The following table provides information about the relationship between a firm's output and its factors of production in the short run:
Which one of the following statements describes the situation in this firm?
A) There are constant returns to scale.
B) There are increasing returns to scale.
C) There are diminishing returns to scale.
D) There are increasing marginal returns.
E) There are diminishing marginal returns.
Correct Answer:
Verified
Q5: When counting the cost of a product
Q6: A production function shows
A) the effect of
Q7: An equation showing the output that will
Q8: The short run, as economists use the
Q9: Which of the following is a correct
Q11: With L representing the quantity of labour,
Q12: Which of these statements is false?
Q13: We can define total costs as
A) TFC
Q14: The formula for AVC is
A)
Q15: Which of the following is true?
A) MC
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