Question
Which of the following does not describe diseconomies of scale? increasing average costs of production inputs increasing faster than output decreasing returns to scale decreasing
Which of the following does not describe diseconomies of scale?
increasing average costs of production
inputs increasing faster than output
decreasing returns to scale
decreasing average costs of production
The law of diminishing returns to the variable factor shows that:
the firm enters a stage where its average cost is increasing
the firm's marginal revenue is decreasing
the firm's marginal product is decreasing
the firm's marginal product is increasing
With 50 units of labor, a firm can produce 2,000 units of output; with 60 units of labor the firm can produce 4,000 units of output. The marginal product of an extra unit of labor is
200
10
60
20
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