Cost Cost Firm A Firm C FIGURE 8-1 O O O LRAC Output LRAC Cost Output Cost 选择一项: O A. Firm A OB. Firm B C. Firm C D. Firm D E. none of the four firms Firm B Firm D 12 Refer to Figure 8-1. For which of the four firms would the family of short-run average total cost curves lie below the LRAC? LRAC Output LRAC Output

Cost Cost Firm A Firm C FIGURE 8-1 O O O LRAC Output LRAC Cost Output Cost 选择一项: O A. Firm A OB. Firm B C. Firm C D. Firm D E. none of the four firms Firm B Firm D 12 Refer to Figure 8-1. For which of the four firms would the family of short-run average total cost curves lie below the LRAC? LRAC Output LRAC Output

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 37CTQ: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,...

See similar textbooks

Similar questions

How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
See Hint Suppose you are the owner of a firm producing jelly beans. Your production costs are shown in the table. Jelly Bean Production Вохes Average cost per box 100 $0.95 101 $0.96 102 $0.97 $0.98 103 Initially, you produce 100 boxes of jelly beans per time period. Thena new customer calls and places an additional order for jelly beans, requiring you to increase your output to 101 boxes. She offers you $1.75 for the additional box. Should you produce it? Choose one: O. A Yes, because $1.75 is greater than average total cost, O B. No, because $1.75 is less than average total cost. O C. Yes, because $1.75 is greater than the marginal cost. O D. No, because $1.75 is less than the marginal cost. 9 E. We can't say because we don't know average variable cost.
IAN GE Student Resources - Faculty Resources - Academic Resources - Ime grupiI Delow IIUIUUES two piunt Sizes us musuuteu uy ACr UnU ACZ. AC1 AC2 AC1 AC2 LRAC Q1 02 Output per time period Refer to the graph above to answer this question. Which of the following statements is correct if a firm is operating at point a on AC1? Select one: O a. The firm is achieving MES. O b. Building a larger plant would result in lower long-run average cost. O c. Building a larger plant would not result in lower long-run average cost. od. The firm has achieved capacity output. O e. An increase in the output would not lower costs. Clear my choice Staut o gao
Suppose the production function for high quality brandy is given by : Q = √KL Where q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. Ifthecapitalrentsfor10$andthewageare5$perhour.,writetheshortruntotalcost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. Howmanylaborhourswillbehiredperweek?
Refer to the graph shown. If a firm expected to produce 900 units when it built its plant but now desires to reduce its output to 600 units in the short run, it will use the plant size represented by: 0 300 O Multiple Choice O 600 00 SATC₁ Quantity SATC₁. SATC2. SATC3 SATC2 SATC3 SATC₂ SATCA. 900 L 1200 SATC Long-Run Average Cost 1500 Refer to the graph shown. A firm that shifts from SATC₁ to SATC2 is most likely to do so because planned output increases: Cost per unit 0 300 600 SATC₁ Multiple Choice 900 1200 1500 Quantity SATC₂ SATC2 SATC₂ to 300, from 300 to 900. from 300 to 600. SATC Long-Run Average Cost from 600 to 900.
Which is most hkely to be a constant cost industry? O a Widgits do not require specialized equipment or workers, and Widgits have been produced the same way for a long time O b. Gadgets require a special metal, and the world is starting to run out of this metal Oc Gruffles require a special metal, and people have just started to use this metal. Now, engineers are quickly finding better ways to mine this metal. Od. These are all equally likely to be constant cost industries Oe. None of these could be constant cost industries In Canada, here is the market for Woogets Quantity Demanded- 300 - P Quantity Supplied = 2P The world price is 50, and Canadians can buy and sell as much as they want at this price. What is consumer surplus in Canada, if there is completely open trode? Write the answer as a number. For example, if you think the answer is 100,971, write 100971
Problem 2: Average total cost, from “Principles of Economics” by N. Gregory MankiwYou are the chief financial officer for a firm that sells gaming consoles. Your firm has thefollowing average-total-cost schedule:Quantity | Average total cost600 $300601 $301Your current level of production is 600 consoles, all of which have been sold. Someone calls, desperateto buy one of your consoles. The caller offers you $550 for it. Should you accept the offer? Why or whynot?
The accompanying table shows a car manufacturer’s total cost of producing cars. Quantity of cars TC 0 $500,000 1 540,000 2 560,000 3 570,000 4 590,000 5 620,000 6 660,000 7 720,000 8 800,000 9 920,000 10 1,100,000 What is this manufacturer’s fixed cost? For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? For each level of output, calculate this manufacturer’s marginal cost (MC). On one diagram, draw the manufacturer’s AVC, ATC, and MC curves.
What are some of the implicit cost incurred by an entrepreneur in running a firm? Howare these implicit costs estimated?
A firm has three different production facilities, all of which produce the same product. Whilereviewing the firm’s cost data, Ron, a manager, discovered that one of the plants has a higher averagecost than the other plans and suggests closing this plant. Another manager, Jack, notes that the high-cost plant has high fixed costs but that the marginal cost in this plant is lower than in the other plants.He says that the high-cost plant should not be shut down but should expand its operations. Who isright?
estion 4 of 30 Each graph illustrates three short run cost curves for firms, where ATC is average total cost (aka average cost), MC is marginal cost, and AVC is average variable cost. Which graph correctly represents the relationship between all three cost curves? О Cost MC Cost ATC MC ATC AVC AVC Output Output Cost MC Cost MC АТС AVC AVC АТС Output Output 8:14 PM 回节回 46°F 12/15/2021 近

The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run. Plant 1 Plant 2 Plant 3 Output ATC Output ATC Output ATC 10 $ 10 10 $ 15 10 $ 20 20 9 20 10 20 15 30 8 30 7 30 10 40 9 40 10 40 8 50 10 50 14 50 9 What is the long-run average cost of producing 20 units of output? Multiple Choice $15 О $10 ○ $34 О $9