Question 1

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. The firm experiences constant returns to scale at which output levels?

Accepted Answer

Constant returns to scale means that increasing all inputs by the same proportion will result in the same proportionate increase in output. In the figure, the slope of the ATC curve is constant between output levels M and N, indicating that increasing output in this range results in a proportional increase in costs, and thus constant returns to scale. Therefore, the correct answer is B, output levels between M and N.

Question 2

Table 13-16
Listed in the table are the long-run total costs for three different firms.
 
-Refer to Table 13-16. Which firm is experiencing diseconomies of scale?

Accepted Answer

Firm C is the only one experiencing diseconomies of scale as its long-run total cost increases at a faster rate than its level of output. Firms A and B both experience economies of scale, as their long-run total costs decrease with an increase in output.

Question 3

Table 13-17
Consider the following table of long-run total cost for four different firms:
 
-Refer to Table 13-17. Which firm has constant returns to scale over the entire range of output?

Accepted Answer

The answer of Table 13-17
Consider the following table of long-run...

Question 4

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

Accepted Answer

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

Question 5

In the long run a company that produces and sells organic tofu incurs total costs of $1,200 when output is 1,200 units and $1,650 when output is 1,400 units. The tofu company exhibits

Accepted Answer

The fact that total costs increase as output increases suggests that the company is experiencing some level of inefficiency, leading to diseconomies of scale. Furthermore, the fact that average total cost (ATC) is also increasing as output rises provides further evidence of diseconomies of scale. When a company is experiencing economies of scale, both total cost and ATC should be decreasing as output increases.

Question 6

Suppose that a firm's long­run average total costs of producing custom wooden picnic tables is $300 when it produces 10,000 tables and $325 when it produces 11,000 tables. For this range of output, the firm is experiencing

Accepted Answer

The long-run average total cost is increasing as the firm increases its production from 10,000 to 11,000, indicating that the firm is experiencing diseconomies of scale. As the firm produces more, it may face diminishing marginal returns to factors of production, leading to higher costs per unit of output.

Question 7

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. At output levels greater than N, the firm experiences

Accepted Answer

At output levels greater than N, the average total cost of producing each additional unit increases, indicating that the firm is experiencing diseconomies of scale.

Question 8

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. Which curve represents the long-run average total cost?

Accepted Answer

The answer of Figure 13-9
The figure below depicts average total...

Question 9

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...

Question 10

Table 13-16
Listed in the table are the long-run total costs for three different firms.
 
-Refer to Table 13-16. Which firm is experiencing constant returns to scale?

Accepted Answer

The answer of Table 13-16
Listed in the table are the...

Question 11

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...

Question 12

Suppose that a firm's long­run average total costs of producing hand­crafted chairs is $300 when it produces 10,000 chairs and $325 when it produces 11,000 chairs. For this range of output, the firm is likely experiencing

Accepted Answer

The answer of Suppose that a firm's long­run average total...

Question 13

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. In the long run, the firm can operate on which of the following average total cost curves?

Accepted Answer

The answer of Figure 13-9
The figure below depicts average total...

Question 14

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

Accepted Answer

The answer of Figure 13-9
The figure below depicts average total...

Question 15

Suppose that a firm's long­run average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing

Accepted Answer

The increase in long-run average total costs as output increases indicates that the firm is experiencing diseconomies of scale. This means that as the scale of production increases, the firm is facing higher costs per unit of output, which could be due to factors such as inefficient management, difficulty in coordinating larger operations, or limited availability of resources.

Question 16

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. The firm experiences economies of scale at which output levels?

Accepted Answer

The answer of Figure 13-9
The figure below depicts average total...

Question 17

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. At levels of output less than M, the firm experiences

Accepted Answer

At levels of output less than M, the average total cost is decreasing which indicates that the firm is experiencing economies of scale. This means that as the firm increases production, its average cost per unit decreases, indicating that it is able to take advantage of efficiencies and cost savings from larger scale production.

Question 18

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. At levels of output between M and N, the firm experiences

Accepted Answer

At levels of output between M and N, the average total cost curve is relatively flat, indicating constant returns to scale. This means that as the firm increases its scale of production, there is no significant change in its average total cost.

Question 19

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...

Question 20

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?

Accepted Answer

The answer of Figure 13-9
The figure below depicts average total...

Quiz 12: The Costs of Production

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. The firm experiences constant returns to scale at which output levels?

Table 13-16 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-16. Which firm is experiencing diseconomies of scale?

Table 13-17 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-17. 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 the long run a company that produces and sells organic tofu incurs total costs of $1,200 when output is 1,200 units and $1,650 when output is 1,400 units. The tofu company exhibits

Suppose that a firm's longrun average total costs of producing custom wooden picnic tables is $300 when it produces 10,000 tables and $325 when it produces 11,000 tables. For this range of output, the firm is experiencing

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. At output levels greater than N, the firm experiences

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. Which curve represents the long-run average total cost?

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

Table 13-16 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-16. Which firm is experiencing constant returns to scale?

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

Suppose that a firm's longrun average total costs of producing handcrafted chairs is $300 when it produces 10,000 chairs and $325 when it produces 11,000 chairs. For this range of output, the firm is likely experiencing

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. In the long run, the firm can operate on which of the following average total cost curves?

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

Suppose that a firm's longrun average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. The firm experiences economies of scale at which output levels?

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. At levels of output less than M, the firm experiences

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. At levels of output between M and N, the firm experiences

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

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?

Quiz 12: The Costs of Production

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. The firm experiences constant returns to scale at which output levels?

Table 13-16 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-16. Which firm is experiencing diseconomies of scale?

Table 13-17 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-17. 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 the long run a company that produces and sells organic tofu incurs total costs of $1,200 when output is 1,200 units and $1,650 when output is 1,400 units. The tofu company exhibits

Suppose that a firm's long­run average total costs of producing custom wooden picnic tables is $300 when it produces 10,000 tables and $325 when it produces 11,000 tables. For this range of output, the firm is experiencing

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. At output levels greater than N, the firm experiences

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. Which curve represents the long-run average total cost?

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

Table 13-16 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-16. Which firm is experiencing constant returns to scale?

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

Suppose that a firm's long­run average total costs of producing hand­crafted chairs is $300 when it produces 10,000 chairs and $325 when it produces 11,000 chairs. For this range of output, the firm is likely experiencing

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. In the long run, the firm can operate on which of the following average total cost curves?

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

Suppose that a firm's long­run average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. The firm experiences economies of scale at which output levels?

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. At levels of output less than M, the firm experiences

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. At levels of output between M and N, the firm experiences

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

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?

Suppose that a firm's longrun average total costs of producing custom wooden picnic tables is $300 when it produces 10,000 tables and $325 when it produces 11,000 tables. For this range of output, the firm is experiencing

Suppose that a firm's longrun average total costs of producing handcrafted chairs is $300 when it produces 10,000 chairs and $325 when it produces 11,000 chairs. For this range of output, the firm is likely experiencing

Suppose that a firm's longrun average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing