Homework Answers
Answer
Option 2
there are economies of scale
the LRMC<LRATC means the long-run average total cost is decreasing which means the firm is experiencing economics of scale.
Economics of scale means the firm's LRATC is decreasing over the demand curve of the market.
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QUESTION 11 At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This im...
please answer qs 11 and 12 asap plz QUESTION 11 A firm wants to minimize the...
please answer qs 11 and 12 asap plz
QUESTION 11 A firm wants to minimize the total cost of producing 100 tons of dynamite. The firm uses two factors of production, chemicals and labor. The combination of chemicals and labor that minimizes production costs will be found where the ratio of the amount of chemicals used to the amount of labor used equals the CA ratio of the marginal product of chemicals to the marginal product of labor the ratio...
(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...
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...
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...
An increase in long-run average costs resulting from increases in output is __________. Question 18 options:...
An increase in long-run average costs resulting from increases in output is __________. Question 18 options: attributed to constant returns to scale attributed to diseconomies of scale attributed to the law of diminishing marginal product attributed to economies of scale
Which of the following is NOT true about the long run average cost curve (LRAC)? Select...
Which of the following is NOT true about the long run average cost curve (LRAC)? Select one: a. the shape of the LRAC is due to economies and diseconomies of scale b. the LRAC is influenced by the short run average cost curves c. the LRAC represents the least expensive average cost curve for any level of output d. the shape of the LRAC is due to the law of diminishing marginal returns
If a firm's long-run average cost goes from $3 to $2.5 when output increases, the firm...
If a firm's long-run average cost goes from $3 to $2.5 when output increases, the firm is experiencing ________. economies of scale constant returns to scale diseconomies of scale a shift in its long-run average cost curve
The following graph shows short-run marginal cost curves, short-run average cost curves, and a long-run average...
The following graph shows short-run marginal cost curves, short-run average cost curves, and a long-run average total cost curve for a firm. Cost Curves 11 10 - 9 LRATC SRATC SRMC SRATC SRMC Per unit costs SRATO SRMC . 10 10 Quantity Which cost curves represent an efficient firm producing where there are diseconomies of scale? (Click to select) | Which cost curves represent an efficient firm producing where there are economies of scale? (Click to select) Which cost curves...
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...
If a firm is producing the level of output at which long-run average cost equals long-run marginal cost, then a. long-r...
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-run total cost is at its minimum point. d.output is maximized.
please answer qs 11 and 12 asap plz
QUESTION 11 A firm wants to minimize the total cost of producing 100 tons of dynamite. The firm uses two factors of production, chemicals and labor. The combination of chemicals and labor that minimizes production costs will be found where the ratio of the amount of chemicals used to the amount of labor used equals the CA ratio of the marginal product of chemicals to the marginal product of labor the ratio...
(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...
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 following graph shows short-run marginal cost curves, short-run average cost curves, and a long-run average total cost curve for a firm. Cost Curves 11 10 - 9 LRATC SRATC SRMC SRATC SRMC Per unit costs SRATO SRMC . 10 10 Quantity Which cost curves represent an efficient firm producing where there are diseconomies of scale? (Click to select) | Which cost curves represent an efficient firm producing where there are economies of scale? (Click to select) Which cost curves...
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-run total cost is at its minimum point. d.output is maximized.
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