Quantity O c. Firm 2 O d. Firm 3 FIN 1 2 3 4 5 6 7 Table 13-12 Long-Run Total Cost (Dollars) Firm 1 Firm 2 Firm 3 Firm 4 180 120 150 210 350 250 300 340 510 390 450 490 660 540 600 660 800 700 750 850 930 870 900 1,060 1,050 1,050 1,050 1,290 Refer to Table 13-12. Which firm has constant returns to scale over the entire range of output? O a. Firm 4 O b. Firm 1

Quantity O c. Firm 2 O d. Firm 3 FIN 1 2 3 4 5 6 7 Table 13-12 Long-Run Total Cost (Dollars) Firm 1 Firm 2 Firm 3 Firm 4 180 120 150 210 350 250 300 340 510 390 450 490 660 540 600 660 800 700 750 850 930 870 900 1,060 1,050 1,050 1,050 1,290 Refer to Table 13-12. Which firm has constant returns to scale over the entire range of output? O a. Firm 4 O b. Firm 1

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 28RQ: What shape of a long-run average cost curve illustrates economies of scale, constant returns to...

See similar textbooks

Similar questions

Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
How does fixed cost affect marginal cost? Why is this relationship important?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
How do we calculate marginal product?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
What is the difference between fixed costs and variable costs?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
What is a production technology?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
What is the output when this firm hires 4 workers? Marginal Variable Fixed Cost Labor Output Product Cost 10 0 $0 1 100 100 $5 2 250 $10 SSS $5 $5 $5 3 350 $15 $5 4 50 $20 $5 5 25 $25 $5 6 430 $30 $5 425 350 430 400
Output 0 1 2 3 4 5 6 All of the following are correct, except that the firm has Multiple Choice Total Cost $ 80 160 240 320 400 480 560 O constant marginal cost. O economies of scale. an average fixed cost of $20 at 4 units of output. Ofixed costs of $80.