In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?
A. an increase in average total costs
B. diseconomies of scaleC. economies of scale
Which of the following is a variable cost in the short run ?
A. rent on the factoryB. wages paid to factory labor
C. interest payments on borrowed financial capital
D. payments on the lease for factory equipment
If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?
A. is liner (a straight line)
B. could be any of these answersC. becomes steeper as the quantity of output…
If there are implicit costs of production ?
A. accounting profit will exceed economic profit
B. economic profit will always be zero
C. economic profit will exceed accounting profit
D. accounting profit will always be zero
Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory…