Question
Please help with the following question
The typical cost curves are U-shaped due to the law of supply. law of diminishing marginal utility. law of demand. law of diminishing marginal product. Using the table above, what are the total fixed costs for an output of 4? If a firm gets so large that management of employees and other resources becomes a costly problem, it will be experiencing diminishing marginal product. diseconomies of scale. economies of scale. constant returns to scale. When the marginal physical product is rising, marginal cost is rising. marginal cost is falling. total cost is falling. average total cost is increasing. Minimum efficient scale applies only to firms with U-shaped long-run average cost curves. is the point at which diseconomies of scale begin for a particular firm. is the lowest rate of output per unit of time at which long-run average costs reach a minimum for a particular firm. is the point at which economies of scale begin for a particular firm. After some point successive equal increases in a variable factor of production when added to a fixed amount of inputs, will result in smaller increases in output. This is known as short run average cost. marginal physical product. the long run. the law of diminishing marginal product. The time period during which all factors of production can be varied is the calendar year. long run. production time. short run. An increase in long - run average costs resulting from increases in output is attributed to the law of diminishing marginal product. attributed to diseconomies to scale. attributed to economies of scale. attributed to constant returns to scale.
Explanation / Answer
1 D Law of Diminshing Marginal Product
2.C $100
3.B Diseconomies of scale
4.B Marginal Cost is falling
5.B is the point at which diseconomies of scale begin for a particular firm.
For this question the minimum efficent scale is the point at which the firm is at its lowest point on the long run average cost curve.At this point the economies of scale have been fully exploited and hence it is the point at which the diseconomies of scale begin for a particular firm.So, this not the lowest rate of output per unit of time as answeres by others beacuse if anything it should be the lowest cost per unit of output and not lowest rate of output per unit of time.
6.D the law of diminsihing marginal product
7.B long run
8.C is attributed to econoies of scale