Increasing Returns to Scale means that the long-run AC is upward sloping.

Question 12 The long-run average cost curve will be upward-sloping when the firm has: constant returns...

Question 12 The long-run average cost curve will be upward-sloping when the firm has: constant returns to scale. marginal returns to scale. economies of scale diseconomies of scale Question 13 A production function that is characterized by increasing returns to scale cannot be affected by diminishing marginal product. True False Question 14 A firm always operates at some point on its long-run average total cost curve in both the long run and the short run. True False Question 15 In...

An increasing-cost industry is an industry whose long-run supply curve is upward sloping, with an appropriate...

An increasing-cost industry is an industry whose long-run supply curve is upward sloping, with an appropriate diagram briefly illustrate the long run supply curve in a decreasing- cost industry. Please draw and write clearly

Define and Illustrate the Following: A production function showing Increasing returns to Scale A Long-Run Cost...

Define and Illustrate the Following: A production function showing Increasing returns to Scale A Long-Run Cost Function showing decreasing returns to Scale Nash Equilibrium (Construct your Own example) Cartel –like Oligopoly

If your long-run costs exhibit increasing returns to scale, securing big orders leads you to a....

If your long-run costs exhibit increasing returns to scale, securing big orders leads you to a. ​Increase average costs b. ​Reduce average costs c. ​Keep the average costs constant d. ​None of the above

Suppose that a firm has the Cobb-Douglas production function Q = 12K ^ (0.75) L^ (0.25)....

Suppose that a firm has the Cobb-Douglas production function Q = 12K ^ (0.75) L^ (0.25). Because this function exhibits (constant, decreasing, increasing) returns to scale, the long-run average cost curve is (upward-sloping, downward-sloping, horizontal), whereas the long-run total cost curve is upward-sloping, with (an increasing, a declining, a constant) slope. Now suppose that the firm’s production function is Q = KL. Because this function exhibits (constant, decreasing, increasing) returns to scale, the long-run average cost curve is (upward-sloping, downward-sloping,...

What are increasing, constant, and decreasing returns to scale? How are they related to the shape...

What are increasing, constant, and decreasing returns to scale? How are they related to the shape of the long-run average cost curve?

True/False/Explain. If the Marginal Cost curve is upward-sloping (MC is increasing) for a certain level of...

True/False/Explain. If the Marginal Cost curve is upward-sloping (MC is increasing) for a certain level of output, then the Average Variable Cost curve is also upward-sloping (AVC is increasing) for this level of output.

Explain why the short-run aggregate supply curve is upward sloping.

Explain why the short-run aggregate supply curve is upward sloping.

1) The production function Q = 50K0.25L0.25 exhibits A. increasing returns to scale. B. constant returns...

1) The production function Q = 50K0.25L0.25 exhibits A. increasing returns to scale. B. constant returns to scale. C. decreasing returns to scale. Answer D. increasing, then diminishing returns to scale. E. negative returns to scale. 2) The production function Q = 50K0.25L0.75 exhibits A. increasing, then diminishing returns to scale. B. increasing returns to scale. C. decreasing returns to scale. D. constant returns to scale. Answer E. negative returns to scale. could you please explaing me the reason of...

Determine which of the following production functions exhibit decreasing returns to scale, increasing returns to scale,...

Determine which of the following production functions exhibit decreasing returns to scale, increasing returns to scale, or constant returns to scale. Q = K/(L)^2 Q = 4K + 2L Q = a KL