Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.

Q: 4. Select the production function with increasing returns to scale: A. q = (L+ 1)K B. q = (VI + VR)²…

A: To get which function has what type of scale we will scaled up the factors of production by 2 to…

Q: (5) Consider the Cobb-Douglas production function f(x1, x2) = Axqx½. (a) For what valucs of a and b…

A: ANS When the rise in the amount of output(o/p) is more than the rise in the amount of input (i/p)…

Q: The question is based on the following table, which provides information on the production of a…

A: It refers to the change in the total product when additional units of input are added. Marginal…

Q: Quantity 1 2 4 5 6 7 Firm A 30 60 90 120 150 Firm B 75 85 90 95 100 Firm C 40 65 90 115 140 170…

A: Economies of scale are the benefits that, in some cases, can happen because of expanding the size 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: WW is a small automobile manufacturer.  The table below shows WW’s long-run average total cost:…

A: Theory and definitions- There are three types of returns to scale- Economies of scale The constant…

Q: 16. If a firm increases both its plant and labor by the same pa the firm is experiencing A.…

A: The changes in long-run average cost with respect to output decide whether the firm is experiencing…

Q: Discuss the issue of “achievement of the economy of scale” and how it could help in company’s…

A: Economy of scale increases the profits of company. It is because cost would be lower and revenue…

Q: "returns to scale"

A: Law of variable production states that if we keep one factor fixed and keep increasing the other,…

Q: You are interested in starting a used car dealership in your country. Provide examples with…

A: Answer 1 :

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

A: Economies of scale apply to the property that as the quantity of product increases, the long-run…

Q: 8. Why is the Minimum Average Total Cost and Efficient Scale important?

A: Average Total Cost : The average cost or average total cost is per unit cost incurred by the firm in…

Q: 27) What do we know about fixed costs?  A. They are incurred only when production is at capacity…

A: The firms operating in a market incur two types of costs, fixed costs, and variable costs. Variable…

Q: 4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $250 and the…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost remains constant and does not…

Q: Question 5 Which of the following production functions exhibit increasing return to scale?…

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

Q: which are two (2) sources of internal economies of scale for a business organization, please…

A: A microeconomic concept that relates to elements that lower production costs while increasing output…

Q: Define Minimum Average Cost and Efficient Scale.

A: Minimum Average  Cost :The average cost or average total cost is per unit cost incurred by the firm…

Q: please help

A: Production technologies or production function defines a relationship between the output and inputs.…

Q: b) Discuss and explain the concept of positive return to scale showing it relationship with the…

A: Output TC of Firm 1 TC of Firm 2 TC of Firm 3 AC of Firm 1 AC of Firm 2 AC of Firm 3 1 100 25 50…

Q: 2. Derive the long run average total cost curve and show minimum efficient scale on it.

A: Total Cost curve(TC) is the cost that is incurred in the production of goods in firms. It consists…

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

A: Answer - Need to find - The statement is true or false Given in the question - If a firm has…

Q: Do the following production functions have increasing, decreasing, or constant returns to scale?…

A:

Q: 4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $200 and the…

A: * SOLUTION :-  By using the formulas we write the table  AFC=FC/Q AVC=VC/Q ATC=AFC+AVC

Q: A_15, When returns to scale are decreasing, total output a. Increases b. Decreases c. Does not…

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

Q: Distinguish between input and output.

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

Q: Diseconomies of scale are: [11.4.4 Diseconomies of Scale: An Upward-Sloping LRATC Curve] A instances…

A: There are two type of scale in economies - 1) economies of scale  2) diseconomies of scale  In short…

Q: 6. Which one of the following production functions represents an increasing returns to scale…

A: Returns to scale refer to describe the rate at which output rises as one rises the scale at which…

Q: ased on your own personal observations of the college, do you think the low-income Community College…

A: Economies of scale refer to a situation where the already existing firm/ organization/ institution…

Q: statements is true or false and explain If marginal cost is larger than average cost, average cost…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: QUESTION 1 Table 13-16 Average Average Variable Marginal Fixed Variable Quantity Total Cost Fixed…

A: In economics, average variable cost is a firm's variable costs divided by the quantity of output…

Q: QUESTION 25 Which of the following production functions exhibits constant returns to scale? OA Y=KL…

A:

Q: QUESTION 5 20 poin Match each of the following terms and descriptions Constant returns to scale when…

A: Economies of scale occurs when long run average cost falls as production increases. Diseconomies of…

Q: As the level of production increases in the short-run, the Average Variable Cost (AVC) curve…

A: In a market, a firm faces different cost curves in the short-run and in the long-run because there…

Q: Question 5 Which of the following production functions exhibit increasing return to scale?…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 1. Do the following production functions exhibit increasing, constant of decreasing returns to scale…

A: "A production function states the relationship between factor inputs used and the amount of output…

Q: Critically demonstrate the key difference between the two economies of scale.

A: Economies of scale are the cost advantages that businesses gain as a result of their size, and are…

Q: How does fixed cost affect marginal cost? Why is this relationship important?

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

Q: MCQ: What do you understand by “diseconomies of scale”? Decrease in costs as we increase the…

A: Diseconomies of scale generally appear when there are negative returns due to increasing the scale…

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: 10. Explain why economies of scale is important

A: Economies of scale: It refers to the reduced cost per unit of output of a commodity because of the…