Homework Answers
7.
As the ATC is increasing when output is increased from 2000 to 4000, therefore firm is experiencing diseconomies of scale
Third option is correct
8.
Firm is experiences economies of scale when ATC decreases when output is increased
From Graph, when output is increased from Q1 to Q2, ATC decreases, so firm experiences economies of scale
Last option is correct
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Question 7 1 pts Suppose that a firm's long-run average total costs of producing small commuter...
all of them Question 7 (1 point) If the long-run average cost is upward sloping, the...
all of them
Question 7 (1 point) If the long-run average cost is upward sloping, the firm is experiencing decreasing returns diseconomies of scale Oincreasing costs all of the above none of the above Question 8 (1 point) A production function in economics means any function performed by an employee when producing output the various functions performed by all employees when producing output the function performed by the person in charge of the production process the relationship between inputs and...
6. Long-run cost relationships The following graph shows the short-run average total cost curves and the...
6. Long-run cost relationships The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average cost curve (LRAC); for example, Q1 marks the point of tangency between ATC, and LRAC. The orange point on ATC indicates the firm's current output level in the short run (Qs). ATC LRAC ATC ATC, COST...
Question 10 Refer to the following graph to answer the questions that follow. The average total...
Question 10
Refer to the following graph to answer the questions that
follow.
The average total cost (ATC) and average variable cost (AVC)
converge as the level of output produced increases because:
the firm is able to purchase more capital and exploit economies
of scale.
the firm experiences gains in productivity from employee
specialization.
average total cost decreases as output increases.
average fixed cost decreases as output increases.
the firm is able to drive its competitors out of business by...
1) The above figure definitely shows a) a long-run equilibrium for a monopolistically competitive firm. b)...
1) The above figure definitely shows
a) a long-run equilibrium for a monopolistically competitive
firm.
b) an industry with few firms.
c) a long-run equilibrium for a perfectly competitive firm.
d) a long-run equilibrium for a perfectly competitive market.
2) The firm in the above figure has a markup of ________ per
meal.
a) $0
b) $4
c) $8
d) $10
3) According to the graph bellow:
Q1 to Q2 // Q2 to Q3 // Q4 to Q5
a) The...
Refer to the following table. What is the average variable cost of producing three units of...
Refer to the following table. What is the average variable cost of producing three units of the good? Output Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 1 — — — — — — — 2 — — $600 — — — — 3 — — — — ????? — $20 4 — $440 — — — — — 5 $500 — — — — — — a. $20...
Question 3 1 pts Suppose that a firm is producing in the short run with output...
Question 3 1 pts Suppose that a firm is producing in the short run with output given by: Q = 50L - 50L? The firm hires labor at a wage of $50 per hour and sells the good in a competitive market at P = $10 per unit. Find the firm's optimal use of labor. Enter as a value. • Previous Nam.
8:587 18:26:20 Exit D 24. The figure below shows short-run average total cost curves for a...
8:587 18:26:20 Exit D 24. The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use. Price ATC, ATC ATC Q, Q.QQQQQ Quantity Refer to the figure above. Between the output quantity QA and QC, the long-run average total cost curve of the firm exhibits constant returns to scale diminishing marginal product diseconomies of scale economies of scale
The graph shows a firm's average total cost (ATC) and marginal cost (MC) curves. At what...
The graph shows a firm's average total cost (ATC) and marginal cost (MC) curves. At what output level does the firm have economies of scale? 12 11 10 MC ATC 9 8 Price $/Q 4 3 N 14 16 15 0 12 13 10 9 8 7 6 4 5 3 2 0 Quantity Quantit OQ > 4 OQ < 4 OQ> 8 OQ < 8
Mankiw, page 265, question 7. Your cousin Vinnie owns a painting company with fixed costs of...
Question 1Mankiw, page 265, question 7. Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs. Calculate average fixed cost (AFC), average variable cost, (AVC) and average total cost (ATC) for each quantity. Note: Recall that • AFC = FC/Q • AVC = VC/Q • ATC = TC/Q or ATC = AFC + AVC where TC = FC + VC I. What is AFC when output is Q = 2? II. What is AVC when output is...
Table 13-16 Listed in the table are the long-run total costs for three different firms. Output...
Table 13-16 Listed in the table are the long-run total costs for three different firms. Output Size 1 Unit 2 Units 3 Units 4 Units 5 Units Firm A $100 $110 $120 $130 $140 Firm B $100 $200 $300 $400 $500 Firm C $100 $300 $600 $1,000 $1,500 Refer to Table 13-16. Firm C is experiencing economies of scale. True False
all of them
Question 7 (1 point) If the long-run average cost is upward sloping, the firm is experiencing decreasing returns diseconomies of scale Oincreasing costs all of the above none of the above Question 8 (1 point) A production function in economics means any function performed by an employee when producing output the various functions performed by all employees when producing output the function performed by the person in charge of the production process the relationship between inputs and...
6. Long-run cost relationships The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average cost curve (LRAC); for example, Q1 marks the point of tangency between ATC, and LRAC. The orange point on ATC indicates the firm's current output level in the short run (Qs). ATC LRAC ATC ATC, COST...
Question 10
Refer to the following graph to answer the questions that
follow.
The average total cost (ATC) and average variable cost (AVC)
converge as the level of output produced increases because:
the firm is able to purchase more capital and exploit economies
of scale.
the firm experiences gains in productivity from employee
specialization.
average total cost decreases as output increases.
average fixed cost decreases as output increases.
the firm is able to drive its competitors out of business by...
1) The above figure definitely shows
a) a long-run equilibrium for a monopolistically competitive
firm.
b) an industry with few firms.
c) a long-run equilibrium for a perfectly competitive firm.
d) a long-run equilibrium for a perfectly competitive market.
2) The firm in the above figure has a markup of ________ per
meal.
a) $0
b) $4
c) $8
d) $10
3) According to the graph bellow:
Q1 to Q2 // Q2 to Q3 // Q4 to Q5
a) The...
Question 3 1 pts Suppose that a firm is producing in the short run with output given by: Q = 50L - 50L? The firm hires labor at a wage of $50 per hour and sells the good in a competitive market at P = $10 per unit. Find the firm's optimal use of labor. Enter as a value. • Previous Nam.
8:587 18:26:20 Exit D 24. The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use. Price ATC, ATC ATC Q, Q.QQQQQ Quantity Refer to the figure above. Between the output quantity QA and QC, the long-run average total cost curve of the firm exhibits constant returns to scale diminishing marginal product diseconomies of scale economies of scale
The graph shows a firm's average total cost (ATC) and marginal cost (MC) curves. At what output level does the firm have economies of scale? 12 11 10 MC ATC 9 8 Price $/Q 4 3 N 14 16 15 0 12 13 10 9 8 7 6 4 5 3 2 0 Quantity Quantit OQ > 4 OQ < 4 OQ> 8 OQ < 8
Question 1Mankiw, page 265, question 7. Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs. Calculate average fixed cost (AFC), average variable cost, (AVC) and average total cost (ATC) for each quantity. Note: Recall that • AFC = FC/Q • AVC = VC/Q • ATC = TC/Q or ATC = AFC + AVC where TC = FC + VC I. What is AFC when output is Q = 2? II. What is AVC when output is...
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