What are the functions for MC and AC if TC = 100q + 100q2? Are the returns to scale increasing, decreasing, or constant?
What will be an ideal response?
MC = 100 + 200q
AC = 100 + 100q
Since AC increases with an increase in output, there are decreasing returns to scale.
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Which of the following markets has the most restrictive geographic boundary?
A) The market for retail gasoline B) The market for housing C) The market for gold D) The market for beef
Which of the following explains the relationship between price and the quantity supplied?
a. When expanding output, firms will incur greater total costs. b. As the price of a commodity falls, producers will find it more profitable to use higher-priced inputs in their production process. c. As a result of rising production costs, firms can increase profits by expanding output only if the price of output increases. d. To expand output, firms must hire more resources, which are always of poorer quality. e. Consumers want more at lower prices.
The production techniques available to real-world firms are constantly changing because of learning by doing and technological change.
Answer the following statement true (T) or false (F)
With a call option that is described as in the money:
A. the option has been exercised. B. the market price of the stock is below the strike price. C. the market price of the stock is above the strike price. D. the market price of the stock equals the strike price.