Question: Under constant returns to scale, average cost (falls, rises, remains constant) as the quantity produced increases. Over this range of output, the marginal cost curve

  1. Under constant returns to scale, average cost(falls, rises, remains constant)as the quantity produced increases. Over this range of output, the marginal cost curve is(equivalent to, lower than, higher than)the average cost curve.

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:

Under constant returns to scale, average cost A. falls B. rises C. remains constant as the quantity produced increases. Over this range of output, the marginal cost curve is A. Lower than B. Higher...

Q:

Under constant returns to scale, average cost as the quantity produced increases. Over this range of output, the marginal cost curve is the average cost curve.

Q:

Under decreasing returns to scale, average cost A. remains constant B. falls C. rises as the quantity produced increases. Over this range of output, the marginal cost curve is A. higher than B....

Q:

Under increasing returns to scale, average cost A. Falls B. Remains Constant C. Rises as the quantity produced increases. Over this range of output, the marginal cost curve is A. Lower than B. Higher...

Q:

chorizontal. below the market demand curve. the same as the market demand curve. Question 3 2 pts Which of the following statements is true? In long run, all firms in a perfectly competitive market...

Q:

Question 2. The market supply and demand curves for a product are: QS=0.5P (supply curve) QD=60-2P (demand curve) where Q is the quantity of the product and P is the market price. (1). Calculate the...

Q:

Please help me with these questions 31. Constant returns to scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs...

Q:

Price, cost (per widget) Assume that there are 2 countries, country A and country B and they produce the same good. Before trade, price in country A is lower than it is in country B. Explain the...

Q:

Attempts 2. Individual Problems 7-4 Average / 1 falls remains constant rises Under increasing returns to scale, average cost cost curve is the average cost curve. as the quantity produced increases....

Q:

XYZ Corporation produced 300 units of output but sold only 250 of the units it produced. The average cost of production for each unit of output produced was $100. Each of the 250 units sold was sold...

Q:

a. Find the mean and standard deviation of x for a binomial probability distribution with n = 16 and p = 0.5 b. Use a computer to construct the probability distribution and histogram for the binomial...

Q:

An organ pipe that is closed at one end is filled with helium. The pipe has a fundamental frequency of 660 Hz in air at 20oC. What is the pipes fundamental frequency with the helium in it?

Q:

Pools are well - suited for organizations that: Have little or no excess loss exposure. Are looking to transfer risk. Have operations in multiple states. Are too small to form a captive insurer. A...

Q:

QUESTION 4 Summarize the workplace trends of diversity and the inclusive workplace, work-life integration, remote work, and emerging employment relationships. (6 Marks)

Q:

6. Give examples of when we give a situation a new name, the situation is perceived differently.

Q:

11. Take a familiar problem as your starting point. a) Frame the problem so that it promotes aggressive behaviour. b) Frame the problem so that it promotes defensive behaviour.

Q:

2. Give examples from your everyday life that understanding the context is crucial to how you act.