Refer to the information provided in Table 8.4 below to answer the question(s) that follow.
Table 8.4
-Refer to Table 8.4. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, what production technique should this firm use to produce 2 units of output?
A) production technique A
B) production technique B
C) The firm is indifferent between production technique A and production technique B.
D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given.
Correct Answer:
Verified
Q169: _ marginal returns implies _ marginal costs.
A)
Q170: The increase in total cost resulting from
Q171: One formula for _ is ΔTVC/Δq.
A) AVC
B)
Q172: At an output of zero, _ is
Q173: Refer to the information provided in
Q175: _ are likely a fixed cost of
Q176: Refer to the information provided in
Q177: Marginal cost is equal to _ when
Q178: Which of the following statements is true?
A)
Q179: Total variable costs _ with decreasing output.
A)
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