Profit Maximizing Under Perfect Competition And Monopoly

Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

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Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

A. average costs to remain constant
B. average costs to decrease
C. average costs to increase
D. marginal costs to increase

Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?

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Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?

A. If TP is declining, then AP is negative
B. If AP = MP, then total product is at a maximum.
C. If AP exceeds MP then AP is falling
D. If AP is at a maximum, then MP is also,

The short run, as economists use the phrase, in characterized by ?

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The short run, as economists use the phrase, in characterized by ?

A. at least one fixed factor of production and firms neither leaving nor entering the industry.
B. no variable inputs – that is, all of the factors of production are fixed
C. all inputs being variable
D. a period where the law of diminishing returns does not hold

Which of the following is most likely to be a variable cost for a firm ?

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Which of the following is most likely to be a variable cost for a firm ?

A. The franchiser’s fee that a restaurant must pay to the national restaurant chain
B. The payroll taxes that are paid on employee wages.
C. The monthly rent on office space that it leased for a year
D. The interest payments made on loans.