A firm is currently producing an amount of output for which they have diminishing total returns....
A firm is currently producing an amount of output for which they have diminishing total returns.
True or False and explain: This firm is not maximizing profit.
Homework Answers
True, when the diminishing returns sets in the production process then the marginal product will be negative which implies that each additional unit that is employed to help in the production is actually not contributing in the production and leading to decrease in the total product. For the profit maximization, a firm should produce at that level of output where MR = MC and we know the firm will never choose that point where MR is negative.
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A firm is currently producing an amount of output for which they
have diminishing total returns....
4. A firm will begin to experience diminishing returns at the output where marginal A. cost...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
A profit-maximizing firm in a competitive market is currently producing 100 units of output
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit?b. what is the marginal cost?c. what is its average variable cost?d. is the efficent scale of the firm more than, less than, or equal to 100 units?
What happens if a competitive firm is currently producing a level of output at which marginal...
What happens if a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost? Select one: O a. A one-unit decrease in output will increase the firm's profit. b. A one-unit increase in output will increase the firm's profit. O c. Total revenue exceeds total cost. d. Total cost exceeds total revenue.
If a firm experiences diminishing marginal product, then it means that total output decreases with additional...
If a firm experiences diminishing marginal product, then it means that total output decreases with additional variable inputs. True or false? I think it is true.
6. A price-taker firm is currently producing 50 units of output at an average total cost...
6. A price-taker firm is currently producing 50 units of output at an average total cost of $3 per unit. If the market price is $7, then the firm's total economic profit is a. $4. b. $150. c. $200. d. $350.
Question 7-Firms in Competiive Markets: A competitive firm currently produces and sells 500 units of output....
Question 7-Firms in Competiive Markets: A competitive firm currently produces and sells 500 units of output. Its total revenue is $6,000; the marginal cost of producing the 500 unit of output is $14.50; and the average total cost of producing the 500th unit of output is s9.50. Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
A firm with 2 labourers already has 20 units of total output and now it is currently producing 35...
A firm with 2 labourers already has 20 units of total output and now it is currently producing 35 units of total output.How much extra amount of output are the 2 labourers earning?
1. If a profit-maximizing competitive firm has constant returns to scale, then its long-run profits must...
1. If a profit-maximizing competitive firm has constant returns to scale, then its long-run profits must be zero. True or False? Explain your answer. 2. A firm is producing output using one variable factor of production. The firm’s production function is y = 8x¹ˡ². The price of the output is $24 and the price of input is $8 per unit. How many units of the input should the firm use?
1). Describe the law of eventually diminishing marginal returns. Does this law occur in the short...
1). Describe the law of eventually diminishing marginal returns. Does this law occur in the short run or in the long run. Why? Will a profit maximizing firm ever operate in the range of diminishing returns. Explain your answer.
Diminishing returns to labor means that the greater the amount of output, the less additional labor...
Diminishing returns to labor means that the greater the amount of output, the less additional labor that is needed. as more labor is employed, each additional worker produces less additional output. as more labor is employed, total output will increase. the greater the amount of output, the less labor that is needed. as more labor is employed, total output declines.
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
What happens if a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost? Select one: O a. A one-unit decrease in output will increase the firm's profit. b. A one-unit increase in output will increase the firm's profit. O c. Total revenue exceeds total cost. d. Total cost exceeds total revenue.
6. A price-taker firm is currently producing 50 units of output at an average total cost of $3 per unit. If the market price is $7, then the firm's total economic profit is a. $4. b. $150. c. $200. d. $350.
Question 7-Firms in Competiive Markets: A competitive firm currently produces and sells 500 units of output. Its total revenue is $6,000; the marginal cost of producing the 500 unit of output is $14.50; and the average total cost of producing the 500th unit of output is s9.50. Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
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