Average cost will be a minimum at a level of firm output that is: - Greater...
Average cost will be a minimum at a level of firm output that is:
- Greater than where diminishing returns begin (answer)
Why? Please explain
Homework Answers
Answer
Diminishing returns means the marginal product decreases as the extra input is employed.
the average total cost is minimum where marginal cost cuts average total cost where MC is upward sloping.
Marginal cost =price of variable input /marginal product
The marginal product decreases as the diminishing returns begin where the MC is below ATC and as it increases it cuts the ATC because before the diminishing returns begin the MC is decreasing.
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Average cost will be a minimum at a level of firm output that
is:
- Greater...
(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...
The short-run average cost of producing a given level of output (a) is no greater than...
The short-run average cost of producing a given level of output (a) is no greater than the long-run average cost because in the long run an input which is fixed in the short run can be adjusted optimally (b) is not approximately constant near its minimum (c) does not depend on the output level in question (d) is no less than the long-run average cost because in the long run an input which is fixed in the short run can...
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...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
3. Let the average cost curve for any firm in an industryb AC 12 where Q is firm output so that the average cost for various levels of output is the following: Level of output of the firm Average...
3. Let the average cost curve for any firm in an industryb AC 12 where Q is firm output so that the average cost for various levels of output is the following: Level of output of the firm Average cost of the firm AC infinite AC# 24625 AC- 13.5 AC-10.625 АС. 10 AC# 11.5 AC-15 Q-0 Q#1 Q-2 Let inverse market demand be 12-Q. Is this industry a natural monopoly? Elaborate.
3. Let the average cost curve for any firm...
In the long run, a monopolistically competitive firm will not produce at the output level that...
In the long run, a monopolistically competitive firm will not produce at the output level that minimizes average cost because: Group of answer choices demand is horizontal. that would leave the firm with excess capacity. Price is greater than MR at that output level. MC is less than MR at that output level. MC is greater than MR at that output level.
A profit-maximizing firm with market power will always produce a level of output where a. demand...
A profit-maximizing firm with market power will always produce a level of output where a. demand is elastic. b. demand is inelastic. c. price is greater than average total cost. d. marginal revenue is greater than average total cost.
Most firms will eventually face increasing average costs as they try to increase output. The firm...
Most firms will eventually face increasing average costs as they try to increase output. The firm finds that each extra unit of output requires more inputs to produce than previous units, an outcome described as the law of diminishing marginal returns. The law of diminishing marginal returns states that as you try to expand output, your marginal productivity (the extra output associated with extra inputs) eventually declines The law of diminishing returns can limit the economies of scale and economies...
1.the curve connecting cost minimizing level of output is : what's the answer and why? a.typically...
1.the curve connecting cost minimizing level of output is : what's the answer and why? a.typically vertical b.typically downward sloping c. always a straight line d. typically horizontal e. called firm's expansion path 2.with a production function that exhibits decreasing returns to scale. a. the average cost curve will cut the marginal cost curve at the marginal cost curve 's minimum. b.the marginal cost curve will cut the average cost curve at the average cost curve 's minimum. c.price is...
Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles....
Figure 13-9
The figure below depicts average total cost functions for a firm
that produces automobiles.
Refer to Figure 13-9. At output levels greater
than N, the firm experiences
Group of answer choices
economies of scale.
diseconomies of scale.
minimum efficient scale.
constant returns to scale.
Average Total Cost ($) АТСр ATCA ATCO ATCW Quantity of Automobiles per day
(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...
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...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
3. Let the average cost curve for any firm in an industryb AC 12 where Q is firm output so that the average cost for various levels of output is the following: Level of output of the firm Average cost of the firm AC infinite AC# 24625 AC- 13.5 AC-10.625 АС. 10 AC# 11.5 AC-15 Q-0 Q#1 Q-2 Let inverse market demand be 12-Q. Is this industry a natural monopoly? Elaborate.
3. Let the average cost curve for any firm...
Most firms will eventually face increasing average costs as they try to increase output. The firm finds that each extra unit of output requires more inputs to produce than previous units, an outcome described as the law of diminishing marginal returns. The law of diminishing marginal returns states that as you try to expand output, your marginal productivity (the extra output associated with extra inputs) eventually declines The law of diminishing returns can limit the economies of scale and economies...
Figure 13-9
The figure below depicts average total cost functions for a firm
that produces automobiles.
Refer to Figure 13-9. At output levels greater
than N, the firm experiences
Group of answer choices
economies of scale.
diseconomies of scale.
minimum efficient scale.
constant returns to scale.
Average Total Cost ($) АТСр ATCA ATCO ATCW Quantity of Automobiles per day
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