Tutorial -Cost of Production QA.docx

# The reason the marginal cost curve eventually

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16. The reason the marginal cost curve eventually increases asoutput increases for the typical firm is because: A) of diseconomies of scale. B) of minimum efficient scale.

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C) of the law of diminishing returns.D) normal profit exceeds economic profit. 17. If the short-run average variable costs of production for a firm arerising, then this indicates that: 18. If a more efficient technology was discovered by a firm, therewould be: 19. The firm's short-run marginal-cost curve is increasing when: 20. A firm encountering economies of scale over some range ofoutput will have a: A) rising long-run average cost curve.B) falling long-run average cost curve.
C) constant long-run average cost curve.D) rising, then falling, then rising long-run average cost curve. 21. When a firm doubles its inputs and finds that its output has morethan doubled, this is known as: 22. The larger the diameter of a natural gas pipeline, the lower is theaverage total cost of transmitting 1,000 cubic feet of gas 1,000 miles.This is an example of: 23. If all resources used in the production of a product are increasedby 20 percent and output increases by 20 percent, then there mustbe:

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• Fall '19
• Economics, Economics of production, c. Rina

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