The figure above shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What quantity does the firm produce?
A) 200 calculators per day
B) 300 calculators per day
C) more than 300 calculators per day and less than 400 calculators per day
D) 400 calculators per day
B
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If marginal cost is greater than average total cost, then
a. profits are increasing. b. economies of scale are becoming greater. c. average total cost remains constant. d. average total cost is increasing.
Which of the following is a predicted result of the increased use of additive manufacturing (using 3-D printers)?
A. Economies of scale in manufacturing will be eliminated, driving up production costs and prices. B. Lower prices of manufactured goods through the elimination of large fixed costs and transportation costs. C. Monopolization of manufactured goods industries, as few individuals can afford additive manufacturing technology. D. Significant increases in the fixed costs of producing manufactured goods.
In the short run when the marginal product of labor ________, the marginal cost of an additional unit of output ________.
A. falls; rises B. falls; falls C. rises; rises D. rises; doesn't change
An amusement park is an example of a pure private good
Indicate whether the statement is true or false