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Question
Whenever average variable cost is declining with increases in output:a. marginal cost is always declining as average total cost declines
b. average total cost at first decreases and then increases with output
c. marginal cost is always declining as average total cost increases
d. marginal cost at first decreases and then increases with output
e. marginal cost at first increases and then decreases with output
Answer
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Related questions
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b. QC = 50, QS = 100
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Q:
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If a firm in a monopolistically competitive industry is profit maximizing, it should choose its level of advertising such that the marginal revenue of an additional dollar of advertising:
a. is equal to the elasticity of its demand curve minus 1
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Q:
So long as price exceeds average variable cost, in the model of monopolistic competition, a firm maximizes profits by producing where:
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Q:
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Q:
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Q:
In the model of monopoly, there:
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Q:
If a representative firm with long-run total cost given by TC = 50 + 2q + 2q2 operates in a competitive industry where the market demand is given by QD = 1,410 - 40P, in the long-run equilibrium there will be:
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Q:
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a. 0 units
b. 1 unit
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d. 5 units
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Q:
A representative firm with long-run total cost given by TC = 20 + 20q + 5q2 operates in a competitive industry where the short-run market demand and supply curves are given by QD = 1,400 - 40P and QS = - 400 + 20P. If it continues to operate in the long run, its profit-maximizing level of output is:
a. 1 unit
b. 2 units
c. 4 units
d. 5 units
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If the perfectly competitive market demand for tanning beds shifts from QD,91 = 1,230 - 5P to QD,92 = 740 - 5P and the market supply is given by QS -100 + 2P, then the change in equilibrium quantity will be:
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Q:
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b. differentiated product with considerable control over price
c. standardized product with no control over price
d. differentiated product with no control over price
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Q:
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a. short-run average cost is minimized
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c. long-run average cost equals long-run marginal cost
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Q:
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Q:
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a. increase with increases in output
b. decrease with increases in output
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d. increase initially and then decrease with increases in output
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Q:
An example of implicit costs is the:
a. bad-debt liabilities arising out of excessive sales on credit
b. wages paid to the owners' children
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Q:
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a. between O and A
b. between A and B
c. between B and C
d. between C and D
e. beyond point D
Q:
The equation for the marginal cost function represented in the diagram is:
a. MC = 100
b. MC = 10Q
c. MC = 10Q2
d. MC = 100Q
e. MC = 100 + 5Q2
Q:
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a. Q* = a/2d
b. Q* = b/2d
c. Q* = c/2d
d. Q* = b/3d
e. Q* = c/3d
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b. $550
c. $600
d. $625
e. $750