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8) Refer to the graph shown. The least-cost method of producing 1,000 units of output is shown at point:

8) Refer to the graph shown. The least-cost method of producing 1,000 units of output is shown at point:

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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8) Refer to the graph shown. The least-cost method of producing 1,000 units of output is shown at point: 8) Units of Capital 12 7.2 2.4 1 B A (Q = 1000) 1 2 3 4 Number of workers B) B. C) C. 10) Economies of scale are associated with: A) the short run. C) diminishing marginal productivity. 5 A) A. D) D. 9) 9) At one time, sea lions were depleting the stock of steelhead trout. One idea to scare sea lions away from the Washington coast was to launch fake killer whales, which are predators of sea lions. The cost of making the first whale is $16,000 ($5,000 for materials and $11,000 for the mold). The mold can be reused to make additional whales, and so additional whales cost $5,000 each. Based on these numbers, the production of fake killer whales exhibits: A) diminishing marginal product. C) constant returns to scale. B) increasing returns to scale. D) decreasing returns to scale. B) zero setup costs. D) indivisible setup costs. 10)
Transcribed Image Text:8) Refer to the graph shown. The least-cost method of producing 1,000 units of output is shown at point: 8) Units of Capital 12 7.2 2.4 1 B A (Q = 1000) 1 2 3 4 Number of workers B) B. C) C. 10) Economies of scale are associated with: A) the short run. C) diminishing marginal productivity. 5 A) A. D) D. 9) 9) At one time, sea lions were depleting the stock of steelhead trout. One idea to scare sea lions away from the Washington coast was to launch fake killer whales, which are predators of sea lions. The cost of making the first whale is $16,000 ($5,000 for materials and $11,000 for the mold). The mold can be reused to make additional whales, and so additional whales cost $5,000 each. Based on these numbers, the production of fake killer whales exhibits: A) diminishing marginal product. C) constant returns to scale. B) increasing returns to scale. D) decreasing returns to scale. B) zero setup costs. D) indivisible setup costs. 10)
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