question
If marginal cost is equal to average total cost, then
answer
average total cost is minimized
question
Suppose that a firm's long-run average total costs of producing an individual income tax return is $75 when it produces 1,000 returns and $75 when it produces 1,200 returns. For this range of output, the firm is experiencing
answer
constant returns to scale
question
For a firm, the production function represents the relationship between
answer
quantity of inputs and quantity of output
question
Economic profit
answer
will never exceed accounting profit
question
Diminishing marginal product suggests that the marginal
answer
product of an extra worker is less than the previous worker's marginal product
question
The most likely explanation for economies of scale is
answer
specialization of labor
question
Adam Smith used a famous example of what type of firm to illustrate economies of scale?
answer
a pin factory
question
If marginal cost is rising,
answer
marginal product must be falling
question
Suppose that a firm's long-run average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing
answer
diseconomies of scale
question
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $30,000, $40,000 and $45,000. What is Jacqui's economic profit for running her own business?
answer
$5,000
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
