Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Mega Corp: TC = 5,000 + 100Q Big Inc: TC = 4,000 + 200Q When each firm produces 8 units, ________ has a lower total cost, and when each firm produces 12 units, ________ has a lower total cost.
A. Mega Corp; Mega Corp
B. Big Inc; Mega Corp
C. Big Inc; Big Inc
D. Mega Corp; Big Inc
Answer: B
You might also like to view...
If a firm finds that, at its current level of employment, VMP < W, then it has
A) reached maximum profits. B) reached minimum profits. C) not hired enough labor to maximize its profit. D) hired too much labor to maximize its profit.
The change in total output when one more unit of a resource is employed is called
a. total revenue b. marginal revenue product c. marginal physical product d. quantity supplied e. wage rate
Factors of production are
a. the mathematical calculations firms make in determining their optimal production levels. b. social and political conditions that affect production. c. the physical relationships between economic inputs and outputs. d. inputs into the production process.
Which of the following changes in the price index produces the greatest rate of inflation: 106 to 112, 112 to 118, or 118 to 124?
a. 106 to 112 b. 112 to 120 c. 118 to 126 d. All of these changes produce the same rate of inflation.