Economies of scale are when long-run costs are falling, so do day-to-day costs (like labor) really...
Economies of scale are when long-run costs are falling, so do day-to-day costs (like labor) really have an effect on the long run since they are always paid in the short run? Why or why not?
Homework Answers
It can be mentioned that day to day costs have an effect in the long run this is because of the fact that in the long run what happens is the input factors get to adjust themselves in terms of cost as a result of which the costs can go up or go down. If the cost go down in the productivity level go up for each input then the economies of scale can be high when compared to the case where costs go up and therefore in the long run the daily costs also have a role to play in determining the level of economies of scale where it can continuously change in the short run but settle at a point in the long run and therefore the given statement can be agreed
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Economies of scale are when long-run costs are falling, so do
day-to-day costs (like labor) really...
What are economies of scale and why are such economies available only in the long run?...
What are economies of scale and why are such economies available only in the long run? (in about 600-800 words giving references) Since economies of scale exist, why do long-run marginal costs increase, ultimately, as output increases? (in about 600-800 words giving references)
Since economies of scale exist, why do long-run marginal costs increase, ultimately, as output increases? (in about 600-...
Since economies of scale exist, why do long-run marginal costs increase, ultimately, as output increases? (in about 600-800 words giving references)
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...
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...
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
(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...
Part 1: When a firm operates with economies of scale, average production costs: 1) rise when...
Part 1:
When a firm operates with economies of scale, average production
costs:
1) rise when the firm gets larger.
2) fall as the firm gets larger.
3) fall as the firm gets smaller.
4) are unaffected by firm size.
Part 2:
“U-shaped” long-run average cost curves show that as firms get
larger, they usually experience:
1) economies of scale.
2) constant returns to scale.
3) diseconomies of scale.
4) a, b, and c, in that order.
Part 3:
This...
5:42 luET 09. Which statement is true? A. Economies of scale are more common when Q...
5:42 luET 09. Which statement is true? A. Economies of scale are more common when Q is low and occur when increasing production lowers ATC as for natural monopolies. B. Diseconomies of scale are more common when Q is high and occur when increasing production decreases ATC as for natural monopolies. C. Economies of scale are more common when Q is high and occur when increasing production increases ATC as in a perfect competition framework. D. Diseconomies of scale are...
In the long run a company that produces and sells pizzas incurs total costs of $1,050...
In the long run a company that produces and sells pizzas incurs total costs of $1,050 when output is 90 pizzas and $1,200 when output is 100 pizzas. The pizza company exhibits a. diseconomies of scale because average total cost is rising as output rises. b. diseconomies of scale because total cost is rising as output rises. c. economies of scale because average total cost is falling as output rises. d. economies of scale because total cost is rising as...
Economies of scale occur when Select one: a. long-run average total costs rise as output increases....
Economies of scale occur when Select one: a. long-run average total costs rise as output increases. b. long-run average total costs fall as output increases. c. long-run average total costs are constant. NumberofWorkers Output FixedCost VariableCost TotalCost 0 0 $50 $0 1 90 $50 $20 $70 2 170 $50 $40 3 230 $50 $60 $110 4 240 $80 $130 Refer to Table 13-3. If the firm produces an output of 170 units, what is the total cost? Select one: a....
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...
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...
(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...
Part 1:
When a firm operates with economies of scale, average production
costs:
1) rise when the firm gets larger.
2) fall as the firm gets larger.
3) fall as the firm gets smaller.
4) are unaffected by firm size.
Part 2:
“U-shaped” long-run average cost curves show that as firms get
larger, they usually experience:
1) economies of scale.
2) constant returns to scale.
3) diseconomies of scale.
4) a, b, and c, in that order.
Part 3:
This...
5:42 luET 09. Which statement is true? A. Economies of scale are more common when Q is low and occur when increasing production lowers ATC as for natural monopolies. B. Diseconomies of scale are more common when Q is high and occur when increasing production decreases ATC as for natural monopolies. C. Economies of scale are more common when Q is high and occur when increasing production increases ATC as in a perfect competition framework. D. Diseconomies of scale are...
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