Question: Increasing returns t o scale refers t o a situation where a firm's average cost curve slopes . Therefore, a n increase i n the

Increasing returns to scale refers to a situation where a firm's
average cost curve slopes
. Therefore, an increase in
the firm's scale of production leads to
average costs.
Increasing returns t o scale refers t o a

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!

Q:

1. Explicit and implicit costs Juan and Julia contributed $ 50,000 of their own money to the company They bought equipment for $ 3,000 They hired an employee with a salary of $ 20,000 Juan quit his...

Q:

Question 4 (20 minutes) The province wishes to improve our environment and accordingly will subsidise your municipality $ 2 for every $1 you spend on sewage facilities up to a maximum of $ 1920. Your...

Q:

The term economies of scale refers to: A situation in which the firms average total cost curve shifts upward as more output is produced. A situation in which the firms average total cost curve has a...

Q:

QUESTION 18 Assume that product A is measured on the vertical-axis and product B is measured on the horizontal-axis. The income budget line? of the consumer is R48, the intercept on the A-axis is 8...

Q:

QUESTION 1 Recent income distribution figures in the United States show O less equity. O greater equity. O slightly more inequality. O less inequality. QUESTION 2 Income in the form of goods and...

Q:

1d Chapter Six Cost of Production 245 LAC SAC4 ;/ z B / ......r,../a "I, / // sAC / 2/ SACS / / ,,/ ///,// Each point on the long-run average cost curve (LAC) represents a least cost combination of...

Q:

Help answer the following problems...all parts needs to be done 1. (a) (b) (b) (In) (E) (1) (\"1 Dene the economic terms: individual (firm) supply; market supply. Explain. with the aid of labelled...

Q:

Paper Presentation on Marginal Revenue Product And Optimal Employment Level: An Illustration of Student Involvement Dr. Eugene Steadman, Jr. Averett University 7Th Annual Economics Teaching...

Q:

Am stuck please someone to help me solve the following questions for easy revisions please 7. (a) Explain FOUR assumptions underlying the Law of Comparative Advantage (20 marks) (b) Ireland relies...

Q:

state all questions with a brief explanation please 3. (a) (i) State the Law of Diminishing Marginal Returns. (ii) Using the table below, state after which level of employment diminishing marginal...

Q:

Maggie Oh performed an audit of a client that had undergone flooding to its operations in St-Jean Sur Richelieu. The client was insured and was able to keep operating. However, there was material...

Q:

Has the imposition by the courts of the necessity to observe past practices of the parties under a contract been beneficial or harmful to the collective bargaining process?

Q:

If one insured has a policy for $ 1 0 0 , 0 0 0 . 2 0 year level term policy and another has 1 0 0 , 0 0 0 for 2 0 year decreasing term policy. What is a true statement about these policies

Q:

Choose one International Financial Institution that funded differentprojects/programs in the Philippines for the last ten years. Content of the paper: Name of the Project/Program Location of the...