Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 21, Problem 15QP
To determine
Explain why the firm produce its goods even after diminishing returns to scale.
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explain why a firm might want to produce its good even after diminishing marginal returns have set in and marginal cost is rising ?
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Chapter 21 Solutions
Economics (MindTap Course List)
Ch. 21.2 - Prob. 1STCh. 21.2 - Prob. 2STCh. 21.2 - Prob. 3STCh. 21.2 - Prob. 4STCh. 21.3 - Prob. 1STCh. 21.3 - Prob. 2STCh. 21.3 - Prob. 3STCh. 21.4 - Prob. 1STCh. 21.4 - Prob. 2STCh. 21.4 - Prob. 3ST
Ch. 21.4 - Prob. 4STCh. 21.5 - Prob. 1STCh. 21.5 - Prob. 2STCh. 21.5 - Prob. 3STCh. 21 - Prob. 1QPCh. 21 - Prob. 2QPCh. 21 - Prob. 3QPCh. 21 - Prob. 4QPCh. 21 - Prob. 5QPCh. 21 - Prob. 6QPCh. 21 - Prob. 7QPCh. 21 - Prob. 8QPCh. 21 - Prob. 9QPCh. 21 - Prob. 10QPCh. 21 - Prob. 11QPCh. 21 - Prob. 12QPCh. 21 - Prob. 13QPCh. 21 - Prob. 14QPCh. 21 - Prob. 15QPCh. 21 - Prob. 16QPCh. 21 - Prob. 17QPCh. 21 - Prob. 18QPCh. 21 - Prob. 19QPCh. 21 - Prob. 1WNGCh. 21 - Prob. 2WNGCh. 21 - Prob. 3WNGCh. 21 - Prob. 4WNGCh. 21 - Prob. 5WNGCh. 21 - Prob. 6WNGCh. 21 - Prob. 7WNGCh. 21 - Prob. 8WNGCh. 21 - Prob. 9WNG
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- Explain Marginal cost (MC)?arrow_forwardwhy is average product low for a goodarrow_forwardUse the information in the graph to the right to find the values for the following at an output level of 45. 100- The marginal cost is $ 18 . (Round your response to the nearest dollar.) MC The total cost is $ (Round your response to the nearest dollar.) АТС AVC 43 30 18 45 Quantity of output .... Costarrow_forward
- We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. Why?arrow_forwardHi, I am studying chapter 11 from Microeconomics 21st edition. I am still confused about a certain concept. Why does MC cut ATC at its minimum point?Thank youarrow_forwardThe graph illustrates the marginal costs of a thermometer producer facing a constant selling price of $1.00 per thermometer. Suppose that to produce the level of output suggested by using marginal thinking analysis the thermometer producer incurs fixed costs of $20 and variable costs of $172. Would the producer maximize profits by producing at this level? a. Yes. Producers should always use "marginal thinking." b. Yes. Because revenues just cover total costs, the firm is breaking even. c. Yes. Because revenues exceed variable costs, the firm should produce at that level. d. No. Because revenues do not cover total costs, the firm should cease production. e. No. Because revenues do not cover variable costs, the firm should cease production. The graph illustrates the marginal costs of a thermometer producer facing a constant selling price of $1.00 per thermometer. 1.00 Marginal Cost Price Cost and Price ($) .50 60 100 120 Quantity of Thermometers Suppose that to produce the level of…arrow_forward
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