Question: (a) Why is it that when small firms get bigger (increase their scale), they frequently see their average total costs decrease? (b)Axcon is a small

(a) Why is it that when small firms get bigger (increase their scale), they frequently

see their average total costs decrease?

(b)Axcon is a small firm engage in theproduction of pens. The table below shows the firm's total costs(TC) and variable costs(VC) at each level of quantity.

(a) Why is it that when small firms get bigger (increase their

Quantity TC FC VC AFC AVC ATC MC (RMOOO) (RMOOO) (RMOOO) (RMOOO) (RMOOO) (RMOOO) (RMOOO) (RMOOO) 10 1 18 2 24 28 4 30 5 32 36 7 44

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Determine the diameter and packed height of a countercurrently operated packed tower required to recover 99% of the ammonia from a gas mixture that contains 6 mol% NH3 in air. The tower, packed with...

Find the Forbes 2000 list of the world's largest firms atwww.forbes.com/lists/.From the top 20 list, select three firms from three different industries and discuss the likely sources of economies of...

Why is it that when small firms get bigger (increase their scale), they frequently see their average total costs decrease?

Why is it that when small firms get bigger (increase their scale), they frequently see their average total costs decrease? kindly provide with references with the answer

Why is it that when small firms get bigger (increase their scale), they frequently see their average total costs decrease

Why is it that when small firms get bigger (increase th eir scale), they frequently see their average total costs decrease?

O (PC - PP) x QE Zoom out (PC - PP) x (QE - Q") x Question 3(Multiple Choice Worth 1 points) (03.02 MC) Use the graph to answer the question that follows. Price MC ATC ATC, Quantity (units) The shift...

This is International Business and Trade subject. Please help me answer the following (briefly and concisely): 1. Differentiate Vertical and Horizontal Foreign Direct Exchange Decisions. 2. What do...

financial SUBDOMAINS: 325.4 COMMUNICATING EFFECTIVELY IN ORGANIZATIONS 326.1 MANAGING INTERNAL COST & CONTROLLING FINANCES 326.2 MANAGING CAPITAL & FINANCIAL ASSETS 326.4 MANAGING ENTERPRISE RISK &...

1. Royal Dutch Shell has been recognized as one of the most effective corporations to use scenarios as part of their environmental scanning and forecasting process. The use of scenarios involves: a....

What are the implications for both cost and flexibility of automation? Do you agree with the assertion made by of the managers in the case "if you automate, you stagnate?"

Traditional Managerial accounting was all about managing costs whereas Management accounting has undergone a sea change, given the change in the overall global environment. Discuss and describe in...

Whether an agency relationship arose from facts and circumstances is for a judge or jury to decide. True False

What is the maximum number of coffee cups in Exercise 8 that can be stacked vertically on the saucer and not cause a permanent dent in the plate? Assume that a silicone rubber 19 has this...

The following financial information is available for Plummer Corporation. The weighted-average number of shares of common stock outstanding was 80,000 for 2016 and 100,000 for 2017. Instructions...

During the design and development stages of a remote meter reading system for residential electricity use, the two engineers working on the project for the City of Forest Ridge noted something...

On its issue date, an investor paid $99,760 for a $100,000 face value, 98-day Government of Canada T-bill. What was the investor's required rate of return?

The data below shows the average hourly megawatts of electricity used in New York City for the years 1993 through 2004. a. Plot the series and explain what can be learned from this plot. b. Calculate...

The tragic death of George Floyd in May 2020 and other similar events have reignited momentum to reform our criminal justice system. Unfortunately, the debate has become binary: back the blue or...

12. Think of a situation where you felt particularly powerless. It must be a real event that you remember relatively well. Try to think back. What was it you imagined just before you felt powerless...

13. Try to imagine how you would feel if you had tackled the problem, the con-flict, the challenge, etc., that made you powerless in task 12, for example upstairs, confident, confident, calm,...

15. Ask yourself the following questions: What do you want to remember from your everyday experiences? These are the experiences that fill most of your life. They may take 9099% of your time. What do...