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59. How to get economic loss graphically using the MR = MC approach? multiply per unit loss by total output get the per unit difference of ATC and price multiply by loss minimizing output multiply per unit loss by output all choices

59. How to get economic loss graphically using the MR = MC approach? multiply per unit loss by total output get the per unit difference of ATC and price multiply by loss minimizing output multiply per unit loss by output all choices

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 4SCQ: Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the...
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59. How to get economic loss graphically using the MR = MC approach? multiply per unit loss by total output get the per unit difference of ATC and price multiply by loss minimizing output multiply per unit loss by output all choices 68. If firms are rational, why is it that they could still overproduce or underproduce? Because of: their inability to correctly estimate or forecast customer demand the start of the law of diminishing returns can be known by experience and by trial and error loose coordination between marketing and production departments all options
Transcribed Image Text:59. How to get economic loss graphically using the MR = MC approach? multiply per unit loss by total output get the per unit difference of ATC and price multiply by loss minimizing output multiply per unit loss by output all choices 68. If firms are rational, why is it that they could still overproduce or underproduce? Because of: their inability to correctly estimate or forecast customer demand the start of the law of diminishing returns can be known by experience and by trial and error loose coordination between marketing and production departments all options
71. Diminishing returns can be caused by: the physical limitations of variable inputs the physical limitations of fixed input the physical limitations of both variable and fixed inputs all of the above 72. The resulting increase in the total output as X and Y inputs increase per unit at a time is called: production function increasing returns to scale constant returns to scale returns to scale
Transcribed Image Text:71. Diminishing returns can be caused by: the physical limitations of variable inputs the physical limitations of fixed input the physical limitations of both variable and fixed inputs all of the above 72. The resulting increase in the total output as X and Y inputs increase per unit at a time is called: production function increasing returns to scale constant returns to scale returns to scale
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