21) What is the difference between "diminishing marginal returns" and "diseconomies of scale"?

A) Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.

B) Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.

C) Diminishing marginal returns, which applies only in the short run when at least one factor is fixed, explains why marginal cost increases, while diseconomies of scale, which applies in the long run when all factors are variable, explains why average cost increases.

D) Diminishing marginal returns ,which applies only in the long run when all factors are variable, explains why average variable cost increases, while diseconomies of scale, which applies in the short run when at least one factor is fixed, explains why average total cost increases.

Figure 8-5

22) Refer to Figure 8-5. Suppose for the past 8 years the firm has been producing Qd units per period using plant size ATC4.  Now, following a permanent change in demand, it plans to cut production to Qc units. What will happen to its average cost of production?

A) In the short run, its average cost falls from $47 to $41, and in the long run, average cost falls even further to $37.

B) In the short run, its average cost rises from $47 to $55, and in the long run, average cost falls to $41.

C) In the short run, its average cost falls from $47 to $37, and in the long run, average cost rises to $41.

D) In the short run, its average cost rises from $47 to $55, and in the long run, average cost falls to $37.

23) Refer to Figure 8-5. Identify the minimum efficient scale of production.

A) Qa

B) Qb

C) Qc

D) Qd

24) Assume that 1366 Technologies initially does not sell enough solar wafers to realize economies of scale. To reach economies of scale, 1366 Technologies must

A) produce and sell more wafers at a lower average total cost.

B) produce and sell fewer wafers at a lower average total cost.

C) produce and sell more wafers at a higher average total cost.

D) produce and sell fewer wafers at a higher average total cost.

25) A positive technological change which decreases the price of inputs 1366 Technologies uses to produce solar wafers will cause

A) 1366 Technologies' average total cost curve and marginal cost curve to shift downward.

B) 1366 Technologies' average total cost curve but not its marginal cost curve to shift downward.

C) 1366 Technologies' marginal cost curve but not its average total cost curve to shift downward.  

D) a movement downward along 1366 Technologies' current average total cost curve.

26) In the long run the relevant cost is total cost.

27) If the long-run average total cost curve is downward-sloping, then the firm is experiencing decreasing returns to scale.

28) If production displays constant returns to scale, then all economies of scale have been exhausted.

29) An important reason why diseconomies of scale arise is because firms may have to hire lower skilled workers as firms expand.

30) What are economies of scale? What are diseconomies of scale?

21) What is the difference between "diminishing marginal returns" and "diseconomies of scale"?

A) Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.

B) Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.

C) Diminishing marginal returns, which applies only in the short run when at least one factor is fixed, explains why marginal cost increases, while diseconomies of scale, which applies in the long run when all factors are variable, explains why average cost increases.

D) Diminishing marginal returns ,which applies only in the long run when all factors are variable, explains why average variable cost increases, while diseconomies of scale, which applies in the short run when at least one factor is fixed, explains why average total cost increases.

Figure 8-5

22) Refer to Figure 8-5. Suppose for the past 8 years the firm has been producing Qd units per period using plant size ATC4.  Now, following a permanent change in demand, it plans to cut production to Qc units. What will happen to its average cost of production?

A) In the short run, its average cost falls from $47 to $41, and in the long run, average cost falls even further to $37.

B) In the short run, its average cost rises from $47 to $55, and in the long run, average cost falls to $41.

C) In the short run, its average cost falls from $47 to $37, and in the long run, average cost rises to $41.

D) In the short run, its average cost rises from $47 to $55, and in the long run, average cost falls to $37.

23) Refer to Figure 8-5. Identify the minimum efficient scale of production.

A) Qa

B) Qb

C) Qc

D) Qd

24) Assume that 1366 Technologies initially does not sell enough solar wafers to realize economies of scale. To reach economies of scale, 1366 Technologies must

A) produce and sell more wafers at a lower average total cost.

B) produce and sell fewer wafers at a lower average total cost.

C) produce and sell more wafers at a higher average total cost.

D) produce and sell fewer wafers at a higher average total cost.

