5. In the short run, total costs of production are usually higher than in the long...
5. In the short run, total costs of production are usually higher than in the long run. Why?
Homework Answers
In the short run total cost is the sum of fixed costs and variable costs.In the long run, however,there are no fixed costs.
So,the total cost is higher in the short run than the long run.
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5. In the short run, total costs of production are usually
higher than in the long...
. Define and explain the difference between the long run and the short-run production functions. Why...
. Define and explain the difference between the long run and the short-run production functions. Why are short-run costs higher than costs in the long run? Why are the short-run average and marginal cost curves U shaped? What generates a U shape for the long-run average and marginal cost curves?
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph...
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph that shows the relationship between maturity and interest rates for U.S. Government’s borrowings (Treasuries) is called “term structure of the interest rates” or “the yield curve”. Shape of the yield curve is often used by economists to forecast future status of the economy 1. Discuss why long-term rates are usually higher than short-term rates (upward yield curve) 2. Discuss under what economic conditions long-term...
5. Costs in the short run versus in the long run
5. Costs in the short run versus in the long runTke's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory: However, it is considering expanding of production if it uses one, two, or three factories. (Notes Q equais the total quantity of bikes produced by all factories.)
Define short run and long run in microeconomics. Explain how short-run and long-run average total costs...
Define short run and long run in microeconomics. Explain how short-run and long-run average total costs (ATC) differ.
2. Short-run versus long-run costs and expenditures Aa Aa The following isoquants depict the technologically efficient...
2. Short-run versus long-run costs and expenditures Aa Aa The following isoquants depict the technologically efficient bundles of labor and capital for producing 100 and 150 units of output (labeled IQ (Q - 100), and IQ IQ - 150), respectively). Suppose the firm is initially using the cost-minimizing bundle of labor and capital for producing 100 units of output, represented by point A. T XL- HO ---- XT X JQ10 - 1501 - 1010 - 1001 A 0 10 20...
1. (5 marks) If an economy is in long-run equilibrium, then why is the short-run market...
1. (5 marks) If an economy is in long-run equilibrium, then why is the short-run market supply function not a horizontal line in the perfect competitive market? 2. (5 marks) Why is the equilibrium price in the monopolist market higher than the one in the perfectly competitive market although the condition MC=MR holds in both markets?
5. Costs in the short run versus in the long run Ike's Bikes is a major...
5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of...
5. Costs in the short run versus in the long run Ike's Bikes is a major...
5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of...
5. Costs in the short run versus in the long run Ike’s Bikes is a major...
5. Costs in the short run versus in the long
run
Ike’s Bikes is a major manufacturer of bicycles. Currently, the
company produces bikes using only one factory. However, it is
considering expanding production to two or even three factories.
The following table shows the company’s short-run average total
cost (SRATC) each month for various levels of production if it uses
one, two, or three factories. (Note: Q equals the total quantity of
bikes produced by all factories.)
Suppose Ike’s...
In the short run, average total cost is less than average variable cost. sometimes higher and...
In the short run, average total cost is less than average variable cost. sometimes higher and sometimes lower than average variable cost. higher than average variable cost. equal to average variable cost. QUESTION 4 1 pc If, in the short run, the level of output is zero, which of the following statement is TRUE? Total variable cost is zero but total cost equals total fixed cost, and both of the latter exceed zero. Total cost and total fixed cost graphs...
5. Costs in the short run versus in the long runTke's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory: However, it is considering expanding of production if it uses one, two, or three factories. (Notes Q equais the total quantity of bikes produced by all factories.)
2. Short-run versus long-run costs and expenditures Aa Aa The following isoquants depict the technologically efficient bundles of labor and capital for producing 100 and 150 units of output (labeled IQ (Q - 100), and IQ IQ - 150), respectively). Suppose the firm is initially using the cost-minimizing bundle of labor and capital for producing 100 units of output, represented by point A. T XL- HO ---- XT X JQ10 - 1501 - 1010 - 1001 A 0 10 20...
1. (5 marks) If an economy is in long-run equilibrium, then why is the short-run market supply function not a horizontal line in the perfect competitive market? 2. (5 marks) Why is the equilibrium price in the monopolist market higher than the one in the perfectly competitive market although the condition MC=MR holds in both markets?
5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of...
5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of...
5. Costs in the short run versus in the long
run
Ike’s Bikes is a major manufacturer of bicycles. Currently, the
company produces bikes using only one factory. However, it is
considering expanding production to two or even three factories.
The following table shows the company’s short-run average total
cost (SRATC) each month for various levels of production if it uses
one, two, or three factories. (Note: Q equals the total quantity of
bikes produced by all factories.)
Suppose Ike’s...
In the short run, average total cost is less than average variable cost. sometimes higher and sometimes lower than average variable cost. higher than average variable cost. equal to average variable cost. QUESTION 4 1 pc If, in the short run, the level of output is zero, which of the following statement is TRUE? Total variable cost is zero but total cost equals total fixed cost, and both of the latter exceed zero. Total cost and total fixed cost graphs...
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