Answer Happy

Below is short-run cost data for four different plant sizes. Plant 2 has exactly twice as many inputs as does Plant 1. Plant 3 has exactly three times as many inputs as does Plant 1 and Plant 4 has exactly four times as many inputs as does Plant 1. Output 15 10 15 20 25 30 35 40 45 50 $AC: Plant 1 4 AC: Plant 2 $ AC: Plant 3 $ AC: Plant 4 12 14 15 15.25 11 13 14.25 12 12 14 14 13 17 21 26 32 39 47 Select one: OA. It is U shaped. 111 12 13 14 17 21 25 13.75 12.75 12 11.50 11 11.50 12 12.75 13.75 12.20 11.70 11.30 11 11.30 11.70 Refer to the information above to answer this question. Which of the following statements about the shape of the LRAC curve is correct? OB. It declines until an output of 40 is reached and is horizontal there after. OC. It has an inverse U shape. OD. It is horizontal. OE. It declines continuously.

Which of the following would illustrate diseconomies of scale? Select one: O A. Marginal cost below short-run average cost. OB. The rising segment of the LRAC curve OC. The rising segment of the SRAC curve. OD. A growing margin between short-run and long-run average cost as output increased. O E. Marginal cost above short-run average cost.

Cost Plant 1 Plant 2 Plant 3 ACI AC2 kw. 01 02 03 Of 05 AC3 LRAC Quantity of Output Refer to the graph above to answer this question. All of the following statements except one dre correct. Which is the exception? Select one: O A. The long-run average cost curve illustrates both increasing and constant returns to scale. O B. Constant returns to scale exist between outputs Q4 and Q5. O C. AC₁, AC₂ and AC3 are long-run average cost curves. O D. An increase in output from Q, to Q3 could occur in plant 1. E. Both the short-run and the long run-costs are illustrated in this graph.

10 30 200 LRAC Quantity of Output Refer to the graph above to answer this question. Can this firm produce an output of 200 at an average total cost of $40? Select one: OA. Yes, and that output would be economic capacity. B. No, this combination is unobtainable given present resource prices and the current state of technology. OC. Yes, but production would be inefficient. D. No. this combination would be unobtainable because production is inefficient

Below is short-run cost data for four different plant sizes. Plant 2 has exactly twice as many in Plant 1. Plant 3 has exactly three times as many inputs as does Plant 1 and Plant 4 has exactly many inputs as does Plant 1. Output 5 10 15 20 25 30 35 40 45 50 $ AC: Plant 1 4 AC: Plant 2 $ AC: Plant 3 $AC: Plant 4 12 14 15 11 13 12 12 14 11 12 13 14 17 21 25 17 21 26 32 39 47 13.75 12.75 12 11.50 11 11.50 12 12.75 13.75 15.25 14.25 14 13 12.20 11.70 11.30 11 11.30 11.70 Refer to the information above to answer this question. What is the best plant to use for an output of: Select one: OA. Plant 1. OB. Plant 2. C. Plant 3. OD. Plant 4. OE. Any of the four plants would be fine.