A19. When all of a firm's inputs are doubled, input prices do not change, and this results
Question:
A19. When all of a firm's inputs are doubled, input prices do not change, and this results in the firm's level of production more than doubling, a firm is operating:
-
(A) on the upward-sloping portion of its long-run average total cost curve.
-
(B) on the downward-sloping portion of its long-run average total cost curve.
-
(C) at the minimum of its long-run average total cost curve.
-
(D) on the upward-sloping portion of its marginal cost curve.
-
(E) on the stretch of the horizontal segment of its marginal cost curve. Answer:B
A22. For a firm producing at any level of output LOWER than the most profitable one, an increase in output adds:
-
(A) more to total cost than to total revenue.
-
(B) more to total revenue than to total cost.
-
(C) the same amount to total revenue as to total cost.
-
(D) to total revenue but not to total cost.
-
(E) to total cost but not to total revenue. Answer: B Hope to receive a detailed explanation, thank you!
Auditing A Practical Approach
ISBN: 9780730382645
4th Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton