Question

Whats Apping 11) Tale wat we Dis w aivelemes 2) Which we stalways in Aless nests when vethet tal variables 43) Afirm's shorter totalco (TO) is equal to A) varicost a le o total cost divided by variables ) D) e cost w as variable cost elost phas variable cost 4) The law of diminishing returns applies in A) the long run only the short run only 1) the short run and the long run. D) neither the short run the long run 15) The period of time when a firm is able to change all of its inputs or factors of production is called 45) A) short run Clong run. B) economie term D) accounting term 46) One of the main differences between the long run and the short run is that A) the firm can eam a profit. B) there are no diminishing returns in the long run. there are no diminishing returns in the short run. D) the firm can operate at a loss 47) If a firm is operating in the long run, the firm has flexibility in A) altering all inputs. B) modifying an existing facility. C) building a new production facility. D) all of the above 48) 48) Which of the following describes a long-run adjustment of a firm to changing business conditions? A) A farmer hires more workers to help bring in the harvest. B) A restaurant owner leases an empty store next door and expands. C) A dentist changes her hours to see more patients. D) all of the above 49) If a car manufacturer enjoys economies of scale, then an increase in the number of cars manufactured will lead to an) A) decrease in average cost. B) decrease in total cost. increase in average cost. D) constant average cost,

Answer 1

in the short run the law of diminishing returrs state that, We of a variable input to fixed add more unit amounts of in total fall land and capital output will at first rin the and change then option c is correct (45) long run varies over in which time both types of con option c is carrers a CC 4 option ② is correct option 6 is correct option ② is correce option ② is correct.

Total variable cost increases with increase in output because TVC = vcxQ .. VCT Variable cost per unic Option ® is correct I in increase Total variable cost increases with output and vice versa .: option ® is correct short-run Total cost = Fixed cott variable cast .. option is correct