25) A positive technological change which decreases the price of inputs 1366 Technologies uses to produce solar wafers will cause

A) 1366 Technologies' average total cost curve and marginal cost curve to shift downward.

B) 1366 Technologies' average total cost curve but not its marginal cost curve to shift downward.

C) 1366 Technologies' marginal cost curve but not its average total cost curve to shift downward.  

D) a movement downward along 1366 Technologies' current average total cost curve.

26) In the long run the relevant cost is total cost.

27) If the long-run average total cost curve is downward-sloping, then the firm is experiencing decreasing returns to scale.

28) If production displays constant returns to scale, then all economies of scale have been exhausted.

29) An important reason why diseconomies of scale arise is because firms may have to hire lower skilled workers as firms expand.

30) What are economies of scale? What are diseconomies of scale?

21) What is the difference between "diminishing marginal returns" and "diseconomies of scale"?

A) Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.

B) Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.

C) Diminishing marginal returns, which applies only in the short run when at least one factor is fixed, explains why marginal cost increases, while diseconomies of scale, which applies in the long run when all factors are variable, explains why average cost increases.

D) Diminishing marginal returns ,which applies only in the long run when all factors are variable, explains why average variable cost increases, while diseconomies of scale, which applies in the short run when at least one factor is fixed, explains why average total cost increases.

Figure 8-5

22) Refer to Figure 8-5. Suppose for the past 8 years the firm has been producing Qd units per period using plant size ATC4.  Now, following a permanent change in demand, it plans to cut production to Qc units. What will happen to its average cost of production?

A) In the short run, its average cost falls from $47 to $41, and in the long run, average cost falls even further to $37.

B) In the short run, its average cost rises from $47 to $55, and in the long run, average cost falls to $41.

C) In the short run, its average cost falls from $47 to $37, and in the long run, average cost rises to $41.

D) In the short run, its average cost rises from $47 to $55, and in the long run, average cost falls to $37.

23) Refer to Figure 8-5. Identify the minimum efficient scale of production.

A) Qa

B) Qb

C) Qc

D) Qd

24) Assume that 1366 Technologies initially does not sell enough solar wafers to realize economies of scale. To reach economies of scale, 1366 Technologies must

A) produce and sell more wafers at a lower average total cost.

B) produce and sell fewer wafers at a lower average total cost.

C) produce and sell more wafers at a higher average total cost.

D) produce and sell fewer wafers at a higher average total cost.

25) A positive technological change which decreases the price of inputs 1366 Technologies uses to produce solar wafers will cause

A) 1366 Technologies' average total cost curve and marginal cost curve to shift downward.

B) 1366 Technologies' average total cost curve but not its marginal cost curve to shift downward.

C) 1366 Technologies' marginal cost curve but not its average total cost curve to shift downward.  

D) a movement downward along 1366 Technologies' current average total cost curve.

26) In the long run the relevant cost is total cost.

27) If the long-run average total cost curve is downward-sloping, then the firm is experiencing decreasing returns to scale.

28) If production displays constant returns to scale, then all economies of scale have been exhausted.

29) An important reason why diseconomies of scale arise is because firms may have to hire lower skilled workers as firms expand.

30) What are economies of scale? What are diseconomies of scale?

They have a magnificent team. These people are always kind and willing to listen to your concerns or issues. Better yet, your assignment is always ready before the time, they usually send you a draft to double-check before they finalize your paper.

Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.

The work has not been graded but I like the output that was submitted to me. Is it possible for the same prof to do the next assignment I will be submitting? If possible, I will greatly appreciate it.

My third using this writer and absolutely amazing work! Very punctual and very understanding.

Outstanding job in writing my paper. I am always thrill to receive a well written paper that follows the instructions and the thorough details put into my paper. The quality of this paper is beyond awesome. Thank you so much.

I absolutely love this writer! He/she always cranks out a fabulous paper and follows the assignment guidelines/instructions perfectly. Thanks again for always providing such quality work!!!

It took some time to achieve the product I was looking for, but we eventually got there. I do feel like a lot of hard work was put into this, and it even exceeded the page requirement. I'm pretty pleased overall. I give my thanks.

