Question
identify whether true or false and give short explanation With fixed costs of $400, a firm has average total costs of $3 and average variable
identify whether true or false and give short explanation
With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output is 800 units.
When marginal product reaches its maximum total product is increasing if marginal product is still positive
When the total product curve is falling, the marginal product of labor is negative.
The law of diminishing returns states that as a firm use more of a variable resource, given the quantity of fixed resources, marginal product of the firm will eventually decrease.
A firm operating under conditions of perfect competition will find that its marginal costs equal its average costs
When a perfectly competitive industry is in long term equilibrium all firms in the industry will be operating at their lowest possible costs
A price-taking firmcannot influence the price of the product it sells
One of the requirements for a monopoly is thatthere are several close substitutes for the product.
A monopoly maximizes profit by choosing the quantity at which marginal revenue equals marginal cost.
The key difference between a competitive firm and a monopoly is the ability to influence the price.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started