If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ? A. be flat (horizontal) B. slope upward C. slope downwardD. be U-shaped.
When marginal costs are below average total costs ? A. average fixed cost is risingB. average total cost is falling C. average total cost is raising D. average total cost is minimized
Which of the following statements is true ? A. All costs are fixed in the short run.B. All costs are variable in the long run C. All costs are variable in the short run D. All costs are fixed in…
If a production function exhibits diminishing marginal product. its slope ? A. is linear (a straight line) B. becomes steeper as the quantity of the input increase C. could be any of these answersD. becomes flatter as the quantity of…
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…
Economic profit is equal to total revenue minus ? A. variable costsB. implicit costs C. explicit costs D. marginal costs
The efficient scale of production is the quantity of output that minimizes ? A. average fixed costB. average total cost C. average variable cost D. marginal cost
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 D.…
If marginal costs equal average total costs ? A. average total cost is falling B. average total cost is raising C. average total cost is maximizedD. average total cost is minimized
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 E. salaries…