The car industry consumes a large portion of the steel market. What kind of cost industry is it? A constant cost industry An increasing cost industry No answer text provided. O A decreasing cost industry

The car industry consumes a large portion of the steel market. What kind of cost industry is it? A constant cost industry An increasing cost industry No answer text provided. O A decreasing cost industry

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4CQQ

See similar textbooks

Related questions

Q: Measures of Cost for Charlie's Chocolate Factory Quantity (Boxes of Chocolates) Variable Costs Total…

A: Total cost is a sum of fixed cost and variable cost.

Q: Assume that in the short run a firm is producing 100 units of output, has average total costs of…

A: Total cost = total fixed cost + total variable cost Now ATC = $200, output = 100 ATC = TC /output…

Q: There is a different short-run ATC curve for each level of * variable cost. variable inputs. fixed…

A: The ordinary shape for a short-run normal expense curve is U-molded with diminishing normal expenses…

Q: Output Total Cost Marginal Average Average Average (TC) Cost (MC) Fixed Cost Variable Total Cost…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: he short-run and long-run average cost functions of a firm are generally U-shaped. This implies high…

A: In economics, a CF {"cost function"} is described as a function of an output quantity and P {prices}…

Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC =…

A: Average cost is the ratio of total cost and quantity

Q: ist and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines.…

A: The firms incur a certain amount of cost to produce a certain amount of output. Production cost is…

Q: As the quantity produced increases, then a. variable cost always decreases b. average fixed cost…

A: Total cost is defined as the sum of all exposed being incurred by the producer in order to producer…

Q: onvert the following total variable cost schedule for UP Against the Wall Industries into the total…

A: Total cost = Total variable cost + Total fixed cost Average fixed cost = Total fixed cost /…

Q: L Q TVC TC AVC AFC ATC MC 4 20 5 26 6 30…

A: Total cost is the sum of fixed and variable costs. Average cost is the per unit cost of output.…

Q: Both Stan and Kyle own potate chip factories. Stan's factory has low fixed costs and high variable…

A: Stan : Low Fixed Costs , High Variable Costs Kyle : High fixed Costs , Low Variable Costs Fixed…

Q: Cost LRAC 40 30 20 10 100 200 400 800 Output c. What is the firm experiencing as it increased it…

A: The graph shows the long run average cost curve. c) If the firm increases the scale of operations…

Q: Cost £ AC Quantity per week Q Figure 3 Short run average cost curve for a firm Figure 3 shows the…

A: Cost refers to the value of all the inputs that are used up in the production of a good or in the…

Q: Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases…

A: Cost is the expenditure that is incurred in producing goods and services. It has two components that…

Q: An ice cream producer has ﬁxed costs of $70,000 per month, and it can produce up to 15,000 ice cream…

A: (a) Let the breakeven level of production be x ice cream tubs per month At break-even, Total revenue…

Q: A company has the following output and total costs. It can sell each Calculate the average and…

A: marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: FarFlung make computer keyboards. They use both labour, L, and materials, M, in their production of…

A: Q = LM Q = 160,000 MPL = dQ/dL = M MPM = dQ/dM = L

Q: Assume that the market price per kilogram of beet pulp is $0.3 and many relatively identical farms…

A: Given The market price for beet pulp is $0.3 There are many identical firms in the market. The…

Q: With appropriate examples, distinguish between (i) short run and long run (ii) fixed cost and…

A: The most important aspect in the business firms is the time period and the production amount as well…

Q: 12) Hector's mill produces flour. His short-run total cost function is C(y) = 200+800y, where y is…

A: Profit maximisation is the ultimate goal of every private firm operating in the market.

