250020001500Returns te scale: 0.331000Price 210 15 20 25 30Size dength in feet)35 40Rental price 100The interactive above is from the loarning object, it will automatically find the profit maximizing length of the truck Adam should rent at given prices, rental rates,productivities, and returns to scale.It only the productivity of the truck Adam chooses to rent decreases, which of the following would be true at the new profit maximizing level of output and lengthof truck?Select the two that applyO A decrease in marginal costO A decrease in total costsO A decrease in total revenuoO An incroase in the amount of labor Adam hiresRevenue

Revenue: It refers to the extra benefits or money that company earns. Revenue helps in setting down…

2000 Returns te scale: 0.33 1500 1000 k oice Price 2 10 15 20 25 3035 40 Size dength in feeti Rental price 100 The interactive above is from the loarning object, it will automatically find the profit maximizing length of the truck Adam should rent at given prices, rental rates, productivities, and returns to scale. t only the productivity of the truck Adam chooses to rent decreasos, which of the following would be truo at the new profit maximizing level of output and length of truck? Select the hwo that apply D A decrease in marginal cost O A decrease in total costs O A decrease in total revenue An incroase in the amount of labor Adam hires

2000 Returns te scale: 0.33 1500 1000 k oice Price 2 10 15 20 25 3035 40 Size dength in feeti Rental price 100 The interactive above is from the loarning object, it will automatically find the profit maximizing length of the truck Adam should rent at given prices, rental rates, productivities, and returns to scale. t only the productivity of the truck Adam chooses to rent decreasos, which of the following would be truo at the new profit maximizing level of output and length of truck? Select the hwo that apply D A decrease in marginal cost O A decrease in total costs O A decrease in total revenue An incroase in the amount of labor Adam hires

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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Similar questions

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What is the difference between a fixed input and a variable input?
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A firm uses a single input to produce a commodity according to itsshort-run production function f(x) = 4√x, where x is the number of units ofinput. The commodity sells for $100 per unit. The input cost $50 per unit.(a) Write down a function that states the firm’s profit as a function ofthe amount of input.(b) What is the profit maximizing amount of input and output?(c) Suppose the firm is taxed $20 per unit of its output and the priceof its input is subsidized by $10, explain in detail how this will affect the newinput and output levels?
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An SMSE has a production process with fixed lot size A. The table belowshows the total output and the number of workers:No. of Workers (L) Total Output (Q) 0 0 1 10 2 30 3 50 4 56 5 59 6 60 7 60 8 58(a) Determine marginal productivity of labour and average productivity oflabour for each unit of labour. (b) Show the three stages of production (c) Suppose the market price of the output Rs. 150 and the wage rate isRs. 900, how many workers would this firm hire? What if the pricedecreases to Rs. 100?(d) Suppose the market price increases to Rs. 250, what is the highestwage rate the firm would be willing to pay to…