Homework Answers
Ans) the correct option is a) AC decreases
Since the production function has increasing returns to scale meaning when the inputs are increased by one unit, the output is increased by more than two times. So average cost declines as more output is produced.
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Question 20 1 pts If Q = 2L +3K2, what happens to average cost as the...
z Instructions Question 20 If Q = 0.5L +0.2K, what happens to average cost as the...
z Instructions Question 20 If Q = 0.5L +0.2K, what happens to average cost as the firm expands (produces more)? AC decreases AC stays constant AC reaches its maximum AC increases
Question 20 If Q-0.5L +0.2K, what happens to average cost as the firm expands (produces more)?...
Question 20 If Q-0.5L +0.2K, what happens to average cost as the firm expands (produces more)? CAC increases CAC decreases CAC reaches its maximum CAC stays constant « Previous Saving. Sul ODD F4
If Q = 2LK2 , what happens to average cost as the firm expands (produces more)?...
If Q = 2LK2 , what happens to average cost as the firm expands (produces more)? AC reaches its maximum AC increases AC decreases AC stays constant
A firm's learning curve, which shows the relationship between average cost and cumulative output (the sum...
A firm's learning curve, which shows the relationship between average cost and cumulative output (the sum of its output since the firm started producing), is AC = a + bn", where AC is its average cost; N is its cumulative output; and a, b, and r are constants. What is the firm's AC if r=0? If r= 0, then AC = a + b. (enter formula) If r= 0, what can you say about the firm's ability to learn by...
Question 7 1 pts Suppose that a firm's long-run average total costs of producing small commuter...
Question 7 1 pts Suppose that a firm's long-run average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing O specialization O constant returns to scale. Odiseconomies of scale. O economies of scale. Question 8 1 pts Figure 13-10 ATC ATC a, Q, O Q. Quantity of Output Refer to Figure 13-10. The firm experiences economies of scale if it changes its level...
1 pts D Question 4 The reaction shown is at equilibrium. If a student adds more...
1 pts D Question 4 The reaction shown is at equilibrium. If a student adds more X to the system, what happens Immediately (at that Instant) to Q and K? X+ YZ Both decrease Both increase OQ gets larger and K gets smaller. Ok gets larger and gets smaller. Kremains constant and increases Okremains constant and Q decreases.
Question 1. Cost concepts The concepts of "marginal cost" (MC) and "average cost" (AC) are routinely...
Question 1. Cost concepts The concepts of "marginal cost" (MC) and "average cost" (AC) are routinely used in economics. (a) Suppose the total cost function is C(q) = 9+0.250, where is the output level of the firm. Derive the marginal cost and the average cost implied by this cost function. Provide a diagram (with q on the horizontal axis) to illustrate the shape of these MC and AC functions. (b) What does returns to scale mean? Does a firm with...
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 6 What happens to the electric field in the capacitor as the charge, Q, stored...
QUESTION 6 What happens to the electric field in the capacitor as the charge, Q, stored in it increases? The field increases as Q. The field decreases as 1/Q. The field increases as Q2. The field decreases as 17Q2. QUESTION 7 A parallel plate capacitor Creates an electric field by pulling electrons off of atoms in the air Creates a uniform electric field between two oppositely charged plates Creates a uniform electric field between two plates with the same sign...
Question 9 6 pts The chart below shows production costs including fixed costs, variable costs, and...
Question 9 6 pts The chart below shows production costs including fixed costs, variable costs, and total costs, marginal costs, avg. variable costs and avg. total costs, for a firm in the short run. Use this chart to answer the following questions. Quantity VC MC AVC FC SO TC 50 ATC 0 1 10 10 SO 2 3 A 100 110 50 20 4 50 130 B 5 С 120 40 34 The "A" in the chart is equal to...
z Instructions Question 20 If Q = 0.5L +0.2K, what happens to average cost as the firm expands (produces more)? AC decreases AC stays constant AC reaches its maximum AC increases
Question 20 If Q-0.5L +0.2K, what happens to average cost as the firm expands (produces more)? CAC increases CAC decreases CAC reaches its maximum CAC stays constant « Previous Saving. Sul ODD F4
A firm's learning curve, which shows the relationship between average cost and cumulative output (the sum of its output since the firm started producing), is AC = a + bn", where AC is its average cost; N is its cumulative output; and a, b, and r are constants. What is the firm's AC if r=0? If r= 0, then AC = a + b. (enter formula) If r= 0, what can you say about the firm's ability to learn by...
Question 7 1 pts Suppose that a firm's long-run average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing O specialization O constant returns to scale. Odiseconomies of scale. O economies of scale. Question 8 1 pts Figure 13-10 ATC ATC a, Q, O Q. Quantity of Output Refer to Figure 13-10. The firm experiences economies of scale if it changes its level...
1 pts D Question 4 The reaction shown is at equilibrium. If a student adds more X to the system, what happens Immediately (at that Instant) to Q and K? X+ YZ Both decrease Both increase OQ gets larger and K gets smaller. Ok gets larger and gets smaller. Kremains constant and increases Okremains constant and Q decreases.
Question 1. Cost concepts The concepts of "marginal cost" (MC) and "average cost" (AC) are routinely used in economics. (a) Suppose the total cost function is C(q) = 9+0.250, where is the output level of the firm. Derive the marginal cost and the average cost implied by this cost function. Provide a diagram (with q on the horizontal axis) to illustrate the shape of these MC and AC functions. (b) What does returns to scale mean? Does a firm with...
QUESTION 6 What happens to the electric field in the capacitor as the charge, Q, stored in it increases? The field increases as Q. The field decreases as 1/Q. The field increases as Q2. The field decreases as 17Q2. QUESTION 7 A parallel plate capacitor Creates an electric field by pulling electrons off of atoms in the air Creates a uniform electric field between two oppositely charged plates Creates a uniform electric field between two plates with the same sign...
Question 9 6 pts The chart below shows production costs including fixed costs, variable costs, and total costs, marginal costs, avg. variable costs and avg. total costs, for a firm in the short run. Use this chart to answer the following questions. Quantity VC MC AVC FC SO TC 50 ATC 0 1 10 10 SO 2 3 A 100 110 50 20 4 50 130 B 5 С 120 40 34 The "A" in the chart is equal to...
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