Outstanding work! This writer followed every instruction and my paper came back with an A! I recommend to anyone needing help! Thank you again ❤️

Outstanding job in writing my paper. I am always thrill to receive a well written paper that follows the instructions and the thorough details put into my paper. The quality of this paper is beyond awesome. Thank you so much.

Made 100% on both the outline and the paper. Quick turnaround time and my writer responded within 30 min or less. Any edits my instructor needed, my writer was patient and worked diligently to accomplish the task. Would recommend my writer to anyone!

You are making my life so much easier! I am a single mom that works and goes to school. You guys are helping me with my projects so I can have more free time with my son.

I was sure it can fit in a single page but the next time I will add one more page because I am impressed with your professionalism and quality. Will use many more times till I graduate.

Simple registration and quality services. I just ordered one paper, and it was good enough to pass the exam. That is what I need the most. Good job.

I couldn’t finish my freaking essay, and I was very desperate. A friend of mine sent me a link, and that is how I found out about you guys. Thank you for professional tips and editing. Now, I understand how to write it properly.

I’m so grateful to you since you managed to complete my term paper in one day! You are definitely the best company ever!

I am sure on your ability to provide any type of paper I will order. I wish I could develop that skill your writers have to be able to have a flow of ideas and excellent sequencing of thoughts in writing.

I ordered a thesis paper and was satisfied. All the guys were polite and highly professional, even when I wrote to them several times per day. Thanks for your passion!

I turned to the service twice, and my papers always were beyond the expectations. To tell the truth, I was ready to find some grammar errors or something like that. However, everything was neat and tidy.

My friend recommended Doctor My Essay to me. It is convenient! Now we both turn to the service periodically coz wanna save some time and use it more effectively. I know that while I’m developing my startup, an expert is working on paper. Time management in work!

I write all paper works by myself but have some problems with literacy. Actually, I have enormous problems because English is not my native language. However, with proofreading from Doctor My Essay, I can relax and don’t be ashamed of mistakes.

Your ability to write concisely is a finding. The paper has a solid argument. It’s clear that the writer understood central claim about the topic. He also presented original ideas to consider.

That paper got the highest grade in my class and the professor thinks I’m the smartest student. Lol.

I was convinced that paper writing services are the fiction for naive students. But when it came to my research paper that was to be composed in 72 hours, I had no other options. I made the right choice when I ordered it from you!

I was also satisfied with the service. Usually, I write everything by myself, but this time ( I have no idea how it happens!) I missed the deadline. My writer was very responsible, wrote the essay quickly, and kept the instructions. Nice to know that such experts exist!

It is really affordable! The prices start from 9$, which is an excellent proposal on the market. Recently I worked with another service that took much more money and provided lower quality papers.

I am absolutely satisfied. I am first timer here. Revision was made quickly, and the author met my expectations. Thanks a lot. Paper is phenomenal.

Having heard a lot of negative reviews about such services, I was a bit skeptical. However, our cooperation with Doctor My Essay was without pitfalls. I made two comments about the final work, and they re-wrote some parts very promptly. I am satisfied and will turn to them in the future.

It was my first experience in online ordering, and I was a bit nervous. However, this was for nothing. I’ve got a high mark!

I understand that buying essays is a doubtful thing. You don’t put effort, don’t represent your ideas… However, I don’t perceive Doctor My Essay as a standard service. They don’t sell papers. They share high expertise!

According to my previous experience, this service is really the best. They support the client and have competitive writers. I give them a perfect score!

Nice service! It is cool that you can use the calculator on the main page and understand the price policy. For me, it is a huge plus!

Thanks to God I found this service! If I didn’t send my research to the teacher on time, he would eat me. I tell you! However, with doctor my essay service, I met the deadline, and I am still alive.

Your service is excellent! Convenient and not expensive. Thanks for that!

If you have problems with time management, just like me, you need to cooperate with Doctor My Essay. Once you registered and made the order, you understand how easier it makes your life! Everything is online: ordering, communication… You can control the process everywhere and be sure that an expert will provide a high-level paper.