What effect might a decrease in the  demand for high definition television have on the short-run  average total cost curve for this product ?

Q: Which of the following is true in the short run at the output level where average total cost is at…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Universal’s variable cost to rent a car is $15. Assume the fleet size is fixed at 21,666. How many…

A: Given information Universal's variable cost to rent a car is $15 Fleet size is fixed at 21,666 The…

Q: On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table.…

A: If Q=100 bikes are produced at a single plant, the short-run ATC is $440. In the long run, the…

Q: On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table.…

A: If it is producing Q=100 bikes in one factory, then its short-run ATC = $440. In the long run, the…

Q: Suppose a shoes factory makes 100 pairs of shoes. At this level of production, they have $25 in…

A: Output(Q)=100 units AVC(Q=100)=$25 ATC(Q=100)=$32 TFC(Q=100)=? We know that: Average Fixed Cost is…

Q: Why will firms in most markets be located at or close to the bottom of the long-run average cost…

A: In the long run, all the costs are the variable costs. In long run, costs are lower than that of in…

Q: The total cost of producing 25 tons of butter is 45000. If the average variable cost is $775, then…

A: TC(Total) is the cost which is incurred by a firm in producing some specific level of output. It is…

Q: Which of the following is true in the short run at the output level where average total cost is at…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Explain the relation between average variable cost and marginal cost for both the short-run and…

A: Cost Curves show the relation between the costs that a firm incur in the process of production and…

Q: The marginal cost curve: is a vertical line. generally rises at first and then declines as output…

A: Marginal cost is the cost of producing additional unit of output. The shape of marginal cost depends…

Q: total revenue (TR) and total cost (TC) if

A: If price is equal to AC then at this situation TR= TC ( since TR=AC×Q and TC=AC×Q )

Q: Write a short note on Law of diminishing returns – implications for the short-run cost curve

A: Law of diminishing return to scale implies that as the number of a variable input is raised keeping…

Q: At level of output, average fixed costs = $20, average variable costs = $10 and total costs = $900.…

A: Average total cost = Average fixed cost + Average variable costAverage total cost = Total cost /…

Q: Economies and diseconomies of scale explain: Group of answer choices the profit-maximizing level of…

A: Economies of scale are the point at which the expense per unit of creation (Average expense)…

Q: Explain and identify the relationship between total cost, average cost and marginal cost using…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: Suppose each firm of the industry has a short-run total cost curve of TC = 5+4q+q², where q is…

A: Total cost of production refers to the total monetary value incurred on fixed as well as variable…

Q: the short run, a firm's average variable cost will increase as its output increases because

A: The variable cost refers to the cost which changes with change in the level of output.  AVC = TVC/Q.

Q: On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table.…

A: Average Total Cost: Average total cost determines how much of a company's total costs are contained…

Q: Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He…

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

Q: Consider the following Table: Q TC 100 140 90 150 80 160 3 70 170 60 180 5 50 190 6. 40 200 30 210 8…

A: Average total cost or ATC is calculated by dividing total cost (TC) by quantity (Q). Marginal cost…

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: The four statements below describe properties of a firm's short run cost curves. Complete the…

A: Average cost is the sum of average fixed cost an average variable cost. It is a U-shaped curve.

Q: In the given figure, short-run cost curves are depicted. What role does the graph's Curve Y…

A: "Cost curves in economics represents a graph of the costs involved in the production process as a…

Q: total revenue (TR) and total variable cost

A:

Q: Rick's ski board factory has the Total Cost function: TC(Q)=0.02Q³ +300Q +200 where Q is the number…

A: The total cost function is the sum of the variable and the fixed cost. The variable cost is the cost…

Q: Graphs must display The Marginal Cost Curve is shaped like a Nike swoosh. The Marginal Cost Curve…

A: 1. The marginal cost is the cost that is caused to the firm through the increased production of the…

Q: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,…

A: Here, an improvement in the technology used, would decrease the cost and will shift the cost curve…

Q: Q50 The point of tangency between the short-run average total cost (SRATC) curve and the long-run…

A: Answer: The long-run average total cost curve is tangent to the minimum points of the short-run…

Q: Using the figure above, what is the total cost for the firm?

A: Total cost is the summation of total fixed cost and total variable cost. The average total cost to…

Q: Suppose a hotel exhibits constant returns to scale as it increases its output. If it increases  all…

A: Returns to scale is about the relationship between input and output. It refers to the amount of…

Q: On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table.…

A: Ike's Bike is a bicycle manufacturing firm.  Currently firm is using only one factory for…

Q: An increase in the firm's cost of a fixed input will in the long-run, cause the

A: An increase in the firm's cost of a fixed input will increase the fixed cost of firm. An increase in…

Q: What is the term for the lowest level of output at which a firm's goods are produced at minimum…

A: please find the answer below.

Q: Which of the following would shift a firm's short-run cost curves downward? a.an increase in excise…

A: The minimum cost impact of output changes for a specific plant size is referred to as a short-run…

Q: State whether the following describes MC (marginal cost), ATC (average total cost), AVC (average…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: A student has just written on an exam that, in the long run, fixed cost will make the average total…

A: Long run: Long run refers to the time period that necessary to increase the production capacity or…

Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…

A: The Long-run average cost curve is defined as a curve which portrays a firms lowest cost per unit at…

Q: On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table.…

A: Average Total Cost is obtained by dividing the total cost with the units of output.  Long Run…

Q: The average variable cost curve and the average total cost curve get closer to each other as output…

A: The average variable cost refers to the variable cost per unit. The average total cost is the…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.