Question 1

Table 13-13
Consider the following table of long-run total cost for four different firms:
 
-Refer to Table 13-13.Firm 1's efficient scale occurs at what quantity?

Accepted Answer

The efficient scale occurs at the quantity where the firm's long-run average total cost is at a minimum. For Firm 1, this occurs at a quantity of 3, where the long-run average total cost is $20 per unit. At any higher or lower quantity, the long-run average total cost is higher. Therefore, the best choice is B, 3.

Question 2

Table 13-13
Consider the following table of long-run total cost for four different firms:
 
-Refer to Table 13-13.Which firm has economies of scale and then diseconomies of scale as output increases from 1 to 7?

Accepted Answer

The answer of Table 13-13
Consider the following table of long-run...

Question 3

Table 13-12
Listed in the table are the long-run total costs for three different firms.
 
-Refer to Table 13-12.Which firm is experiencing diseconomies of scale?

Accepted Answer

Firm C is experiencing diseconomies of scale because its average total cost is increasing as output increases.

Question 4

Which of the following statements is not correct?

Accepted Answer

Economies of scale is a long-run concept.

Question 5

Figure 13-10 -Refer to Figure 13-10.The three average total cost curves on the diagram labeled ATC₁,ATC₂,and ATC₃ most likely correspond to three different

Accepted Answer

The answer of Figure 13-10 
-Refer to Figure 13-10.The three...

Question 6

Figure 13-10 
-Refer to Figure 13-10.The firm experiences constant returns to scale if it changes its level of output from

Accepted Answer

The answer of Figure 13-10 
-Refer to Figure 13-10.The firm...

Question 7

Table 13-12
Listed in the table are the long-run total costs for three different firms.
 
-Refer to Table 13-12.Which firm is experiencing constant returns to scale?

Accepted Answer

The answer of Table 13-12
Listed in the table are the...

Question 8

Table 13-13
Consider the following table of long-run total cost for four different firms:
 
-Refer to Table 13-13.Which firm has constant returns to scale over the entire range of output?

Accepted Answer

The answer of Table 13-13
Consider the following table of long-run...

Question 9

Figure 13-10 
-Refer to Figure 13-10.The firm experiences diseconomies of scale if it changes its level of output from

Accepted Answer

As the level of output increases from Q₄ to Q₅, the average cost per unit increases, indicating diseconomies of scale. This is because the firm is experiencing higher costs and inefficiencies as it tries to produce more output beyond its optimal production level. Therefore, it is not economically efficient to expand production beyond Q₄.

Question 10

In setting the production level,a firm's cost curves

Accepted Answer

While a firm's cost curves provide important information about the cost of producing output, they do not dictate what decisions the firm will make. Ultimately, the firm will choose a production level that maximizes profit or minimizes losses, taking into account factors such as market demand and competition. Cost curves are just one piece of information that the firm will consider in making this decision.

Question 11

Table 13-13
Consider the following table of long-run total cost for four different firms:
 
-Refer to Table 13-13.Which firm's long-run marginal cost decreases as output increases?

Accepted Answer

The answer of Table 13-13
Consider the following table of long-run...

Question 12

Figure 13-10 
-Refer to Figure 13-10.The firm experiences economies of scale if it changes its level of output from

Accepted Answer

The answer of Figure 13-10 
-Refer to Figure 13-10.The firm...

Question 13

Table 13-13
Consider the following table of long-run total cost for four different firms:
 
-Refer to Table 13-13.Which firm has diseconomies of scale over the entire range of output?

Accepted Answer

Firm 3 has diseconomies of scale over the entire range of output because its long-run total cost increases as it produces more output, indicating that it is becoming less efficient as it grows. The other firms have either constant or decreasing long-run total costs, indicating that they are experiencing either constant returns to scale or economies of scale.

Question 14

Table 13-13
Consider the following table of long-run total cost for four different firms:
 
-Refer to Table 13-13.Which firm has economies of scale over the entire range of output?

Accepted Answer

Firm 2 has economies of scale over the entire range of output because its average total cost decreases as output increases.

Quiz 13: The Costs of Production

Table 13-13 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-13.Firm 1's efficient scale occurs at what quantity?

Table 13-13 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-13.Which firm has economies of scale and then diseconomies of scale as output increases from 1 to 7?

Table 13-12 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-12.Which firm is experiencing diseconomies of scale?

Which of the following statements is not correct?

Figure 13-10 -Refer to Figure 13-10.The three average total cost curves on the diagram labeled ATC1,ATC2,and ATC3 most likely correspond to three different

Figure 13-10 -Refer to Figure 13-10.The firm experiences constant returns to scale if it changes its level of output from

Table 13-12 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-12.Which firm is experiencing constant returns to scale?

Table 13-13 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-13.Which firm has constant returns to scale over the entire range of output?

Figure 13-10 -Refer to Figure 13-10.The firm experiences diseconomies of scale if it changes its level of output from

In setting the production level,a firm's cost curves

Table 13-13 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-13.Which firm's long-run marginal cost decreases as output increases?

Figure 13-10 -Refer to Figure 13-10.The firm experiences economies of scale if it changes its level of output from

Table 13-13 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-13.Which firm has diseconomies of scale over the entire range of output?

Table 13-13 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-13.Which firm has economies of scale over the entire range of output?

Figure 13-10 -Refer to Figure 13-10.The three average total cost curves on the diagram labeled ATC₁,ATC₂,and ATC₃ most likely correspond to three different