Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Figure Average Total Cost (S) ATOD ATCC ATCA ATCB M N Quantity of Automobiles per day Refer to the figure above. Diseconomies of scale will

image text in transcribedimage text in transcribed
Figure Average Total Cost (S) ATOD ATCC ATCA ATCB M N Quantity of Automobiles per day Refer to the figure above. Diseconomies of scale will occur at which output levels? O a. output levels greater than N O b. output levels between M and N O c. output levels less than M O d. All of the above are correct as long as the firm is operating in the long run.The table shows the revenues and costs of a competitive firm: Quantity Total Revenue Total Cost SO $3 $8 $6 $16 $10 $24 $15 $32 $21 $40 $28 5 $48 $36 $56 $45 Refer to the table above. To maximize profits, the firm will produce up to O a. 7 units of output because total revenue is maximized at this quantity. O b. 5 units of output because marginal revenue equals marginal cost at this quantity. O c. 4 units of output because marginal revenue is greater than marginal cost at this quantity. O d.6 units of output because marginal revenue equals marginal cost at this quantity. O e. 1 unit of output because marginal cost is minimized at this quantity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

French Banking And Entrepreneurialism In China And Hong Kong From The 1850s To 1980s

Authors: Hubert Bonin

1st Edition

0429560095, 9780429560095

More Books

Students also viewed these Economics questions

Question

Name two parameters of a binomial random variable.

Answered: 1 week ago

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago