In the short run, the firm's product curves show Select one: a when the MP curve...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In the short run, the firm's product curves show Select one: a when the MP curve cuts the AP curve from below, the AP curve begins to fall. b. when MP> AP, AP is decreasing. c. TP is at its maximum when MP = 0. d. AP is at its minimum when MP = AP e. TP begins to decrease when AP begins to decrease. Total Fixed Total Variable Total Cost Cost Cost 200 200 400 10 200 220 420 15 200 240 440 20 200 260 460 25 200 350 550 30 200 810 1010 The table above provides information on output per month and short-run costs for a firm producing outdoor wooden lounge chairs. All costs are in dollars. This firm would minimize the average variable cost of production when producing Select one a. 30 chairs. D. 20 chairs c. 15 chairs d. 25 chairs. e. 10 chairs Suppose egg producers succeed in permanently raising the price of their product by 15 percent, and as a result the quantity demanded falls by 15 percent in the short run. In the long run we can expect the quantity demanded to fall by Select one: a. more than 15%. b. 0%: c. between 0 and 15%. d. 15% e. 100%. Suppose that when a firm hires one additional unit of labour, total product increases from 100 to 110 units of output per month. Marginal product must therefore be Select one a positive. b increasing. C zero, d. decreasing e.constant In the short run, the firm's product curves show Select one: a when the MP curve cuts the AP curve from below, the AP curve begins to fall. b. when MP> AP, AP is decreasing. c. TP is at its maximum when MP = 0. d. AP is at its minimum when MP = AP e. TP begins to decrease when AP begins to decrease. Total Fixed Total Variable Total Cost Cost Cost 200 200 400 10 200 220 420 15 200 240 440 20 200 260 460 25 200 350 550 30 200 810 1010 The table above provides information on output per month and short-run costs for a firm producing outdoor wooden lounge chairs. All costs are in dollars. This firm would minimize the average variable cost of production when producing Select one a. 30 chairs. D. 20 chairs c. 15 chairs d. 25 chairs. e. 10 chairs Suppose egg producers succeed in permanently raising the price of their product by 15 percent, and as a result the quantity demanded falls by 15 percent in the short run. In the long run we can expect the quantity demanded to fall by Select one: a. more than 15%. b. 0%: c. between 0 and 15%. d. 15% e. 100%. Suppose that when a firm hires one additional unit of labour, total product increases from 100 to 110 units of output per month. Marginal product must therefore be Select one a positive. b increasing. C zero, d. decreasing e.constant
Expert Answer:
Answer rating: 100% (QA)
51 Option a is correct Explanation At the initial stage when TP curv... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
In the short run of a model with sticky prices, a reduction in the money supply raises the nominal interest rate and appreciates the currency (Chapter 15). What happens to the expected real interest...
-
In the short run the price elasticity of the demand and supply of electricity can be very low. a. How might revenue for the electricity industry change if one power plant were shut down for...
-
Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers...
-
Transform the following product by making the change of variable i = k + 1. k So when k and K +2 When k = 1, then i = n k II k +2 k = 1 = n+ 1 II i = 2 are expressed in terms of i, the results are k...
-
What are the conditions that enhance the likelihood of a cooperative outcome in a repeated prisoners' dilemma game?
-
Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for their child's college education. They decide to make deposits into an...
-
Chemical Boost, Inc. isa manufacturer of TA5 chemical and derivative products. Presented below is select information from Chemical Boosts recent annual cas soy report. The footnotes to the companys...
-
Briefly describe FASB/IASB convergence process and the principles that guide their convergence efforts.
-
Lower-of-Cost-or-Market Method On the basis of the data shown below: Item JFW1 SAW9 Inventory Quantity 5,750 Cost per Unit $9 Market Value per Unit (Net Realizable Value) 27 $10 1,040 Determine the...
-
Shell Company, an 85% owned subsidiary of Plaster Company, sells merchandise to Plaster Company at a markup of 20% of selling price. During 2024 and 2025, intercompany sales amounted to $442,500 and...
-
Chris is the owner of an online retail start-up business. His company creates and sells specialized T-shirts, water bottles, and bumper stickers. He started his business out of his garage, and one...
-
Must be in context to labor and employee relation and not in general Five Key Cases [Wm. Scott, Steel Equip., Renaud, Meiorin, Fraser Lakes] that LR pros refer to (noting what they are used for...
-
Financial health, from an organizational standpoint, refers to the overall state of a company's financial well-being and its ability to effectively manage its financial resources to meet its...
-
Use the following information to create a budget for the Constantine family. The Constantine family recently had a budget deficit, something that they want to avoid because they understand that it...
-
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Age of Accounts...
-
Little Timmy has fallen down the well! To get him out, rescue workers lower a rope attached to a machine and Timmy ties it around his waist. The machine reels in the rope at a slow steady rate. Timmy...
-
1. Using the "Pets per Household" probability distribution above, find the mean number of pets per household in the U.S. Round your answer to the nearest hundredths place.U= 2.Using the "Pets per...
-
5. How much would you need to deposit in an account now in order to have $5,000 in the account in 5 years? Assume the account earns 2% interest compounded monthly. 10. You deposit $300 each month...
-
Examine the following marginal costs and marginal benefits associated with water cleanliness in a given locale: a. What is the optimal degree of water cleanliness? b. What is the optimal degree of...
-
The campus pizzeria sells a single pizza for $12. If you order a second pizza, however, the pizzeria charges a price of only $5 for the additional pizza. Explain how an understanding of marginal...
-
A government agency is contemplating launching an effort to expand the scope of its activities. One rationale for doing so is that another government agency might make the same effort and, if...
-
On January 1, 2015, Drummond Oil and Gas Company was about to embark on a 50-well exploration program in Texas and Louisiana. The CEO estimated that the average cost to drill a well would run...
-
Equipment costing \($29,000\), with a scrap value of \($5,000\) was purchased on January 1, by Global Communications, Inc. The estimated useful life of the equipment was four years and it was...
-
Dean Foods Company, a food and beverage company headquartered in Dallas, Texas, is one of the nations largest processors and direct-to-store distributors of fluid milk. Consistent with U.S. GAAP,...
Study smarter with the SolutionInn App