Q: Output Total Cost 0 24 1 33 2 41 3 48 4 54 5 61 6 69 Refer to the above data. The…

A: marginal cost measures the additional cost incurred in order to produce an additional unit of…

Q: The table represents the monthly output of five companies in the electric scooter manufacturing…

A: The minimum efficient scale is the output level corresponding to the minimum value of LRAC (i.e.,…

Q: Which of the following is correct with respect to economic profit? PLEASE EXPLAIN THANKS! A.…

A: The main objective of any firm is profit maximization and a firm maximizes its profit by producing…

Q: With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50.…

A: Given: Total Fixed Cost = 400. Average Total Cost = $3 Average Variable Cost = $2.50

Q: Ball Bearings, Inc., faces costs of production as follows:…

A: Cost of production refers to the overall cost incurred by a company to manufacture a given amount of…

Q: For an increase in output, average costs change by more in the short-run than in the long-run, but…

A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…

Q: Problem 9: Given below is the cost schedule of a firm. Its average fixed cost is 20 when it produces…

Q: Assume the following cost data are for a purely competitive producer Total Product AFC AVC ATC…

A: The shutdown point of a firm describes the minimum level of marginal revenue imperative for the firm…

Q: The Average total cost curves, the original ATCO and when an extra café is added ATC, is shown in…

A: When firms operate in a market, they incur different costs. The total cost is the sum of fixed costs…

Q: Assume that the cost data in the following table are for a purely competitive producer:

A: In perfect competition, there is a large number of buyers and sellers and sellers are selling…

Q: At the minimum-cost output OA. average variable cost must equal marginal cost. B. average fixed cost…

Q: Define fixed and variable costs of production. Why do you think bigger firms may have lower average…

A: Net product costs are calculated by combining total direct resources and labor costs, and also total…

Q: Assume that In the short run a firm Is producing 100 units of output, has average total costs of…

A: Average variable cost (AVC): - it is the average value of the cost incurred due to the employment of…

Q: (*4") At nine units of output (Q-9), Average Variable Cost is (AVC=) $15 and Average Fixed Cost is…

A: Marginal cost is the additional cost when produce one or more unit here we calculate the marginal…

Q: The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for…

A: Fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: You are planning to setting up a Fruity Juice Stand. The stand itself costs IDR 2,000,000,- The…

A: Given:- Stand cost=IDR 2,000,000Plastic glass cost=IDR 5000 Please find images attached for detailed…

Q: The owner of Tie-Dved T-shirts, a perfectly competitive firm, hires you to give him economic advice.…

Q: he table below displays cost information for the production of volleyballs. Fill in the missing…

A: Given: Quantity (Q) Fixed Cost (FC) Variable Cost (VC) Total Cost (TC) Average Variable Cost…

Q: Table (a) shows the cost data for Farmer Mill, a barley farmer. Round your answers to 2 decimal…

A: Hi, thanks for the question. Since you posted multiple questions, we will answer for first three…

Q: Explain the differences between constantcost, increasing-cost, and decreasing-cost industries.

A: As the new firms enter the market, they increase the demand for production factors to produce goods…

Q: 7) What is the relationship between AFC, AVC & ATC? How are these calculated? 8) A firms produces an…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Ike's bikers is a major manufacturer of bicycles. It currently produces bikes in one factory, and…

Q: Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: There are 3 possibilities in short-run: If the firm uses only 1 factory then its short run will be…

Q: How do you derive the marginal cost (MC) curve of a firm? b) How are average variable cost (AVC) and…

A: Marginal cost is the additional cost that is incurred in order to produce an additional unit of an…

Q: 2.10 The long-run average cost curve for an industry is repre- sented in the following graph. Add…

A: The long-run average cost (LRAC) curve, which has a U-shape, plots all potential production levels…

Q: Which statement must be false? a) When a firm has increasing returns to scale in production, its…

A: Increase return to scale : where production increase proportionally same as input increased. .…

Q: Which is most hikely to be a constant cost industry? Oa Widgits do not require specialized equipment…

A: The constant cost industries are those industries whose average cost of production (AC) remains the…

Q: competitive firm faces the following market price: P=200. Variable costs are C(Q)=Q^2. The firm also…

A: In competitive market there are large number of firms producing identical goods

Question

The car industry consumes a large portion of the steel market.
What kind of cost industry is it?
A constant cost industry
An increasing cost industry
No answer text provided.
O A decreasing cost industry

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
How does fixed cost affect marginal cost? Why is this relationship important?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Are fixed costs also sunk costs? Explain.