Question A3 FC VC Bob runs a book-binding business, and the production of bound books requires two inputs: the binding machine and labour. The production function exhibits diminishing returns, to labour. Which of the following statement is incorrect in the short run? The production function is concave in the labour input. (b) Average total cost is increasing in output. (c) Short-run total cost is convex in output. (d) Variable cost is convex in output. Incres y o

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 2CQQ
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FC
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Question A3
Bob runs a book-binding business, and the production of bound books requires two inputs:
the binding machine and labour. The production function exhibits diminishing returns, to
labour. Which of the following statement is incorrect in the short run?
The production function is concave in the labour input.
(b) Average total cost is increasing in output.
(c) Short-run total cost is convex in output.
(d) Variable cost is convex in output.
Increx y ос
Transcribed Image Text:FC VC Question A3 Bob runs a book-binding business, and the production of bound books requires two inputs: the binding machine and labour. The production function exhibits diminishing returns, to labour. Which of the following statement is incorrect in the short run? The production function is concave in the labour input. (b) Average total cost is increasing in output. (c) Short-run total cost is convex in output. (d) Variable cost is convex in output. Increx y ос
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