Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above
Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's uses Plant 2. If Silvio hires the 4th worker, the firm will experience ________ marginal returns. A) diminishing
B) increasing
C) constant
D) zero
A
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________ increases the quantity of capital, and ________ decreases the quantity of capital
A) Depreciation; net investment B) Investment; saving C) Gross investment; net investment D) Net investment; gross investment E) Investment; depreciation
The entry of new firms into a monopolistically competitive market makes the demand curves for the existing firms more elastic
Indicate whether the statement is true or false
Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effect of new entrants into a perfectly competitive market
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one computer?
A. 1 shirt B. ¼ shirt C. ½ shirt D. 4 shirts