Suppose Charles owns a​ lawn-mowing company. A company may decrease its cost by buying in bulk; therefore, the increase in output will increase the cost by a lower proportion. Which graph is representative of a typical average total cost curve? O c. will earn positive profits if it remains in business D. will become a natural monopoly O E. Assume that without​ workers, no yards are mowed. The relationship between the inputs employed by a firm and the maximum output it can produce with those inputs. Charles plans to mow 500 yards per year. If​ so, give an example. likely less than​ \$424 per iPhone because Apple also has fixed costs of production. The figure to the right illustrates the​ short-run cost curves for a company that produces cell phones. The minimum efficient scale (MES) is the point on a cost curve at which a company can produce its product cheaply enough to offer it at a competitive price. According to the graph, which of the following is more likely to occur when moving from point A to point B? According to the table of data, when do diminishing returns in the production of pizzas begin? To do​ so, he purchases mowing equipment for ​\$7 comma 000​, buys gasoline ​(\$1.90 in gas is required to mow each​ yard), and pays a helper ​\$15.00 per yard. In the short-run, the cost that is independent of the amount of output produced is called __________. when a​ firm's long-run average costs increase with output. In the​ graph, the relationship between costs and output for the smaller restaurant is represented by the curve ATC1​, and the relationship between costs and output for the larger restaurant is represented by the curve ATC 2. According to the table, what is the average total cost of producing 550 pizzas? Firms experience economies of scale for several reasons. The downward sloping part of the long run average total cost curve is where the firm is achieving: When graphing a conventional short-run production function, we place __________ on the horizontal axis and __________ on the vertical axis. Jill should build a smaller restaurant because average total costs will be lower than for a larger restaurant. Your company incurs a cost for store rent​, ​which, in the short​ run, is fixed. Tom Brady roasts himself in tweet praising LeBron James Suppose a pizza parlor has the following production​ costs: ​\$4.00 in labor per​ pizza, ​\$1.00 in ingredients per​ pizza, ​\$0.50 in electricity per​ pizza, ​\$2 comma 500 in restaurant rent per​ month, and ​\$450 in insurance per month. Is Jill Johnson correct when she says the​ following: ​Jill's average total cost of production is​ increasing, so her marginal cost of producing pizzas must be increasing. discuss what the implications of this would have been for the automobile industry, a- ford could have profitably sold his cars at a lower price than competitors, she reasons "I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, and I don't want to see my costs rise by \$3000 per month." Consider a production process where flowers are grown​ (the output) using gardeners​ (labor) and greenhouses​ (capital). Minimum efficient scale corresponds to the lowest point on the long run average cost curve and is also known as an output range over which a business achieves productive efficiency.. MES is not a single output level – more likely, the MES is a range of outputs where the firm achieves constant returns to scale and has reached the lowest feasible cost per unit. The short run is a period of time where __________ while the long run is a period of time where __________. Which of the following is known as the highest-valued alternative that must be given up in order to engage in an activity? a firm that does not reach its minimum efficient scale. The quantity of flowers grown per day with various combinations of labor and capital are shown in the table below. What is occurring from the origin up until point A in this graph? Bookstores that sell more than 80,000 books per month. does the law of diminishing returns apply in the long run? when the third worker is hired (when the marginal product of labor starts to decrease), the marginal cost curve intersects the average variable cost curve at the level of output where average variable cost is at a minimum because, is it possible for average total cost to be decreasing over a range of output where marginal cost is increasing? It is possible for technological change to be negative. When the marginal cost of the last unit produced is below the average, it pulls the average down, and when the marginal cost is above the average, it pulls the average up. At least one input is fixed, all inputs are variable. Which of the following is true of the relationship between the average product of labor and the marginal product of labor? The graph to the right illustrates the average product of labor. The 10 absolute best deals for Amazon Prime Day 2020. As a firm expands, it may be able to borrow money less expensively, thereby lowering its costs. at least one of the​ firm's inputs is​ fixed, while in the long​ run, the firm is able to vary all its​ inputs, adopt new​ technology, AND change the size of its physical plant. do you agree with the students analysis? is the amount of time that separates short run from the long run the same for every firm? if marginal cost is less than average total cost, then average total cost will be decreasing, suppose a firms average total cost curve is decreasing with output. Consider a firm that hires workers to mow lawns. In the short​ run, at least one of a​ firm's inputs is​ fixed, while in the long​ run, a firm is able to vary all its inputs and adopt new technology. the level of output at which the long-run average cost of production no longer decreases with output. Based on the relationship between average total cost and marginal cost, which of the curves appears to be average total cost?

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