Homework Answers
The answer is option c- downward-sloping long-run average cost curves
Scale economies is an economic concept that describes output growth to spread the costs incurred during production over an increased production volume. When production increases, the fixed production cost per unit decreases. For example, if a pharmaceutical company develops a new treatment, it has fixed costs for research and development. Once the drug is considered viable and accepted for delivery, the drug manufacturer experiences economies of scale as the drug's development and sale increases. For each additional unit sold, the development expenditure per unit is decreasing.
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Increased specialization in large firms might lead to: O A. upward-sloping marginal cost curves. O B....
Firms with market power a. face downward sloping average cost curves. b. face downward sloping marginal...
Firms with market power a. face downward sloping average cost curves. b. face downward sloping marginal cost curves. c. produce where P = MR = MC. d. maximize profit but fail to maximize social surplus.
For any firm, what is the long-run average cost curve? O A A downward sloping line...
For any firm, what is the long-run average cost curve? O A A downward sloping line o B Afunction which shows the lowest average cost of producing any output level 10 c The same as the long-run marginal cost curve O D Upward sloping at all levels of output
2. Consider a downward-sloping market demand and an upward-sloping marginal cost. For each of the following...
2. Consider a downward-sloping market demand and an upward-sloping marginal cost. For each of the following situations, show the Social Marginal Benefit and Social Marginal Cost curves and explain whether the presence of the externality leads to a monopoly equilibrium with too much or too little production relative to the socially optimal outcome. (a) A negative externality associated with production (b) A negative externality associated with consumption (c) A positive externality associated with consumption.
In a constant-cost industry each firm's marginal cost curve is upward sloping, though all the firms...
In a constant-cost industry each firm's marginal cost curve is upward sloping, though all the firms together (the industry) have a horizontal supply curve. Carefully demonstrate and explain how this can occur.
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is perfectly vertical. maybe downward or upward sloping, depending upon the type of product offered for sale. In the short run, the best policy for a perfectly competitive firm is to Question 17 options: shut down its operation if the price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its...
In the long run firms in monopolistically competitive markets operate O A. with excess capacity because...
In the long run firms in monopolistically competitive markets operate O A. with excess capacity because they face downward-sloping demand curves. O B. at optimal capacity because they have perfectly elastic demand curves. O c. with excess capacity because they face perfectly elastic demand curves. D. at optimal capacity because they face downward-sloping demand curves. In the long run, firms in monopolistically competitive markets operate O A. with excess capacity because they face downward-sloping demand curves O B. at optimal...
A perfectly elastic demand curve is: Select one: O a. upward sloping b. downward sloping Oc....
A perfectly elastic demand curve is: Select one: O a. upward sloping b. downward sloping Oc. horizontal O d. vertical Answers Jump to
42. In an industry where firms experience internal scale economies, we wong-run Ousu of production will...
42. In an industry where firms experience internal scale economies, we wong-run Ousu of production will depend on: A) individual firms' fixed costs. B) the size of the labor force. C) whether the country engages in intra-industry trade. D) the size of the market. E) whether the country engages in inter-industry trade. 43. In the model of monopolistic competition, if firms have average cost curves, then opening trade will the total number of firms and the average price. A) downward...
The long-run supply curve for a perfectly competitive, constant-cost industry O is horizontal at minimum ATC....
The long-run supply curve for a perfectly competitive, constant-cost industry O is horizontal at minimum ATC. O is upward-sloping. O is horizontal at minimum AVC. O is found by adding up the marginal cost curves for all firms in the industry. As more firms enter the market: O the short-run market demand curve shifts to the left. O the short-run market supply curve shifts to the right. O the short-run market supply curve shifts to the left. O the short-run...
.Question Completion Status QUESTION 11 Suppose a firm doubles its employment of all inptuts in the long run. If th...
.Question Completion Status QUESTION 11 Suppose a firm doubles its employment of all inptuts in the long run. If this action more than doubles the amount of capital produced, then this firm is experiencing O Increasing returns to scale diminishing marginal returns o technological progress O positive marginal revenue QUESTION 12 When input prices are fixed, decreasing returns to scale implies that the long run average cost curve is downward sloping O horizontal upward sloping O Ushaped QUESTION 13 If...
For any firm, what is the long-run average cost curve? O A A downward sloping line o B Afunction which shows the lowest average cost of producing any output level 10 c The same as the long-run marginal cost curve O D Upward sloping at all levels of output
2. Consider a downward-sloping market demand and an upward-sloping marginal cost. For each of the following situations, show the Social Marginal Benefit and Social Marginal Cost curves and explain whether the presence of the externality leads to a monopoly equilibrium with too much or too little production relative to the socially optimal outcome. (a) A negative externality associated with production (b) A negative externality associated with consumption (c) A positive externality associated with consumption.
In the long run firms in monopolistically competitive markets operate O A. with excess capacity because they face downward-sloping demand curves. O B. at optimal capacity because they have perfectly elastic demand curves. O c. with excess capacity because they face perfectly elastic demand curves. D. at optimal capacity because they face downward-sloping demand curves. In the long run, firms in monopolistically competitive markets operate O A. with excess capacity because they face downward-sloping demand curves O B. at optimal...
A perfectly elastic demand curve is: Select one: O a. upward sloping b. downward sloping Oc. horizontal O d. vertical Answers Jump to
42. In an industry where firms experience internal scale economies, we wong-run Ousu of production will depend on: A) individual firms' fixed costs. B) the size of the labor force. C) whether the country engages in intra-industry trade. D) the size of the market. E) whether the country engages in inter-industry trade. 43. In the model of monopolistic competition, if firms have average cost curves, then opening trade will the total number of firms and the average price. A) downward...
The long-run supply curve for a perfectly competitive, constant-cost industry O is horizontal at minimum ATC. O is upward-sloping. O is horizontal at minimum AVC. O is found by adding up the marginal cost curves for all firms in the industry. As more firms enter the market: O the short-run market demand curve shifts to the left. O the short-run market supply curve shifts to the right. O the short-run market supply curve shifts to the left. O the short-run...
.Question Completion Status QUESTION 11 Suppose a firm doubles its employment of all inptuts in the long run. If this action more than doubles the amount of capital produced, then this firm is experiencing O Increasing returns to scale diminishing marginal returns o technological progress O positive marginal revenue QUESTION 12 When input prices are fixed, decreasing returns to scale implies that the long run average cost curve is downward sloping O horizontal upward sloping O Ushaped QUESTION 13 If...
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