Thinking of a coffee shop as a unit of capital, Starbucks has decided to increase the number of coffee shops and workers because it wants to shift the average total cost curve upward wants to produce on a new longrun average cost curve is currently experiencing economies of scale is producing at a point below its longrun average cost curve WP??? is not producing on its lowest possible average total cost curve This is a decision because it involves long-run; labor shortrun; a shortrun cost curve long-run; changing the plant shortrun; changing the plant WP??? long-run; shifting a long-run curve By increasing the number of coffee shops, Starbucks takes better advantage of economies of scale because the long-run average cost curve will shift downward Starbucks will move from a point above its LRAC curve to a point on the downwardsloping portion of its LRAC curve {j} A. B. {I} C. a larger number of stores always reap economies of scale D. the longrun average cost curve will shift upward {I} E. a smaller number of stores always experience diseconomies of scale Starbucks is going venti in China Starbucks has opened a 30,000-square-foot Roastery in Shanghai, twice as large as its Roastery in Seattle. Starbucks plans to open a new coffee shop in china every 15 hours on average. Source: CNN Money, December 5, 2017Which of the following statements describes a firm in a perfectly competitive market? Question list K . . . In a perfectly competitive market, each firm O Question 22 O A. produces as much as it can and either makes a profit or incurs a loss in the short run but breaks even in the long run O B. can influence the price that it charges in the short run but not in the long run Question 23 O C. faces a perfectly inelastic demand for its product, so it can select the price that maximizes its profit O D. is a price taker and produces the quantity that maximizes its profit in both the short run and the long run Question 24 O Question 25 O Question 26_ _ Colorado companies plan to hire in 2016 QUEStlon \"St I6 Nearly a quarter of Denver-area technology executives plan to increase production and add new positions in 2016. Source: Denver Business Journal, December 21, 2015 How does increasing production by adding new positions changes a Denverarea firm's shortrun average cost and mar inal cost? O Quest'on 22 9 How will a rm's shortrun average cost curve and marginal cost curve change if the wage rate rises? . E> Quest on 28 The Denverarea technology rms are currently producing at minimum shortrun average total cost. Quest' 0n 2 4 An increase in output and employment short-run average total cost and marginal cost. c: :- A. decreases; increases . 4:: 3 B. increases; does not change 0 Quest on 25 (j ;. C. decreases; decreases I: ;. D. increases; increases O Quest'on 26 {:3 E. increases; decreases If the wage rate rises, the shortrun average total cost curve and the marginal cost curve Quest'on 27 {:3 A. shifts upward; shifts downward ('3 B. does not change; does not change . .;.__;. C. shifts upward; shifts upward O Quest on 28 _ Ii '1' D. does not change; shifts upward I; .3 E. shifts upward; does not change Quest'on 29