Which of the following is true about the long-run average cost curve?
At its current short-run level of production, a firm's average variable costs equal $30.00 per unit and its average fixed costs equal $25.00 per unit. Its total costs at this production level equal $3,500.
The wage rate divided by marginal product equals
The short run is defined as
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|
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Total Input
|
Total
Product
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|
(Labor)
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(Televisions)
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1
|
12
|
|
2
|
25
|
|
3
|
39
|
|
4
|
50
|
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5
|
60
|
|
6
|
58
|
|
7
|
54
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|
8
|
48
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| |
|
In the table above, diminishing returns begins with the addition of worker number.
In the table above, the marginal physical product becomes negative when the ___worker is added
Using the 3-point curved line drawing tool, draw a possible long-run average cost curve for a firm that always experiences diseconomies of scale no matter what plant size it selects. Label this curve ‘ATC'.
The law of diminishing marginal returns shows the relationship between
The shape of the short-run cost curves are the result of
If a firm hires an additional worker and discovers that its total physical output has fallen, then it must be true that
In economics, the planning horizon is defined as
Economies of scale in production
Which of the graphs represents the correct relationship among the cost curves?
In the long run there
Consider the long-run average cost curve to the right.
The firm's minimum efficient scale occurs