A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of crop. If it had doubled its land and labor, production would have been 325,000 bushels. Does it have constant, decreasing, or increasing returns to scale?

Q: Explain how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

Q: The long-run is a period of time long enough so that all inputs, including facility and equipment,…

A: PLEASE FIND THE ANSWER BELOW.

Q: The table below shows the short run cost for producing bicycles. Complete all missing values in…

A:

Q: Abdullah has his own Auto Shop and produces one type of service. He spends 250 KD a month to rent a…

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Q: Specific subject: Microeconomics - Production and Costs Function  Comment on the following…

A: The cost that the firm incurs to produce one additional unit of the output is known as the marginal…

Q: The table below shows the short run cost for producing bicycles. Complete all missing values in…

A: The following cost calculations are done below:

Q: In a furniture market, if a furniture company is analyzing the short run total costs, one of the…

A: Here, it is given that a firm in the furniture market is analyzing its short-run total cost.…

Q: draw the marginal and average cost curves of companies p and q where Firm p: Cost= 4Q Firm q: Cost =…

A: Answer -    Average Cost = Average cost is cost per unit  Marginal cost = It is the cost a firm…

Q: A firm’s total cost of production is given by TC=100q+100q^2. Are the returns to scale increasing,…

A:

Q: Average fixed costs of production will rise at a fixed rate as more is produced. appear as a…

A: In microeconomics, the average fixed expense is the fixed expenses associated with the production…

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: Consider the following types of firms. For each one, the long-run average cost curve eventually…

A: The expenses that are being incurred for carrying out transactions of the business are known as…

Q: Three managers of APISYONADO Company are discussing a possible increase in production who do you…

A: MR.NADO is correct as according to him  the extra revenues from selling the additional perfume…

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

A: Economies of scale occur when the average total cost (ATC) decreases as output increases in the long…

Q: 35) What is the firm’s efficient scale?  A. the quantity of output that minimizes average total…

A: (35)  A firm's efficient scale implies the production of output such that it minimizes the average…

Q: The table below shows the short run cost for producing bicycles. Complete all missing values in…

A: Answer 1 To complete the above table we use the following formula Total Cost = Fixed cost + variable…

Q: If a firm quadruples (4x) in size and output triples(3x), what is the returns to scale?  a.…

A: The markets are the place where the buyers, and the sellers of the goods, services, and other…

Q: significant economies of scale are present, large firms will be much more efficient producers than…

A: Economies of scale are the cost advantages by large firms due to the scale of production.

Q: If the fixed cost of Alex’s engraving business is $100, and the variable cost of each engraving job…

A: The total cost refers to the sum of the fixed costs of production and the variable costs of…

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: What is the difference between production in the short run and production in the long run? Explain…

A: The short-run is a notion that states that at least one input is fixed while the others are variable…

Q: Average cost curves (except for average fixed cost) tends to be u-shaped , decreasing and then…

A: Marginal cost is nothing but the additional cost required to produce one extra unit while average…

Q: you increase the production to infinitely higher level , the average variable cost and average total…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

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: For the following industries, state whether the long-run average cost curve has an extended range…

A: Returns to scale is the quantitative change in outputs of an industry or firm in response to an…

Q: X and Y are factors of production. X's marginal product is 30 and Y's marginal product is 20. X=5…

A: Total cost is minimized when (MPx / Px) = (MPy / Py) Here, MPx / Px = 30/5 = 6 MPy / Py = 20 / 4 = 5…

Q: A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of…

A: By doubling the inputs that are employed in producing the good, will not increase the variable cost…

Q: Continuing to refer to Table 7.9 and Figure 7.7, compute the average total cost, average variable…

A: * SOLUTION :-    Given that ,

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: During the previous month, a firm produced 250 tablet devices at an average variable cost of $40 and…

A: Given:Average variable cost=$40 Average fixed cost=$10Total output=250 tablets

Q: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

Q: you assume that a firm has a U-shaped average cost curve, why would large and small firms have…

A: The economies and diseconomies of scale lead to the U shaped average cost curve.

Q: In the short run, which of the following costs will not change as output changes? marginal cost.…

A: The short run is a period of time in which at least one factor of production (input) is fixed, while…

Q: A firm produces identical outputs at two different plants. If the marginal cost at the first plant…

A: The firm seeks to maximize the profit. The profit is maximized where the MR=MC. Firm can use its…

Q: the main difference between the short run and the long run

A: Short run is a time period in which there are fixed costs and variable cost Fixed cost means the…

Q: Average fixed cost, average total cost a -Why does average fixed cost continuously fall as output…

A: Average fixed cost- It is the cost that is per unit of Total fixed cost. AFC=TFCQ Average total…

Q: What is the difference between short-run and long-run in production theory?  *Explain thoroughly*

A: Production is defined as the process in which factors of production or inputs are put to use in…

Q: Assume that in the short run a firm is producing 1,000 units of output, has average total costs of…

A: Here, total output given is 1,000 units. Average total cost is $100. Average total cost is defined…

Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: Firms are facing a lot of challenges when dealing with their costs of production. Analyze a fixed…

A: Fixed cost refers to the cost of production that the firm has to incur irrespective of output. This…

Q: The table shows the total product schedule of a firm that uses 1 sewing machine. Labor The firm…

A: Total Cost(TC) implies the cost incurred by the firms for the production of their product, and it…

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

A: Short-run period is that period of time in which a firm can change its level of output by only…

Q: True or False: For an increase in output, average costs change by more in the short-run than in the…

A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…