varied. Economies of scale- It occurs when the rate of increase in output exceeds the rate of increase in inputs. When this situation occurs the firm's average total cost falls. Constant returns to scale- It occurs when the rate of increase in output is equal to the rate of increase in inputs. When this situation occurs, the firm's average total costs remain constant. Diseconomies of scale- It occurs when the rate of increase in output is less than the rate of increase in inputs. When this situation occurs, the firm's average total costs increase with output.

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Answer 1

Question

Chapter 22, Problem 22.4LO

To determine

The long-run cost curves of a typical firm and the firm’s minimum efficient scale of operation.

Concept Introduction:

Long-run refers to the time period in which no input is fixed. In other words, in the long-run all the inputs used in the production process can be varied.

Economies of scale- It occurs when the rate of increase in output exceeds the rate of increase in inputs. When this situation occurs the firm's average total cost falls.

Constant returns to scale- It occurs when the rate of increase in output is equal to the rate of increase in inputs. When this situation occurs, the firm's average total costs remain constant.

Diseconomies of scale- It occurs when the rate of increase in output is less than the rate of increase in inputs. When this situation occurs, the firm's average total costs increase with output.

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Answer 2

Question

Chapter 22, Problem 22.4LO

To determine

The long-run cost curves of a typical firm and the firm’s minimum efficient scale of operation.

Concept Introduction:

Long-run refers to the time period in which no input is fixed. In other words, in the long-run all the inputs used in the production process can be varied.

Economies of scale- It occurs when the rate of increase in output exceeds the rate of increase in inputs. When this situation occurs the firm's average total cost falls.

Constant returns to scale- It occurs when the rate of increase in output is equal to the rate of increase in inputs. When this situation occurs, the firm's average total costs remain constant.

Diseconomies of scale- It occurs when the rate of increase in output is less than the rate of increase in inputs. When this situation occurs, the firm's average total costs increase with output.

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Answer 3

Question

Chapter 22, Problem 22.4LO

To determine

The long-run cost curves of a typical firm and the firm’s minimum efficient scale of operation.

Concept Introduction:

Long-run refers to the time period in which no input is fixed. In other words, in the long-run all the inputs used in the production process can be varied.

Economies of scale- It occurs when the rate of increase in output exceeds the rate of increase in inputs. When this situation occurs the firm's average total cost falls.

Constant returns to scale- It occurs when the rate of increase in output is equal to the rate of increase in inputs. When this situation occurs, the firm's average total costs remain constant.

Diseconomies of scale- It occurs when the rate of increase in output is less than the rate of increase in inputs. When this situation occurs, the firm's average total costs increase with output.

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Answer 4

Question

Chapter 22, Problem 22.4LO

To determine

The long-run cost curves of a typical firm and the firm’s minimum efficient scale of operation.

Concept Introduction:

Long-run refers to the time period in which no input is fixed. In other words, in the long-run all the inputs used in the production process can be varied.

Economies of scale- It occurs when the rate of increase in output exceeds the rate of increase in inputs. When this situation occurs the firm's average total cost falls.

Constant returns to scale- It occurs when the rate of increase in output is equal to the rate of increase in inputs. When this situation occurs, the firm's average total costs remain constant.

Diseconomies of scale- It occurs when the rate of increase in output is less than the rate of increase in inputs. When this situation occurs, the firm's average total costs increase with output.

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Answer 5

Chapter 22, Problem 22.4LO

To determine

The long-run cost curves of a typical firm and the firm’s minimum efficient scale of operation.

Concept Introduction:

Long-run refers to the time period in which no input is fixed. In other words, in the long-run all the inputs used in the production process can be varied.

Economies of scale- It occurs when the rate of increase in output exceeds the rate of increase in inputs. When this situation occurs the firm's average total cost falls.

Constant returns to scale- It occurs when the rate of increase in output is equal to the rate of increase in inputs. When this situation occurs, the firm's average total costs remain constant.

Diseconomies of scale- It occurs when the rate of increase in output is less than the rate of increase in inputs. When this situation occurs, the firm's average total costs increase with output.

Answer 6

Chapter 22, Problem 22.4LO

To determine

The long-run cost curves of a typical firm and the firm’s minimum efficient scale of operation.

Concept Introduction:

Long-run refers to the time period in which no input is fixed. In other words, in the long-run all the inputs used in the production process can be varied.

Economies of scale- It occurs when the rate of increase in output exceeds the rate of increase in inputs. When this situation occurs the firm's average total cost falls.

Constant returns to scale- It occurs when the rate of increase in output is equal to the rate of increase in inputs. When this situation occurs, the firm's average total costs remain constant.

Diseconomies of scale- It occurs when the rate of increase in output is less than the rate of increase in inputs. When this situation occurs, the firm's average total costs increase with output.

Answer 7

Chapter 22, Problem 22.4LO

To determine

The long-run cost curves of a typical firm and the firm’s minimum efficient scale of operation.

Concept Introduction:

Long-run refers to the time period in which no input is fixed. In other words, in the long-run all the inputs used in the production process can be varied.

Economies of scale- It occurs when the rate of increase in output exceeds the rate of increase in inputs. When this situation occurs the firm's average total cost falls.

Constant returns to scale- It occurs when the rate of increase in output is equal to the rate of increase in inputs. When this situation occurs, the firm's average total costs remain constant.

Diseconomies of scale- It occurs when the rate of increase in output is less than the rate of increase in inputs. When this situation occurs, the firm's average total costs increase with output.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 22 - Prob. 22.1LO Ch. 22 - Prob. 22.2LO Ch. 22 - Prob. 22.3LO Ch. 22 - Prob. 22.4LO Ch. 22 - Prob. 22.1SC Ch. 22 - Prob. 22.2SC Ch. 22 - Prob. 22.3SC Ch. 22 - Prob. 22.4SC Ch. 22 - Prob. 1CTQ Ch. 22 - Prob. 2CTQ

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Chapter 22 Solutions