Given the graph shown here the firm should

  • No School
  • AA 1
  • AgentAntelope0316
  • 11
  • 92% (64) 59 out of 64 people found this document helpful

This preview shows page 3 - 6 out of 11 pages.

Given the graph shown here, the firm should contemplate shuttingdown production at which of the following points?At Q1At Q2When MC (the purple line) reaches its lowest point
When MC (the purple line) is greater than Q1CONCEPTShut-down Point7Which of the following is true regarding how a market type interactswith constant, increasing and decreasing cost industries?
In a monopoly, firms are likely to begin experiencing diseconomies of scaleat relatively low levels of output.In a perfectly competitive market, firms will usually experience significanteconomies of scale until very high levels of output.In a perfectly competitive market, firms tend to experience diseconomies ofscale at relatively low levels of output.CONCEPTConstant, Increasing and Decreasing Cost Industries8A variable input is one that __________.will change as a result of changes in productionwill always have increasing costsis highly expensive to change in the long runwill not change over the scope of productionCONCEPTProduction Function and Constraints9
When a firm uses five machines, it can produce 600 units daily. A sixthmachine allows the firm to product 880 units.Which of the following is true regarding production?

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 11 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
NoProfessor
Tags

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture