A monopoly's output decision depends only on the shape of its marginal cost curve
Indicate whether the statement is true or false
False. The output decision depends on the shape of its marginal costs curve and demand curve.
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Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number ofCakes Per DayTotal CostPer Day0$1001$1802$2203$3004$4005$5206$660If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ________ cakes per day.
A. 6 B. 3 C. 5 D. 0
A cost not borne by the producer but borne by other people is known as ________ cost
A) a marginal B) an internal C) an external D) a nonessential E) a subsidized
What three things must a firm know in order to calculate costs?
What will be an ideal response?
Refer to Figure 6.2. The situation pictured is one of
A) constant returns to scale, because the line through the origin is linear. B) decreasing returns to scale, because the isoquants are convex. C) decreasing returns to scale, because doubling inputs results in less than double the amount of output. D) increasing returns to scale, because the isoquants are convex. E) increasing returns to scale, because doubling inputs results in more than double the amount of output.