Question
In: Economics
Q 2) a-)Why is short-run average total cost (SATC) at a minimum at the output, at...
Q 2) a-)Why is short-run average total cost (SATC) at a minimum at the output, at which the short-run marginal cost (SMC) curve and short-run average total cost (SATC) curve cross? Explain and draw the figure.
b-) What is the effect of higher interest rates on the quantity of real money demanded? Explain and draw the figure.
Solutions
Rahul Sunny answered 7 months agoRelated Solutions
1.) Economies of scale refer to A.) the minimum point on the short-run average total cost curve...
1.) Economies of scale refer to
A.) the minimum point on the short-run average total cost
curve
B.) the flat portion of the long-run average total cost
curve.
C.) a decrease in the long-run average total cost of production
as output increases.
D.) a and b
E.) none of the above
.
2.) Minimum efficient scale refers to the
A.) minimum size plant in any given industry
B.) minimum point on the short-run average total cost curve
C.) output level when...
1 The short-run average total cost curve and the long-run average total cost curve are similarly...
1
The short-run average total cost curve and the long-run average
total cost curve are similarly shaped. What are the causes for the
short run and long-run average total cost curve to slope down and
up?
2 Mr. Salim has been working at a car manufacturing plant
forthe last 4 years. He recently lost his job due to the downsizing
of the company he works for due topoor car sales and poor economic
performance. What type of unemployment is Salim...
Units of Output (Q) Total Cost (TC) Total Variable Cost (TVC) Average Variable Cost (AVC) Average...
Units of Output (Q)
Total Cost (TC)
Total Variable Cost (TVC)
Average Variable Cost (AVC)
Average Fixed Cost (AFC)
Marginal Cost (MC)
0
$120
$0
N/A
N/A
N/A
1
121
2
126
3
147
4
196
5
285
6
426
7
631
8
912
9
1,281
10
1,750
4. The following Table represents a firm’s
short run costs.
a. Complete the missing cells in the Table
(10 points).
How can the long-run average cost (LRAC) curve be derived from the short-run average total cost...
How can the long-run average cost (LRAC) curve be derived from
the short-run average total cost (SRATC) curve?
How can the long-run average cost (LRAC) curve be derived from the short-run average total cost...
How can the long-run average cost (LRAC) curve be derived from
the short-run average total cost (SRATC) curve?
Describe economies of scale and diseconomies of scale.
What are the determinants of economies of scale and
diseconomies of scale, respectively?
Using a real-world company (other than Sysco), explain the
causes of economies of scale for your company.
How would economies of scale help your company compete in its
industry?
(10 pts) A firm has the following short run total costs, where Q is output and...
(10 pts) A firm has the following short run total costs, where
Q is output and TC is total cost:
Q
TC
0
$ 100
1
110
2
130
3
160
4
200
5
250
6
310
7
380
8
460
9
550
10
650
11
760
What is total fixed cost equal to? $100
What is average total cost at Q = 4? $50
What is average variable cost at Q = 7? $40
What is marginal cost at...
In the short run, why does the Average Total Cost have a U-Shape? please use "bullet...
In the short run, why does the Average Total Cost have a
U-Shape? please use "bullet points".
2. How does the envelope relationship relate short run average cost and long run average cost?
2. How does the envelope relationship relate short run average
cost and long run average cost?
Explain why a firm's long-run total cost is no greater than its short-run total cost. Under...
Explain why a firm's long-run total cost is no greater than its
short-run total cost. Under what circumstances will the two be
equal? Illustrate both types of total cost in a diagram.
In a price-taker market, each firm's short run supply curve is its marginal cost curve, above its minimum average total cost.
7) T/F In a price-taker market, each firm's short run supply
curve is its marginal cost curve, above its minimum average total
cost.8) T/F The limited liability of stockholders in the corporate
business structure makes it harder to raise equity capital.9) T/F In the year 2008, nearly three out of four business firms
in the United States were organized as proprietorships.10) T/F When demand is relatively price inelastic, price and
total revenue will change in the same direction.11) T/F As...
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