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2. You have collected the following data on output and total variable costs: Q TVC S 10 60 107 145 178 213 253 304 370 455 566 This question was...

This question was created from Assignment 4-FA17 AP2.docx https://www.coursehero.com/file/26547905/Assignment-4-FA17-AP2docx/

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Over what range of output does this firm exhibit increasing returns (increasing MP), and diminishing returns (decreasing MP)? Select one: a. Increasing returns for output levels at 6 and higher, and decreasing returns for output levels at 5 and lower. b. Increasing returns for output levels at 4 and lower, and decreasing returns for output levels at 5 and higher. c. Marginal costs are less than fixed costs up to Q = 8, so increasing returns is experienced until Q = 8 and then decreasing returns from Q = 9 and higher. d. Increasing returns for output levels at 6 and lower, and decreasing returns for output levels at 7 and higher.

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Top Answer

Q TVC ($) MC 1 60 60 2 107 47 3 145 38 4 178 33 5 213 35 6 253 40 7 304 51 8 370 66 9 455 85 10 566 111... View the full answer

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Other Answers

As we know total cost is the sum of total fixed cost and total variable cost and if in a case total fixed cost is equal to 0... View the full answer

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b. Increasing returns for output levels at... View the full answer

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