Production, Cost, and the Perfect Competition Model
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 factors is most likely to cause diseconomies of scale?
A firm has fixed costs of 1000 when producing 100 units of output. What is the average total cost (ATC)?
Which of the following statements accurately describes the relationship between Marginal Cost (MC) and Average Total Cost (ATC)?
A firm has total revenues of 300,000, and implicit costs of $100,000. What is the firm's economic profit?
Which of the following describes a situation where a firm doubles its inputs and its output also doubles?
Which of the following costs do NOT vary with the quantity of output produced in the short run?
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What happens to the Long-Run Average Total Cost (LRATC) curve when a firm experiences economies of scale?
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?