Question

Question 41 Output 0 2. Total Cost S5 $10 $12 $15 $24 $40 3 4 5 If the market price is $9, this firm will a. produce 4 units of output in the short run and in the long run since the market will be in a long-run equilibrium b. produce 4 units of output in the short run and exit in the long run None of these d. produce 5 units of output in the short run and face competition from new entrants in the long run produce 4 units of output in the short run and face competition from new entrants in the long run Oe. Question 42 Number of Workers Output 10 Fixed Cost $30 $30 $30 $30 $30 $30 0 100 180 240 1280 300 Variable Cost $0 $15 $30 $45 $60 $75 2 В From the table above, note that the amount of output is increasing. Obviously, as the firm increases the number of workers, output will increase. However, notice that the amount that it increases by decreases. For instance, to go from 1 worker to 2 workers increases output by 80 units. But, if the firm goes from 4 workers to 5 workers, that increase is just 20 units. What do we call this phenomenon? a. Decreasing marginal cost None of these Ob. O Poor use of labor by the firm d. Decrease in demand for the product the firm sells e Decreasing marginal product

Answer 1

Ans) the correct option is e) produce 4 units of output in the short run and face competition from new entrants in the long run.

Ans) the correct option is e) decreasing marginal product