Refer to the figure at right. The shift in the marginal cost curve implies O A. a decrease in the price of an input, which increases the profit-maximizing level of output. O B. an increase in the price of an input, which reduces the profit-maximizing level of output. O C. a decrease in the price of an input, which shifts the marginal cost curve upward. O D. a deadweight loss when costs increase and output remains the same. Price, cost p (dollars per unit) 92 MC: MC₂ 1 Output

Refer to the figure at right. The shift in the marginal cost curve implies O A. a decrease in the price of an input, which increases the profit-maximizing level of output. O B. an increase in the price of an input, which reduces the profit-maximizing level of output. O C. a decrease in the price of an input, which shifts the marginal cost curve upward. O D. a deadweight loss when costs increase and output remains the same. Price, cost p (dollars per unit) 92 MC: MC₂ 1 Output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1
Suppose a perfectly competitive firm's produces 80 units at a minimum average variable cost of $2.5. If the price is $3 and the firm's marginal cost is $3, the firm should? Select one: O a continue to produce 80 O b. continue to operate, but produce more than 80 O c. shut down O d. continue to produce, but produce less than 80
# 6
The short run is defined as the period of time: Select one: O a. in which all inputs are fixed O b. in which at least one input is fixed O c. O d. none of the answers provided is correct in which no inputs are fixed
(Figure: Revenues, Costs, and Profits for Avocado Producers III) Use Figure: Revenues, Costs, and Profits for Avocado Producers III. The market for avocados is perfectly competitive. If the market price of a bushel of avocados is $18, in the short run, the farmer's profit-maximizing output is bushels. Price per bushel $30 26 22 18 14 10 6 2 0 Itranscript O 5 O 3 04 02 MC • 1 2 3 4 5 6 7 Quantity of avocados (bushels) ATC AVC
You are an employer seeking to fill a vacant position on an assembly line. Are you more concemed with the average product of labor or the marginal product of labor for the last person hired? O A. The marginal product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns. O B. The average product of labor because productivity is maximized when average product is maximized This determines the output where revenue and profit are maximized. O C. The average product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns O D. The marginal product because it measures the effect the last person hired has on output, or total product. This helps determine the revenue generated by hiring an another worker, which can be compared with the cost of hiring an another worker