Author Question: Short-run supply curves for perfectly competitive firms tend to be upward sloping because: A) ... (Read 48 times)

xroflmao · **on:** Jul 1, 2018

Short-run supply curves for perfectly competitive firms tend to be upward sloping because:

A) there is diminishing marginal product for one or more variable inputs.
B) marginal costs increase as output increases.
C) marginal fixed costs equal zero.
D) A and B are correct.
E) B and C are correct.

Question 2

For Figure 6.9 in the book, MRTS = K/(4L) with capital (K) on the vertical axis of the isoquant map. Suppose L=100 hours and K=400 machine hours at the current level of output.

How much additional labor is required to maintain output if we reduce capital by one machine hour? A) One hour
B) Two hours
C) Three hours
D) Four hours