Output A. 0 1 2 3 5 6 Total Fixed Cost 12 12 12 12 12 12 12 Total Variable Cost OB. The firm is in the long run C. Both A and B D. Impossible to determine from the information given in the table. 0 5 9 14 21 31 Which of the following is true about the firm whose costs are described in the above table? The firm is in the short run 44

Output A. 0 1 2 3 5 6 Total Fixed Cost 12 12 12 12 12 12 12 Total Variable Cost OB. The firm is in the long run C. Both A and B D. Impossible to determine from the information given in the table. 0 5 9 14 21 31 Which of the following is true about the firm whose costs are described in the above table? The firm is in the short run 44

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 2SQP

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Similar questions

What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
What is the difference between a fixed input and a variable input?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
Are fixed costs also sunk costs? Explain.
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?