If a firm has increasing returns to scale at all levels of output, then the
A. marginal cost for the firm declines over the entire range of output.
B. average cost for the firm declines over the entire range of output.
C. fixed costs of operation diminish to zero.
D. production technology is optimized.
Answer: B
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The demand for computers has risen dramatically at the same time that the unit cost of production has decreased. As a result, we can expect
A. a decrease in price and no predictable impact on output. B. a definite decrease in price and increase in output. C. an increase in output with no predictable change in price. D. no predictable changes in either price or output.
Refer to Scenario 2. What are the units of measurement for the standard error of the estimate?
What will be an ideal response?
The optimal output of a collective consumption good is found by_____
a. equaling marginal cost and the vertical summation of all individual's demand curves b. equaling price and marginal cost c. equaling marginal cost and the horizontal summation of all individual's demand curves d. equaling marginal cost and long-run average total cost
Suppose 100 citizens each derive marginal benefit from submarines according to the function MB = 10 - Q. If subs cost $100 each to produce, what is the efficient quantity of submarines?
What will be an ideal response?