Question: If ceteris paribus, a firm's production costs decrease, what should happen to its quantity produced? It will decrease along with total benefit. It will decrease.
If ceteris paribus, a firm's production costs decrease, what should happen to its quantity produced?
| It will decrease along with total benefit. | |
| It will decrease. | |
| It will increase. | |
| It will be unaffected. | |
| Insufficient data to determine |
What role do fixed costs play in marginal analysis?
| They are averaged into the marginal cost. | |
| Their value is the level that marginal costs should equal. | |
| The sum of all marginal costs equals the fixed costs. | |
| They are ignored and have no bearing on marginal cost. | |
| They determine the marginal benefit a consumer or producer is referencing. |
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