Use the data in the above table and suppose that labor is the only variable factor of production. At what level of output does the marginal cost start to rise at Decent Donuts?
A) 0 dozen donuts
B) 111 dozen donuts
C) 128 dozen donuts
D) There is not enough information given to determine when the marginal cost starts to increase.
B
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Adam Smith believed that through division of labor and specialization, producers could significantly increase their output. This is an example of a(n) ______.
a. aggregate b. resource c. correlation d. theory
If Sara can produce 25 muffins for a total cost of $15, but her production process is subject to increasing marginal costs, which of the following could be the total cost of producing 100 muffins?
A. $15 B. $17.50 C. $80 D. $60
All of the following illustrate how government can correct for positive externalities EXCEPT
A. regulation. B. government financing and production. C. charging effluent fees. D. subsidies.
Game theory between two firms with two outcomes tends to emphasize
A. purely competitive outcomes. B. organizational architecture. C. intrafirm decision making. D. noncooperative games.