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Costs increase as output increases due to the concept of economies of scale. Initially, as production increases, costs per unit decrease as fixed costs are spread out. However, eventually, diminishing returns set in, causing costs to rise as more resources are needed to produce each additional unit.
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What increases the work output of a simple machine?
Increasing the input force or the distance over which the force is applied can increase the work output of a simple machine. Reducing friction within the machine can also help to increase its efficiency and work output.
Why efficiency curve first increases than decreases after reaching a maximum value?
The efficiency curve typically increases at first because as output increases, fixed costs are spread over more units, leading to greater efficiency. However, after reaching a certain point, diminishing returns set in as additional output causes production costs to rise due to factors like resource constraints or increased complexity, resulting in a decrease in efficiency.
What increases as efficiency of a machine increases?
As the efficiency of a machine increases, the output of the machine for a given input also increases. This means that the machine can do more work with the same amount of energy input. Additionally, the operating costs of the machine may decrease as efficiency improves, since less energy is wasted.
Which factor increases as the efficiency of a machine increases?
The output work done by the machine increases as the efficiency of the machine increases. This is because efficiency is the ratio of useful work output to the total work input, so as efficiency increases, more of the input work is converted into useful output work.
As output increases what happens to average physical product?
As output increases, average physical product initially increases due to specialization and efficient resource allocation. However, it eventually starts to decline due to diminishing returns, whereby each additional unit of input produces smaller increases in output.
Do the fixed costs increase as output increases?
No these are costs such as rent stay basically same irrespective of output
If average cost increases does marginal cost increase?
It depends if the increase in Average Cost is caused by an increase in Fixed Costs or an increase in Variable Costs. An increase in Fixed Costs will not increase MC, because FCs do not vary with output (by definition) And increase in Variable Costs will increase MC
What are example of expenses?
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
What are example of variable expenses?
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
When marginal costs are below average cost at a given output one can deduce that if output increases what happens?
when marginal costs are below average cost at a given output, one candeduce that, if output increases dose average costs fall or marginal costs will fall
As output increases the average fixed costs?
remain constant
As output increases total variable costs?
If the output increases, so will the variable cost. Though, variable cost is not directly proportionate to the output, still it will witness an incline.
Would glucose in urine increase output or decrease it?
increases
What is the behavior of total variable cost as output increases?
tvc will also inscrease as output increase
What increase if you use more cells?
the power output increases
According to aggregate supply curve what happens as the price level increases?
firms have more of an incentive to increase output
For the average total cost curve of a firm without economies of scale what happen to costs as output increases?
costs go down
