Homework Help is Here – Start Your Trial Now!
Business
Economics
QUESTION 17 If a company increases production from 1000 to 2000 units and total cost increase from 10000 to 15000 dirhams. How much is the marginal cost? O a. 5000 dirhams. O b. 1000 dirhams. O c. 5 dirhams. O d. 100 dirhams.

QUESTION 17 If a company increases production from 1000 to 2000 units and total cost increase from 10000 to 15000 dirhams. How much is the marginal cost? O a. 5000 dirhams. O b. 1000 dirhams. O c. 5 dirhams. O d. 100 dirhams.

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
See similar textbooks
icon
Related questions
Question

Q17,18

QUESTION 16 Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when 5 units of output are produced, the total cost is 175 dirhams, and the average variable cost is 30 dirhams. What would the average fixed cost be if 10 units were produced? a. 4 dirhams. O b.2.5 dirhams. O c. 10 dirhams. O d. 135 dirhams. QUESTION 17 If a company increases production from 1000 to 2000 units and total cost increase from 10000 to 15000 dirhams. How much is the marginal cost? O a. 5000 dirhams. Ob. 1000 dirhams. O c. 5 dirhams. O d. 100 dirhams. QUESTION 18 In a duopoly, if the firms have agreed to jointly maximize profits, then each firm can increase its current profits by producing more. O True O False
Transcribed Image Text:QUESTION 16 Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when 5 units of output are produced, the total cost is 175 dirhams, and the average variable cost is 30 dirhams. What would the average fixed cost be if 10 units were produced? a. 4 dirhams. O b.2.5 dirhams. O c. 10 dirhams. O d. 135 dirhams. QUESTION 17 If a company increases production from 1000 to 2000 units and total cost increase from 10000 to 15000 dirhams. How much is the marginal cost? O a. 5000 dirhams. Ob. 1000 dirhams. O c. 5 dirhams. O d. 100 dirhams. QUESTION 18 In a duopoly, if the firms have agreed to jointly maximize profits, then each firm can increase its current profits by producing more. O True O False
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Comparative Advantage
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
SEE MORE TEXTBOOKS