The reason the marginal cost curve eventually increases as output increases for the typical firm is because of Multiple Choice   diseconomies of scale.   diminishing marginal utility.   diminishing marginal returns.   increasing opportunity cost.

Q: The online shopping market is perfectly competitive. Profit-maximizing firms in the market are…

A: Perfect competition is observed when all firms sell homogenous goods, market share does not…

Q: In the long run, a profit maximising firm produces any given level of output by choosing the…

A: In the long run, the firm produces any output based on the long-run average total cost curve. The…

Q: Input Market Question Give an example of how to value cost of purchases in distorted input market…

A: Factor market" is the representation economists utilize for all of the resources that businesses…

Q: What is meant by selling cost? Name one market where selling cost is applicable

A: Selling cost The overall expense made by a monopolistically competitive corporation in trying to…

Q: Marginal product will eventually go down because of  the law of diminishing marginal utility.  the…

A: The marginal product of a factor input is the additional output that is generated when an…

Q: The supply curve is upward sloping because of: Group of answer choices a. the law of increasing…

A: Supply curve is a graphical representation showcasing the relationship between price and quantity of…

Q: Long-run average total cost (Multiple Choices )     might have an upward-sloping segment that…

A: Long run average total cost is the long run cost per unit. Economies of scale refer to the situation…

Q: Select choices which are true about Marginal Costs. (Select all that apply.) (change in Total Cost)…

A: Marginal cost is that cost which is incurred when one additional unit of output is produced.

Q: You are a manager of a firm that experiences economies of scope between all the products…

A: Economies of scope are cost advantages that result when firms provide a range of products instead of…

Q: You own a printing firm. Two of your senior managers provided you with advice. The first manager…

A: The profit of a firm is calculated by subtracting the total costs incurred on production from the…

Q: Marginal cost is the:  rate of change in total fixed cost that results from producing one more unit…

A: Marginal cost by definition is the cost incurred for producing an extra unit of the good or…

Q: Which of the following illustrates a fixed cost?:   wages paid to a temporary worker website design…

A: Fixed costs can be considered as a cost that the producer has to incur irrespective of the…

Q: The data below shows tabulation on the production of a hypothetical product. Output (Q) Total cost…

A: Total fixed cost (TFC): TFC is the cost that a firm must occur even when the quantity of output is…

Q: In the ice cream industry, in the short run, what cost includes the cost of cream and sugar, but not…

A: The marginal cost-  is the difference in overall production costs resulting from manufacturing or…

Q: Which of the following is an explicit cost? The opportunity cost of an owner/entrepreneur’s time…

A: An explicit cost is an out of pocket expense that is incurred in the course of production of a good…

Q: Consider a firm that has two types of employees in their marketing department with the following…

A: Following are the issues with each kind of workers as far as bonus 1. Sales staff-They are paid…

Q: Economic profit is... A-inclouded in the firm’s total opportunity cost . B-equal to normal profit…

A: Profit refers to the financial benefit realized by an individual or a firm when the revenue…

Q: The long run is characterized by: Multiple Choice at least one fixed input. the relevance of the law…

A: The long run is a period of time in which all factors of production and costs are variable. In the…

Q: In the long run... Multiple Choice all inputs are fixed. None of these options are correct. the…

A: Long run in economics is a time period where firm can adjust all the costs whereas they can only…

Q: A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have…

A: Opportunity cost =10% of $100=$10 Economic profit =total revenue - total cost(explicit + implicit)…

Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…

A: In case of perfect competition there are large number of buyers and sellers. The firms sell…

Q: If the marginal value of some variables is above the average value of the variable:* the marginal…

A:

Q: The derived demand curve for a resource: is downward sloping because consumers buy more of goods…

A: The derived demand curve for the resource explains that when the price of the resource is increase…

Q: Everything U Want Stores is trying to decide whether to keep or drop the hardware department in its…

A: Sunk cost refers to the cost which once incurred can not be recovered. The opportunity cost is…

Q: People will consistently sit through terrible movies at the theater instead of leaving early. This…

A: The economics as a study is based upon the idea that the resources with the economies have a limit…

Q: In order to maximize profits, the firm in a perfectly competitive industry produces where: Minimum…

A: In the producer's theory, a rational producer will always try to produce at a level where it…

Q: A firm’s short-run marginal cost______________________________.   increases with output remain…

A: By definition, marginal cost refers to the additional amount of cost which the firm has to bear for…

Q: The feature that distinguishes short-run from the long-run is the *       length of time it takes to…

A: Short run and long run are period of times in production of goods which differ according to the…

Q: The short run is a time period such that O the existing firms in the market do not have sufficient…

A: The short run is a time period such that the firms which are prevailing in the market don't have…

Q: The law of diminishing marginal returns explains why the short run average total cost curve and the…

A: Correct answer a) Why the short run average total cost curve and the short run average variable…

Q: In the short run, the firm should continue to produce if and only if a.Price exceeds average total…

A: Total fixed cost is independent of output produced whereas  variable cost varies with the level of…

Q: the effect of fixed costs upon AC as output increases   the law of demand   the law of constant…

A: increasing and decreasing returns to scale

Q: Fixed costs are associated with Multiple Choice   highly adjustable inputs such as labor.   both…

A: Fixed costs are costs that does not change with increase or decrease in production/sales. They are…

Q: f a firm has negative accounting profits in the short run, it should   Question 10 options:   All…

A: Accounting profit = Total revenue - Explicit cost Economic profit = Total revenue - Explicit cost -…

Q: The long run is best defined as a time period )during which prices of other goods change. that is…

A: The short-run (SR) is a time span where the prices of inputs are constant but the prices of output…

Q: Increaseing marginal returns means that as the firm expands its output, its: OPTIONS long-run…

A: Increase in marginal returns: An increase in marginal returns refers to the variable input when an…

Q: People will consistently sit through terrible movies at the theater instead of leaving early. This…

A: Sunk cost is the cost which cannot be recovered as ticket cost of the movie  in the case. Because if…

Q: If average total cost decreases as output increase, this indictes that there are

A: In the long run, If the average total cost decreases as output increases, this indicates that there…

Q: A competitive firm is selling a oroduct on Rs 30 . Is it possible that he sells the product on Rs 35…

A: The perfectly competitive is the type of market where there large number of buyers and sellers. Each…

Q: Cash expenditures a firm makes to pay for resources are called: a. Explicit costs b. Opportunity…

A: Explicit costs are cash based costs for a firm—for instance, installments for wages and pay rates,…

Q: In the short run, behavior of production is explained by Select one: a. The law of diminishing…

A: There are two kinds of periods faced by a business company based on the variability of its…

Q: An increase in the cost of an input will cause the supply curve of the output to shift left. a.…

A: Supply curve reflects the positive relationship between price and supply of goods. There are various…

Q: When the marginal cost is lesser than the average cost the firm is producing in which…

A: Costs are the expenses that firms incur in the production of goods and services.

Q: The following statement describes which source of low costs? “The more the firm has ever made, the…

A: Given :  The more the firm has ever made, the better it gets at making.

Q: If firms "satisfice" this means that a. objectives such as profit are not maximized. b. managers…

A: In a market, a firm's cost and pricing decision provide information about its behavior and market…

Q: The law of diminishing returns indicates that: a. as extra units of a variable resource are added to…

A: (Q) The law of diminishing returns indicates that: a. as extra units of a variable resource are…

Q: Multiple Choice : O. earning a normal profit . O. earning an economic profit . O. generating a loss…

A: When calculating profit margins, explicit and hidden costs are considered; one way of looking at…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.