1. Diminishing marginal returns refers to a situation where theless than the2. If the average variable cost of producing 10 units is $18 and the average variable cost ofproducing 11 units is $20, we know that, between 10 and 11 units of output,a. marginal cost; marginal costb. average cost; average costc. marginal product; marginal productd. average product; average producte. marginal product; average productd.of the previous worker.e.a. marginal cost is increasing.b.c.d. total cost is either increasing or decreasing.c.none of the above3. A fall in the price of a good from $10.50 to $9.50 results in an increase in the quantity demandedfrom 18,800 to 21,200 units. The price elasticity of demand isBaverage total cost is increasing.average fixed cost is increasing.e.a. 0.8.b.C. 1.2.d.8.0.e. 2.4.of an additional worker is1.25.4. If Hamburger Helper is an inferior good, then, a decrease in income will lead toa. a leftward shift of the demand curve for Hamburger Helper.b. a rightward shift of the demand curve for Hamburger Helper.a movement up along the demand curve for Hamburger Helper.a movement down along the demand curve for Hamburger Helper.an initial movement up and then down along the demand curve for Hamburger Helper.5. Consider the market for cell phones. Suppose the price of a cell phone falls. Explain the effect ofthis event on the quantity of cell phones demanded and on the demand for cell phones.ECON 201-2a. The quantity of cell phones demanded is unchanged and the demand for cell phonesincreases.b. The quantity of cell phones demanded decreases and the demand for cell phones isunchanged.c. The quantity of cell phones demanded increases and the demand for cell phones isunchanged.d. The quantity of cell phones demanded increases and the demand for cell phones alsoincreases.The quantity of cell phones demanded is unchanged and the demand for cell phonesdecreases.

“Since you have posted multiple questions, we will provide the solution only to the first question…

1. Diminishing marginal returns refers to a situation where the of the previous worker. less than the a. marginal cost; marginal cost b. average cost; average cost c. marginal product; marginal product d. average product; average product e. marginal product; average product L of an additional worker is

1. Diminishing marginal returns refers to a situation where the of the previous worker. less than the a. marginal cost; marginal cost b. average cost; average cost c. marginal product; marginal product d. average product; average product e. marginal product; average product L of an additional worker is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: When the average product is increasing, marginal product: a. equals average product b. is…

A: Average product (AP) is the output produced per unit of input (labor, capital, etc.) used. It is…

Q: Exhibit 7-6 Output Rent Cost of Materials Labor $200 10 200 100 200 250 100 20 200 200 30 200 300 40…

A: Fixed costs are those costs that a company has to incur irrespective of any business activity like…

Q: When average total cost is at its minimum a.marginal cost is equal to average fixed cost. b.average…

Q: Marginal Product with 3 workers employed is A. at a maximum. B. at a minimum. C. 0. D. 20. E. Both…

A: Labor TP AP 1 13 13 2 31 15.5 3 51 17 4 67 16.75 5 79 15.8 6 86 14.3333333 7 86…

Q: putput is Cost schedule Total vari- Labor Output (units per day) Total cost (dollars) able cost…

Q: Cost schedule Labor Output (units per day) Total variable costs Total costs (workers) (dollars)…

A: Given: Cost schedule is given, where labor, output, total variable cost and total costs are…

Q: Workers Output Marginal product Total costs ATC MC 1 20 2 50 90 120 5 140 6. 150 7 155 1. Fill in…

A: Since you posted a question with multiple sub-parts, we will solve first three sub-parts for you. To…

Q: The marginal product of labor is A) output that does not meet quality specifications. B) total…

A: Marginal product refers to the addition in total product when one more unit of production is used.

Q: If marginal product is decreasing, then it must be the case that average product is greater than…

A: Marginal product refers to the additional output or production that is achieved by using one more…

Q: 16. If a firm increases both its plant and labor by the same pa the firm is experiencing A.…

A: The changes in long-run average cost with respect to output decide whether the firm is experiencing…

Q: Use the following to answer questions 3-8: Number of Workers Total Cost 1000 1 2200 2 3200 4000 4…

A: cost of production is the monetary value spent on inputs in producing output . And it is the…

Q: 1. Individual Problems 3-7 A business incurs the following costs: • Labor: $195/unit • Materials:…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: If marginal cost is less than average cost, at current levels of production, A. total cost is…

A: Marginal cost is the cost of producing and additional unit of good. Average cost is the per unit of…

Q: 2. Solve the following Workers Output Marginal product Total costs АТС MC 1 20 2 50 90 4 120 140 150…

A: Given: To Find: To fill in the column for marginal cost: Compare the column for the marginal…

Q: 121) Diminishing marginal returns: a. imply decreasing returns to scale. b. occur at all…

