Based on the following table, which of the following statements is true? P TR MR TC MC $30 $15 --- --- $30 $30 $30 $25 $10 2 $30 $60 $30 $40 $15 3 $30 $90 $30 $60 $20 4 $30 $120 $30 $85 $25 $30 $150 $30 $115 $30 6 $30 $180 $30 $150 $35 A Expansion of output occurs because of increasing returns to scale. B Expansion of output causes diseconomies of scale to occur. Expansion of output causes input prices to rise as demand for inputs increases. Expansion of output leaves input prices constant as demand for inputs increases

Brief Principles of Macroeconomics (MindTap Course List)
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2 Based on the following table, which of the following statements is true?
Q
TR
MR
TC
MC
$30
$15
---
1
$30
$30
$30
$25
$10
2
$30
$60
$30
$40
$15
$30
$90
$30
$60
$20
4
$30
$120
$30
$85
$25
5
$30
$150
$30
$115
$30
6
$30
$180
$30
$150
$35
A
Expansion of output occurs because of increasing returns to scale.
BO
Expansion of output causes diseconomies of scale to occur.
Expansion of output causes input prices to rise as demand for inputs increases.
DO
Expansion of output leaves input prices constant as demand for inputs increases.
3.
Transcribed Image Text:2 Based on the following table, which of the following statements is true? Q TR MR TC MC $30 $15 --- 1 $30 $30 $30 $25 $10 2 $30 $60 $30 $40 $15 $30 $90 $30 $60 $20 4 $30 $120 $30 $85 $25 5 $30 $150 $30 $115 $30 6 $30 $180 $30 $150 $35 A Expansion of output occurs because of increasing returns to scale. BO Expansion of output causes diseconomies of scale to occur. Expansion of output causes input prices to rise as demand for inputs increases. DO Expansion of output leaves input prices constant as demand for inputs increases. 3.
3 In economics, which of the following occurs at the shutdown point?
A O
The average variable cost curve crosses the marginal cost curve.
BO
The average variable cost curve crosses the total revenue curve.
The marginal cost curve crosses the average variable cost curve.
DO
The marginal cost curve crosses the total revenue curve.
Transcribed Image Text:3 In economics, which of the following occurs at the shutdown point? A O The average variable cost curve crosses the marginal cost curve. BO The average variable cost curve crosses the total revenue curve. The marginal cost curve crosses the average variable cost curve. DO The marginal cost curve crosses the total revenue curve.
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