The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of:
A diminishing marginal revenues
B diseconomies of scale
C increasing marginal productivity of variable inputs.
D diminishing marginal returns
E. rising fixed costs
rising fixed costs
OPTION C IS CORRECT
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of a. diseconomies of scale. b. diminishing marginal revenues. c. rising fixed costs. d. increasing marginal productivity of variable inputs. e. diminishing marginal returns. . If the long-run average cost of production falls as the firm increases its level of output, then the firm exhibits a. constant returns to scale. b. constant marginal costs. c. economies of scale. d. diseconomies of scale. e. diminishing...
Which of the following statements about the law of diminishing returns are Correct? The law of diminishing returns says that a firm’s marginal cost curve will eventually slope upwardly as it produce more and more output. The existence of fixed inputs ensures that the law of diminishing returns will eventually set in as more variable inputs are added to the production. The law of diminishing returns ensures that diseconomies of scale will eventually set in as more inputs are added...
Which of the following statements is (are) correct? (x) The average variable cost curve declines as quantity increases because variable costs always decrease as output increases. (y) The average variable cost curve and average total cost curve will eventually intersect as output increases because average fixed cost eventually becomes negative. (z) The marginal cost curve crosses the average total cost curve at the efficient scale, which occurs at the minimum point on the average total cost curve. A. (x), (y)...
Which of the following statements about the law of diminishing returns are Correct? pick one The law of diminishing returns says that a firm’s marginal cost curve will eventually slope upwardly as it produce more and more output. The existence of fixed inputs ensures that the law of diminishing returns will eventually set in as more variable inputs are added to the production. The law of diminishing returns ensures that diseconomies of scale will eventually set in as more inputs...
The average variable cost curve slopes upward with a higher rate of output in the short run because of A. The effect of diminishing returns. B. The shape of the average fixed cost curve. C. Diseconomies of scale. D. Implicit but not explicit costs.
Is it true that in a short-run production process, the marginal cost curve eventually slopes upward because firms have to pay workers a higher wage rate as they produce more output? Explain your answer.
QUESTION 1 In the short run, the ATC curve is _____ above the AVC curve. A. always B. sometimes C. never 2 points QUESTION 2 As output rises, A. AFC rises. B. AFC falls. C. AFC remains the same. D. there is no way of determining what happens to AFC. 2 points QUESTION 3 When average total cost is declining, then A. marginal cost must be less than average total cost. B. marginal cost must be greater than...
QUESTION 30 A downward-sloping portion of a long-run average total cost curve is the result of: economies of scale. diseconomies of scale. diminishing returns. the existence of fixed resources. 2.5 points QUESTION 31 In the long run, firms in many industries often experience a falling average total cost curve as a result of: gains through trade. increasing marginal returns. economies of scale. lower fixed costs. 2.5 points QUESTION 32 A large aircraft manufacturer, like Boeing, may have a...
Marginal cost Group of answer choices A. Falls in the short run because some resources are fixed. B. Falls whenever marginal physical product decreases. C. Rises whenever marginal revenue product rises. D. Rises as a direct result of diminishing returns.
The upward sloping portion of a short-run total cost curve illustrates: a. Diseconomies to scale b. Neither of the above c. Diminishing marginal returns