Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the MC curve
A) has a positive slope.
B) shows the effect of increasing marginal returns.
C) Both answers A and B are correct.
D) Neither answer A nor B is correct.
A
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A cost that involves spending money is
A) an explicit cost. B) an implicit cost. C) an opportunity cost. D) an indirect cost.
In national income accounting, the value of worn out or obsolete capital is represented by
A) depreciation. B) transfer payments. C) disposable income. D) dividends.
The most significant expansion of Medicaid since its inception occurred in 1997 and is referred to as
a. SCHIP. b. SHIP. c. TANF. d. AFDC.
The cost of using capital is equal to the market rental price as long as:
A. a firm rents all of the capital used in its production process. B. a firm owns all of the capital used in its production process. C. the cost of capital is expensed in the year the capital is purchased. D. a well-functioning rental market for capital exists.