(1) Use the graph to answer the question.
The graph illustrates that
A-the firm's fixed costs are increasing. B-the firm is producing fewer units at every cost level
C-the firm is failing to employ division of labor. D-the firm's variable and total costs are decreasing
E-the firm is experiencing increasing marginal returns
(2)A firm has fixed costs of $100 at 10 units. If its variable costs at 15 units are $100, what must its total cost be to produce 15 units?
A- $100. B-$200. C-$250. D-$1,500. E-$2,500
(3) Use the graph to answer the question.
Between points C and D, the long-run
A-constant returns; constant. B-economies of scale; increasing. C-economies of scale; constant
D-diseconomies of scale; increasing. E-diseconomies of scale; decreasing
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