A: Diminishing marginal returns is a concept in economics that relates to the production process. It…

Q: firm has fixed costs, then its ________ cost exceeds its ________ cost. a.average total; average…

A: Here, Q = quantity ATC = average total cost TVC = total variable cost AVC = average total cost…

Q: QUESTION 1 Diminishing marginal returns: a. are consistent with increasing returns to scale Ob.…

A: Diminishing marginal returns is a law of economics that states that as more and more units of a…

Q: The average product is the greatest in the short run when the A) marginal product is greater than…

A: In a market, average, marginal and total product have relationship with each other as they explain…

Q: 1) Which of the following statements is/are correct i. At the maximum point of the total product…

A: Total Product is the total quantity of goods produced by a firm during a given period of time…

Q: - Fill in the blanks in the following table: Units of labor Total product Average product Marginal…

A: The thing for sale is referred to as a product.A service or an object might be considered a…

Q: Figure 14-6 $5 ATC a. $4.14 . b. $20 x C. $35 d. $29 MR Refer to Figure 14-6. What is the amount of…

A: The production of 7 units at a price of $5 per unit will yield the best profitability since the…

Q: Suppose the marginal product is maximized when the 10th worker is hired. Then the marginal cost…

A: Marginal cost:Marginal cost refers to the additional cost incurred by producing one more unit of a…

Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

1. Diminishing marginal returns refers to a situation where the
less than the
2. If the average variable cost of producing 10 units is $18 and the average variable cost of
producing 11 units is $20, we know that, between 10 and 11 units of output,
a. marginal cost; marginal cost
b. average cost; average cost
c. marginal product; marginal product
d. average product; average product
e. marginal product; average product
d.
of the previous worker.
e.
a. marginal cost is increasing.
b.
c.
d. total cost is either increasing or decreasing.
c.
none of the above
3. A fall in the price of a good from $10.50 to $9.50 results in an increase in the quantity demanded
from 18,800 to 21,200 units. The price elasticity of demand is
B
average total cost is increasing.
average fixed cost is increasing.
e.
a. 0.8.
b.
C. 1.2.
d.
8.0.
e. 2.4.
of an additional worker is
1.25.
4. If Hamburger Helper is an inferior good, then, a decrease in income will lead to
a. a leftward shift of the demand curve for Hamburger Helper.
b. a rightward shift of the demand curve for Hamburger Helper.
a movement up along the demand curve for Hamburger Helper.
a movement down along the demand curve for Hamburger Helper.
an initial movement up and then down along the demand curve for Hamburger Helper.
5. Consider the market for cell phones. Suppose the price of a cell phone falls. Explain the effect of
this event on the quantity of cell phones demanded and on the demand for cell phones.
ECON 201-2
a. The quantity of cell phones demanded is unchanged and the demand for cell phones
increases.
b. The quantity of cell phones demanded decreases and the demand for cell phones is
unchanged.
c. The quantity of cell phones demanded increases and the demand for cell phones is
unchanged.
d. The quantity of cell phones demanded increases and the demand for cell phones also
increases.
The quantity of cell phones demanded is unchanged and the demand for cell phones
decreases.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define marginal returns

VIEW

Step 2: Define diminishing marginal returns

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production Total Product O pizzas 10 20 30 40 Total Variable Cost $ 0 50 80 130 230 Total Cost $ 20 70 100 150 250 In Exhibit 7-11, the pizzeria's fixed cost is equal to: Group of answer choices $20. $20. $30. $50. $70.
2. Short Run Production Function and Total Product curve. You will need words, a chart and a graph here. Next, be sure to do the same for average and marginal product of labor. Explain what is going on in your graphs.
None
What type of cost is included in economic costs, but not included in accounting costs?a. Explicit costsb. Negative costsc. Normal profitd. Marginal coste. Unit costs
B. the rodu g one m Average Variable Cost C. fixed costs divided by output D. total cost divided by output v Marginal Cost QUESTION 5 20 points Save Answer Match each of the following terms and descriptions Constant returns to scale when the average cost of producing each individual unit A. declines as total output increases Diseconomies of scale average cost of producing each individual item increases as В. output increases economies of scale average cost of producing each individual unit remains C. constant as output increases Long Run Average Total Cost Curve the relationship between output and costs over the life of a D. business Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit ype here to search W 63°F Ca ) ENG 8:10 PM 10/18/2021 hp
When the marginal cost is lesser than the average cost the firm is producing in which Answers: A. The average cost is decreasing. B. The total cost is decreasing. C. The average cost is increasing. D. The marginal cost is decreasing.
If marginal cost is less than average total cost, a. average variable cost must be decreasing. b. marginal cost must be decreasing.O c. average total cost is decreasing. d. average total cost is increasing.