he cost that does not change as output changes is A) totail fixed cost B) averag
ID: 1125950 • Letter: H
Question
he cost that does not change as output changes is A) totail fixed cost B) average fxed cost C) total variable cost D) average variable cost 63-9) If a firm does not produce any output, its A) total fixed cost must be zero. B) economic profit must be positive. C) total variable cost must be zero. D) total costs must be zero. 64.56) The Wshape of he average variable, average blal and marial cost cunves reflecs A) increasing marginal returms. B) decreasing marginal retuns C) both increasing and decreasing marginal retums. D) decreasing marginal product 65-11. One requirement for an industry to be perfectly competitive is that A) there are no restrictions on entry into or exit from the market. B) there are multiple restrictions on entry into or exit from the market C) there are many fims selling different products D) sellers and buyers have imperfect information about prices 66-16. Which of the following market types has the fewest number of firms? A) perfect competition C) oligopoly D) monopoly 67-1. Labor, land, and capital used in production ane a. resources. b. outputs c· productivity. d. technological progress e. innovations 68-4. Average total cost is calculated by dividing a. the change in total cost by the change in the quantity of output b total output by the number of people employed. the change in total output by the change in the number of people employed total cost by total output total output by total cost. c. d. e,Explanation / Answer
1. The cost that does not change as output changes is Fixed Cost. Fixed costs are one time costs of setting up the plants and it doesn’t vary with increasing outputs.
2. If the firm does not produce any output, its total variable cost must be zero as it is not producing any thing.
3. The U-Shape of the average variable, average total, and the marginal cost curves reflects both increasing and decreasing marginal returns.
4. One requirement for the industry to be perfectly competetive is that there are no restrictions on entry into or exit from the market. There should be easy entry or exit for everyone whoever wants to produce in the industry.
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