-nUse the information in the table to address this question. The firm's marginal costs are?Number of Workers Total OutputMarginal Product0011,000ts21,70032,20042,40052,500The answer to this question cannot be determined by the information provided in the table.ConstantDecreasingIncreasing

To find out what the firm's marginal costs are, we need to look at its marginal product, which is…

Answered: -n Use the information in the table to…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 32CTQ: How does fixed cost affect marginal cost? Why is this relationship important?

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Similar questions

What is die difference between accounting and economic profit?
What are explicit and implicit costs?
Why does entry occur?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
In choosing a production technology, how will firms react if one input becomes relatively more expensive?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Are fixed costs also sunk costs? Explain.
What are diminishing marginal returns as they relate to costs?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
Why does exit occur?

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