Bundle: Essentials Of Economics, 8th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337378833
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 12, Problem 2CQQ
To determine
Diminishing marginal product.
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Diminishing marginal product explains why, as a firm’s output increases.a. the production function and total-cost curve both get steeper.b. the production function and total-cost curve both get flatter.c. the production function gets steeper, while the total-cost curve gets flatter.d. the production function gets flatter, while the total-cost curve gets steeper.
The law of diminishing marginal returns states:
Select one:
a. As a firm uses more of a variable factor of production, total product (TP) eventually decreases.
b. As the size of a plant increases, marginal product (MP) eventually decreases.
c. As a firm uses more of a variable factor of production, its average cost (AC) eventually decreases.
d. As a firm uses more of a variable factor of production, with a given quantity of the fixed factor of production, the MP of the variable factor eventually decreases.
A firm has the production function f(x, y) = x®y0.3, where a>0.7. This firm has
Select one:
a. decreasing returns to scale and increasing marginal product for factor x and y.
b. None of the above.
c. increasing returns to scale and diminishing marginal product of factor x.
d. constant returns to scale.
e. decreasing returns to scale and diminishing marginal products for factor y.
Chapter 12 Solutions
Bundle: Essentials Of Economics, 8th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
Ch. 12.1 - Prob. 1QQCh. 12.2 - Prob. 2QQCh. 12.3 - Prob. 3QQCh. 12.4 - Prob. 4QQCh. 12 - Prob. 1CQQCh. 12 - Prob. 2CQQCh. 12 - Prob. 3CQQCh. 12 - Prob. 4CQQCh. 12 - Prob. 5CQQCh. 12 - Prob. 6CQQ
Ch. 12 - Prob. 1QRCh. 12 - Prob. 2QRCh. 12 - Prob. 3QRCh. 12 - Prob. 4QRCh. 12 - Prob. 5QRCh. 12 - Prob. 6QRCh. 12 - Prob. 7QRCh. 12 - Prob. 8QRCh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Prob. 5PACh. 12 - Prob. 6PACh. 12 - Prob. 7PACh. 12 - Prob. 8PACh. 12 - Prob. 9PACh. 12 - Prob. 10PA
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- QUESTION 25 The Marginal Cost curve crosses the Average Total Cost curve at its maximum. True Falsearrow_forwardHow would each of the following affect average total cost, average variable cost, and marginal... Question: How would each of the following affect average total cost, average variable cost, and marginal cost? A. An increase in the cost of the lease of the firm's building. B. A reduction in the price of electricity. C. A reduction in wages. D. A change in the salary of the president of the company.arrow_forwardUse the following two statements to answer this question: 1. The average cost curve and the average variable cost curve reach their minima at the same level of output. II. The average cost curve and the marginal cost curve reach their minima at the same level of output. Both I and II are false. I is true, and II is false. O Both I and II are true. Olis false, and II is true.arrow_forward
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