This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 1. Economies and diseconomies of scale explain: why the firm's long-run average total cost curve is U-shaped. 2. If marginal cost is: rising, then average total cost could be either falling or rising. 3. If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that: economies of scale are being realized. 4. When total product is increasing at a decreasing rate, marginal product is: positive and decreasing 5. If you operated a small bakery, which of the following would be a variable cost in the short run? Baking supplies (flour, salt, etc.) 6. In the short run, which of the following statements is correct? Total cost will exceed variable cost 7. If average total cost is declining, then: marginal cost must be less than average total cost. 8. When average fixed costs are falling: average variable cost may be either rising or falling. 9. If a profitable firm's fixed costs somehow was zero: AVC and ATC would coincide. 10. In comparing the changes in TVC and TC associated with an additional unit of output, we find that: the changes in TC and TVC are equal. 11. If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that: both relatively small and relatively large firms can be viable in the industry....
View Full Document