1. Evaluate the view that the main goal of firms will always be cost minimization.

Q: 1. Based on the above table, does the firm operate in short run or long run?WHY? 2. Based on the…

A: The missing entries in the cost table of the firm have been computed as follows:  Quantity Fixed…

Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…

A: Economies of Scale: Reduction of average and marginal costs in the long run due to an increase of a…

Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…

A: Short run is the period when there is no possibility of increasing or decreasing the capital. This…

Q: Assume that in the short run a firm is producing 100 units of output, has average total costs of…

A: Total cost = total fixed cost + total variable cost Now  ATC = $200, output = 100 ATC = TC /output…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given: To Find: The short-run total cost if Ike's Bikes is currently producing 600 bikes: The…

Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…

A: Answer: LRATC (long-run average total cost)=Long-run average total cost is obtained by taking the…

Q: Use the following data to draw a long-run average total cost curve. Label the range of diseconomies…

A:

Q: Course: Microeconomic - Long and short run costs The company "Mr. Tomas" manufactures tricycles…

A: Tricycle is a function of function of two set of inputs :  Steering wheel , seat & frame : (v)…

Q: 3. Consider the following production function: q = 2L +3/K Assume K = 16, derive the marginal…

A: production-function gives us the maximum output that can be achieved with various…

Q: Capital (K) Labor (L) Output (q) 8 0 0 8 1 6 8 2 13.5 8 3 23.5 8 4 31 8 5 37 8 6 42 8 7 46 8 8 49 8…

A: Given information

Q: 3. Determined whether each statement is true or false and provided an explanation. A. If a firm has…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Economies of scale refers to the gradual decline in the average cost with increase in the scale of…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Short run average cost curve is the per unit cost of production in the short run. In the short run,…

Q: 1. Economies of Scale Consider the following table of long-run total costs for three different…

A: PLEASE FIND THE ANSWER BELOW.

Q: a. How many barrels of oil will the firm extract in the first year? million barrels b. Suppose the…

A: The company will extract that quantity (Q) at which the price of extracting and the price of selling…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: To produce 100 bikes using 1 factory, short run average cost is $360.

Q: WW is a small automobile manufacturer.  The table below shows WW’s long-run average total cost:…

A: Theory and definitions- There are three types of returns to scale- Economies of scale The constant…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: * SOLUTION :-    Given that ,

Q: The table below presents production data for a particular firm. 1) Use formulas/calculation in excel…

A: Total Fixed Cost = Total Cost - Total Varible Cost Total Fixed Cost = Total Cost - Total Varible…

Q: 1. Maximizing profits means to ______. a. create a balance between seeking economic profits and…

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale is situation when producing more quantity of goods , the unit cost of…

Q: Table 13-17 Consider the following table of long-run total cost for four different firms: Quantity…

A: Constant returns to scale refers to situation when output increases in the same amount as the cost…

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: Disclaimer :: as you posted multiple questions we are supposed to solve the first one only. Cost is…

Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…

A: Short run average total cost is $720 per bike. In the long run, it would like to produce using three…

Q: 6. If the Marginal Cost for a product is found to be MC = 8x + 60, and the Marginal Revenue is given…

A: We are going to use Profit maximization method to answer this question. Use differentiation and…

Q: 1. Economies of Scale Consider the following table of long-run total costs for three different…

A: When more units of an item or service can be produced on a bigger scale with (on average) lower…

Q: Discuss the issue of “achievement of the economy of scale” and how it could help in company’s…

A: Economy of scale increases the profits of company. It is because cost would be lower and revenue…

Q: Following is the information available for Bubble Gums produced by Bano and Co. Output (Q) Labor…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3.Please resubmit the question…

Q: 2. Assume that the marginal cost of production is greater than the average variable cost. Can you…

A: Formula to calculate AVC and MC:- AVC=TVCQMC=TCn-TCn-1 where; TVC= Total Variable CostTC=Total…

Q: You are interested in starting a used car dealership in your country. Provide examples with…

A: Answer 1 :

Q: C. The following table shows the short-run average total costs for five successively larger plant…

A: Economies of scale and diseconomies of scale are important concepts in economics. Economies of scale…

Q: How the shape of the total variable cost curve (TVC) and total cost curve (TC) is related with the…

A: Cost refers to the financial valuation of products and services purchased by manufacturers and…

Q: 27) What do we know about fixed costs?  A. They are incurred only when production is at capacity…

A: The firms operating in a market incur two types of costs, fixed costs, and variable costs. Variable…

Q: The figure below shows a firm's long-run average cost curve (LAC) in light 2. blue. Three of the…

A: A long run average cost curve is known as an arranging bend. This is on the grounds that a firm…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: There are 3 possibilities in short run: If the firm uses only 1 factory then its short run will be…

Q: (a) How can you tell if these cost curves are for the short run or the long run? (b) What does the…

A: Total costs TC equals TFC plus TVC. Total fixed costs (TFC) are the total payment of the firm on…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Short-run total cost (SRTC) and long-run total cost (LRTC) curves increase in the output value…

Q: d. Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns…

A: Diseconomies of scale is occurs when the per unit cost of output increases as output level increases…

Q: 2.1 For each of the following, decide whether you agree or dis- agree and explain your answer: a.…

A: There are decreasing, increasing and constant returns to scale.

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale takes place when there is reduction in the cost of production with the…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: since you have asked multiple questions and according to our policy we can only solve the first part…

Q: Number of Factories 1 2 3 Q = 100 Q = 200 440 620 800 280 380 480 (Dollars per bike) Q = 300 240 240…

A: In case of short-run average cost functions, the firm incurs two types of costs:-Fixed costs and…

Q: Which statement must be false? a)  When a firm has increasing returns to scale in production, its…

A: Increase return to scale : where production  increase proportionally same as input increased. .…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Average cost =total cost/ quantity Increasing Returns to scale shows that LAC decreases by…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.