Asa factory increases its output,the
average total cost of producing the product goes down. It illustrates
the law of diminishing returns. ( )
average total cost of producing the product goes down. It illustrates
the law of diminishing returns. ( )
举一反三
- A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its ____ A: marginal revenue B: average total cost C: average variable cost. D: average fixed cost.
- Average variable cost and average total costs get closer together as output increases because:
- In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40 units. Firm A exhibits_________. A: constant returns to scale because average total cost is constant as output rises B: diseconomies of scale because total cost is rising as output rises C: economies of scale because average total cost is falling as output rises D: diseconomies of scale because average total cost is rising as output rises
- If average variable cost decreases as output increases, then:
- The traditional view of the production process is that capital is subject to A: Constant returns. B: Increasing returns. C: Diminishing returns. D: Diminishing returns for low levels of capital, and increasing returns for high levels of capital.