Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Table 13-15 Output (Q) 0 110 Total Cost (TC) $40 $60 S90 S130 $180 $240 22. Refer to Table 13-15. What is the total fixed
Table 13-15 Output (Q) 0 110 Total Cost (TC) $40 $60 S90 S130 $180 $240 22. Refer to Table 13-15. What is the total fixed cost for this firm? a. $30 b. $20 c. $40 d. $50 23. Refer to Table 13-15. What is average fixed cost when output is 40 units? a. $8.00 b. $3.32 c. $1.00 d. $5.00 24. If long-run average total cost decreases as the quantity of output increases, the firm is experiencing a. fixed costs greatly exceeding variable costs. b. economies of scale. c. diseconomies of scale. d. coordination problems arising from the large size of the firm, 25. In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits a, economies of scale because average total cost is falling as output rises. b. diseconomies of scale because average total cost is rising as output rises. c. constant returns to scale because average total cost is constant as output rises. d. diseconomies of scale because total cost is rising as output rises
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started