ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 8, Problem 6.12P
To determine
The reason behind the upward slope of increasing cost industry in the long run. The causes leading to the increasing costs in the increasing cost industry.
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Students have asked these similar questions
15. Please select all that are true regarding variable costs (VC):
Variable costs must be more than revenue for profitability
Variable costs per unit are assumed to be constant in the relevant range of output
Total variable costs are from all Q produced
Variable costs are the total cost of producing a good or service
Variable costs change over time
Variable costs are assumed to be proportionate to Quantity
Variable costs are the marginal profit per unit
Variable costs are less of a risk than fixed costs since FC remain even at zero Q
Question 1. What impact do falling input prices have on a market’s long-run supply curve?
a. Falling input prices push the market supply curve to the left.
b. Falling input prices push the market supply curve to the right.
c. Falling input prices do not impact the market supply curve.
Question 2. How can market prices fall when both the demand and supply for a good or service increase?
a. Market demand would have to increase greater than market supply.
b. Market supply would have to increase greater than market demand.
c. Market demand and supply would have to increase by the same amount.
d. None of the above.
q4-
Total cost increases from $500 to $600 when output increases from 20 to 30 units. Fixed costs are $200. Which of the following is true?
Select one:
a.
The production cost per unit is increasing
b.
Average fixed costs rise
c.
Marginal cost is equal to fixed cost
d.
Average total cost falls
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