1 Discuss the nature of the “returns to scale” associated with production in the long-run, giving...
1 Discuss the nature of the “returns to scale” associated with production in the long-run, giving an explanation how average cost decreases, remains constant and increases and how they impact the output level.
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1 Discuss the nature of the “returns to scale” associated with
production in the long-run, giving...
3. How are increasing returns to scale for a long-run production function and a downward sloping...
3. How are increasing returns to scale for a long-run production function and a downward sloping long-nm Average Cost curve related? Explain the underlying economic reasoning clearly. (10)
Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of...
Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of output. b. is always equal to or greater than short-run average total cost. c. can be measured in the short-run. If a firm is producing the level of output at which long-run average cost equals long-run marginal cost, then a long-run marginal cost is at its minimum point b. long run average cost is at its minimum point. c long...
Economies of scale refers to when: In the long run when average total cost does not...
Economies of scale refers to when:
In the long run when average total cost does not depend on the
quantity of output, this is called:
Commodities:
We assume that in the long run in a perfectly competitive
market:
Multiple Choice an increase in the quantity of output increases average total cost in the long run. None are correct. average total cost does not depend on the quantity of output in the long run. an increase in the quantity of output...
13. As output (plant size) increases, economies of scale occur when the A) long-run average cost...
13. As output (plant size) increases, economies of scale occur when the A) long-run average cost increases. B) long-run average cost decreases. C) short-run average total cost decreases. D) long-run average cost stays constant 14. Economies of scale can occur as a result of which of the following? A) increasing marginal costs as the firm increases its size B) higher fixed cost as the firm increases its size C) management difficulties as the firm increases its size D) greater specialization...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of a. diseconomies of scale. b. diminishing marginal revenues. c. rising fixed costs. d. increasing marginal productivity of variable inputs. e. diminishing marginal returns. . If the long-run average cost of production falls as the firm increases its level of output, then the firm exhibits a. constant returns to scale. b. constant marginal costs. c. economies of scale. d. diseconomies of scale. e. diminishing...
LIIS IS dll ustry and the long run supply curve is_ horizontal 3a. Does "returns to...
LIIS IS dll ustry and the long run supply curve is_ horizontal 3a. Does "returns to scale" refer to the long or short run average cost curves? Rehirns ho scalssless the Doutput when All s are changed by the 3b. If returns to scale are increasing, what does this imply about average cost? 3c. If returns to scale are constant, what does this imply about average cost? 3d. If returns to scale are decreasing, what does this imply about average...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm experiences [ (Click to select) diseconomies of scale diminishing marginal returns increasing marginal returns b. The minimum efficient scale is the level of output produced by the smallest firm in the industry. smallest level of output at which a firm can produce. only level of output where long-run average total costs are minimized. smallest level of output needed to attain...
Economies of scale occur when: Select one: a. the long-run average cost rises as output increases. ...
Economies of scale occur when: Select one: a. the long-run average cost rises as output increases. b. the marginal cost falls as output increases. c. average fixed costs are constant. d. the long-run average cost falls as output increases
Refer to the Figure below. The production function of the firm displays constant returns to scale...
Refer to the Figure below. The production function of the firm
displays constant returns to scale when output is increased from
_____.
The following figure shows the long-run average cost curve of a
firm.
a) A to E
b) C to D
c) D to E
d) A to B
e) B to D
Price Long-run average cost 0 B C Quantity
These two question please Question 8 (1 point) When do constant returns to scale occur? when...
These two question please
Question 8 (1 point) When do constant returns to scale occur? when long-run total costs are constant as output increases when long-run average total costs are constant as output increases when the firm's long-run average-cost curve is falling as output increases when the firm's long-run average-cost curve is rising as output increases Figure 13-4 The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for...
3. How are increasing returns to scale for a long-run production function and a downward sloping long-nm Average Cost curve related? Explain the underlying economic reasoning clearly. (10)
Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of output. b. is always equal to or greater than short-run average total cost. c. can be measured in the short-run. If a firm is producing the level of output at which long-run average cost equals long-run marginal cost, then a long-run marginal cost is at its minimum point b. long run average cost is at its minimum point. c long...
Economies of scale refers to when:
In the long run when average total cost does not depend on the
quantity of output, this is called:
Commodities:
We assume that in the long run in a perfectly competitive
market:
Multiple Choice an increase in the quantity of output increases average total cost in the long run. None are correct. average total cost does not depend on the quantity of output in the long run. an increase in the quantity of output...
13. As output (plant size) increases, economies of scale occur when the A) long-run average cost increases. B) long-run average cost decreases. C) short-run average total cost decreases. D) long-run average cost stays constant 14. Economies of scale can occur as a result of which of the following? A) increasing marginal costs as the firm increases its size B) higher fixed cost as the firm increases its size C) management difficulties as the firm increases its size D) greater specialization...
LIIS IS dll ustry and the long run supply curve is_ horizontal 3a. Does "returns to scale" refer to the long or short run average cost curves? Rehirns ho scalssless the Doutput when All s are changed by the 3b. If returns to scale are increasing, what does this imply about average cost? 3c. If returns to scale are constant, what does this imply about average cost? 3d. If returns to scale are decreasing, what does this imply about average...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm experiences [ (Click to select) diseconomies of scale diminishing marginal returns increasing marginal returns b. The minimum efficient scale is the level of output produced by the smallest firm in the industry. smallest level of output at which a firm can produce. only level of output where long-run average total costs are minimized. smallest level of output needed to attain...
Refer to the Figure below. The production function of the firm
displays constant returns to scale when output is increased from
_____.
The following figure shows the long-run average cost curve of a
firm.
a) A to E
b) C to D
c) D to E
d) A to B
e) B to D
Price Long-run average cost 0 B C Quantity
These two question please
Question 8 (1 point) When do constant returns to scale occur? when long-run total costs are constant as output increases when long-run average total costs are constant as output increases when the firm's long-run average-cost curve is falling as output increases when the firm's long-run average-cost curve is rising as output increases Figure 13-4 The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for...
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