Production, Cost, and the Perfect Competition Model
What is the additional output resulting from employing one more unit of labor, while holding other inputs constant?
A firm increases its labor input from 10 to 11 workers, while holding capital constant. As a result, its output increases from 100 to 108 units. What is the marginal product of the 11th worker?
A company initially produces 50 widgets using 5 workers. They then hire additional workers. The table below shows total widgets produced with each additional worker. At what number of workers does this firm experience diminishing marginal returns?
| Workers | Total Widgets Produced | |---------|-----------------------...
Which of the following describes a situation where a firm doubles its inputs and its output also doubles?
A firm increases all of its inputs by 20%, and its output increases by 10%. What type of returns to scale is the firm experiencing?
Which of the following costs do NOT vary with the quantity of output produced in the short run?
A firm has fixed costs of 500 and variable costs of 1000 when producing 100 units of output. What is the average total cost (ATC)?
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Which of the following statements accurately describes the relationship between Marginal Cost (MC) and Average Total Cost (ATC)?
What happens to the Long-Run Average Total Cost (LRATC) curve when a firm experiences economies of scale?
Which of the following factors is most likely to cause diseconomies of scale?