Reference no: EM13893728

Which of the following is true about the long-run average cost curve?

At its current short-run level of production, a firm's average variable costs equal $30.00 per unit and its average fixed costs equal $25.00 per unit. Its total costs at this production level equal $3,500.

The wage rate divided by marginal product equals

 

The short run is defined as

 

Total                  Input	Total Product
(Labor)	(Televisions)
1	12
2	25
3	39
4	50
5	60
6	58
7	54
8	48

In the table above, diminishing returns begins with the addition of worker number.

In the table above, the marginal physical product becomes negative when the ___worker is added

Using the 3-point curved line drawing tool, draw a possible long-run average cost curve for a firm that always experiences diseconomies of scale no matter what plant size it selects. Label this curve ‘ATC'.

The law of diminishing marginal returns shows the relationship between

The shape of the short-run cost curves are the result of

If a firm hires an additional worker and discovers that its total physical output has fallen, then it must be true that

In economics, the planning horizon is defined as

Economies of scale in production

 

Which of the graphs represents the correct relationship among the cost curves?

 

In the long run there

Consider the long-run average cost curve to the right.

The firm's minimum efficient scale occurs