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Questions and Answers
What is the relationship between average fixed cost and the quantity of output?
What is the relationship between average fixed cost and the quantity of output?
- Average fixed cost remains constant regardless of the quantity of output
- Average fixed cost increases as the quantity of output increases (correct)
- Average fixed cost is unrelated to the quantity of output
- Average fixed cost decreases as the quantity of output increases
What characterizes a situation of diseconomies of scale?
What characterizes a situation of diseconomies of scale?
- Long-run average total cost rises as the quantity of output increases (correct)
- Variable costs decrease with an increase in output
- Long-run average total cost stays the same as the quantity of output changes
- Long-run average total cost falls as the quantity of output increases
What is the main property of constant returns to scale?
What is the main property of constant returns to scale?
- Long-run average total cost stays the same as the quantity of output changes (correct)
- Long-run average total cost rises as the quantity of output increases
- Long-run average total cost is fixed regardless of the quantity of output
- Long-run average total cost falls as the quantity of output increases
What does the marginal cost represent?
What does the marginal cost represent?
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How does economies of scale relate to long-run average total cost?
How does economies of scale relate to long-run average total cost?
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What is the formula for profit for a firm?
What is the formula for profit for a firm?
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Which of the following best defines Implicit Costs?
Which of the following best defines Implicit Costs?
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What is Marginal Product in economics?
What is Marginal Product in economics?
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In economics, what do Fixed Costs refer to?
In economics, what do Fixed Costs refer to?
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What is Average Total Cost in economics?
What is Average Total Cost in economics?
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