Question
In: Economics
Long Run Cost Derive a firm's total cost curve by using a firms isoquants and isocost...
Long Run Cost
Derive a firm's total cost curve by using a firms isoquants and isocost lines(note:be sure to show what is on the axis,and the values for all points and curves-the correct labeling and spacing of the things is very mportant)for the case where the firm has
a)constant return to scale
b)decreasing return to scale
c)increasing returns to scale
d)For decreasing return to scale ,from the total cost curve,derive the correct long run marginal cost curve and long run average cost curve.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Graphically depict, with an optimal choice diagram (isoquants and isocost lines), the shortrun and long-run input...
Graphically depict, with an optimal choice diagram (isoquants
and isocost lines), the shortrun and long-run input levels and
total costs of producing a given level of output.
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...
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.
A U-shaped long-run average total cost curve can be explained by firms increasing their factory size...
A U-shaped long-run
average total cost curve can be explained by firms increasing their
factory size to
(x) avoid coordination problems that occur when the factory is
large.
(y) take advantage of greater specialization.
(z) avoid fixed costs.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only
A business firm
produces and sells specialty cakes. Last year, the firm produced
12,000 cakes and sold each cake...
all firms in a competitive industry have the following long-run total cost curve: C(q) = q3...
all firms in a competitive industry have the following long-run
total cost curve: C(q) = q3 -10q2 +36q, where
q is the output of the firm
a. Find the price in the market and how many units each firm
will sell in the long run
b. If the market demand was Q = 10p-5, how much output will be
bought and sold in the market?
c. How many firms will exist in the long run?
d. What is their economic...
Why is the long-run average total cost (LRATC) curve called the planning curve? Illustrate.
Why is the long-run average total cost (LRATC) curve called the
planning curve? Illustrate.
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?
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...
Question 2 : A) The long-run average total cost curve shows: Select one: a. the plant...
Question 2 :
A)
The long-run average total cost curve shows:
Select one:
a. the plant size or scale that the firm should build.
b. the average total cost of producing where diminishing returns
are not present.
c. the lowest average total cost of producing every level of
output in the long run.
d. where the most profitable level of output occurs.
B)
The minimum efficient scale is the:
Select one:
a. smallest output level where fixed costs are minimised....
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