(4) (a)Graphically show all long-run cost functions.Define the firm’s supply function in the long-run.(b)Discuss a few...
(4) (a)Graphically show all long-run cost functions.Define the firm’s supply function in the long-run.(b)Discuss a few sources of Economies of Scale. (c)What would happen to the long-run average cost function with process-innovation or product-innovation or both?
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(4) (a)Graphically show all long-run cost functions.Define the
firm’s supply function in the long-run.(b)Discuss a few...
A firm’s marginal cost decreases when it has _______ and its long run average total cost...
A firm’s marginal cost decreases when it has _______ and its long run average total cost decreases when it has _______. A. diminishing marginal returns, decreasing returns to scale B.diminishing marginal returns, increasing returns to scale C. diminishing marginal returns, economies of scope D.increasing marginal returns, increasing returns to scale E. increasing marginal returns, decreasing returns to scale
A firm’s marginal cost decreases when it has _______ and its long run average total cost...
A firm’s marginal cost decreases when it has _______ and its long run average total cost decreases when it has _______. A. diminishing marginal returns, decreasing returns to scale B.diminishing marginal returns, increasing returns to scale C. diminishing marginal returns, economies of scope D.increasing marginal returns, increasing returns to scale E. increasing marginal returns, decreasing returns to scale increasing returns to scale increasing marginal returns, decreasing returns to scale
all of them Question 7 (1 point) If the long-run average cost is upward sloping, the...
all of them
Question 7 (1 point) If the long-run average cost is upward sloping, the firm is experiencing decreasing returns diseconomies of scale Oincreasing costs all of the above none of the above Question 8 (1 point) A production function in economics means any function performed by an employee when producing output the various functions performed by all employees when producing output the function performed by the person in charge of the production process the relationship between inputs and...
(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...
Exercise 4.2.2 In Figure E.4.1, we see the long-run average cost for the production of a...
Exercise 4.2.2 In Figure E.4.1, we see the long-run average cost for the production of a good, LRAC. Figure E.4.1 LRAC a) In the short run, capital is a fixed cost. Draw, for a few different values of K, what the short-run average cost, SRAC, looks like in relation to the long-run average cost. b) Sometimes, one talks of (dis-) economies of scale. What in the graph indicates whether we have economies or diseconomies of scale?
For a constant cost industry in which all firms the same cost functions, their long-run average...
For a constant cost industry in which all firms the same cost functions, their long-run average cost is minimized at $10 per unit output and 20 units (i.e. q = 20). Market demand is given by QD=DP=1,500-50P. Find the long-run market supply function Find the long-run equilibrium price (P*), market quantity (Q*), firm output (q*), number of firms (n), and each firm’s profit. The short-run total cost function associated with each firm’s long-run costs is SCq=0.5q2-10q+200. Calculate the short-run average...
A firm has the following long-run total cost function: LTC = 3500Q - 450Q2 + 15Q3...
A firm has the following long-run total cost function: LTC = 3500Q - 450Q2 + 15Q3 a. Write the equation for the long-run average cost. b. Determine the minimum value of LAC. c. If the firm is a price taker, determine the minimum long-run price it must receive so that it will not exit the industry. d. Over what range of output will the firm have economies of scale?
24. The long run average cost curve decreases due to a. A reduction in short run marginal cost b. A reduction in sh...
24. The long run average cost curve decreases due to a. A reduction in short run marginal cost b. A reduction in short run average cost curves c. Economies of scale d. Both a and b e. Both b and c You are given the following cost data: Quantity TVC TFC REALITATE 1250 12 25 34 46 25. What can you say regarding the pattern of the cost? a. Average fixed cost falls as quantity increases b. Average variable cost...
3. Show whether the cost function C (q,+q14-(qiq) exhibits both economies of scope and economies of...
3. Show whether the cost function C (q,+q14-(qiq) exhibits both economies of scope and economies of scale b Derive the bDerive the conditions under which the cost function C(qi.q) 1+(q + g2) exhibits economies of scope. 4 Consider a market in which all firms have the following total cost function C(g)-150+q+0.5q What level of output corresponds to the minimum average total b) cost (minimum efficient scale)? If firms are perfectly competitive, what is the equation of an individual firm's supply...
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...
all of them
Question 7 (1 point) If the long-run average cost is upward sloping, the firm is experiencing decreasing returns diseconomies of scale Oincreasing costs all of the above none of the above Question 8 (1 point) A production function in economics means any function performed by an employee when producing output the various functions performed by all employees when producing output the function performed by the person in charge of the production process the relationship between inputs and...
(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...
Exercise 4.2.2 In Figure E.4.1, we see the long-run average cost for the production of a good, LRAC. Figure E.4.1 LRAC a) In the short run, capital is a fixed cost. Draw, for a few different values of K, what the short-run average cost, SRAC, looks like in relation to the long-run average cost. b) Sometimes, one talks of (dis-) economies of scale. What in the graph indicates whether we have economies or diseconomies of scale?
24. The long run average cost curve decreases due to a. A reduction in short run marginal cost b. A reduction in short run average cost curves c. Economies of scale d. Both a and b e. Both b and c You are given the following cost data: Quantity TVC TFC REALITATE 1250 12 25 34 46 25. What can you say regarding the pattern of the cost? a. Average fixed cost falls as quantity increases b. Average variable cost...
3. Show whether the cost function C (q,+q14-(qiq) exhibits both economies of scope and economies of scale b Derive the bDerive the conditions under which the cost function C(qi.q) 1+(q + g2) exhibits economies of scope. 4 Consider a market in which all firms have the following total cost function C(g)-150+q+0.5q What level of output corresponds to the minimum average total b) cost (minimum efficient scale)? If firms are perfectly competitive, what is the equation of an individual firm's supply...
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...
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