Author Question: Jake can wash 6 cars or mow 3 lawns during the same time. His marginal cost of washing a car is: a. ... (Read 59 times)

abern · **on:** Jun 30, 2018

Jake can wash 6 cars or mow 3 lawns during the same time. His marginal cost of washing a car is:
a. mowing one-third lawn.
b. mowing half a lawn.
c. mowing one lawn.
d. mowing 2 lawns.

Question 2

The long-run average total cost curve is U-shaped because:
a. a firm initially experiences economies of scale and then diseconomies of scale.
b. the law of diminishing returns to a factor sets in beyond a certain level of output.
c. a firm initially experiences diseconomies of scale and then economies of scale.
d. division of labor keeps labor productivity constant irrespective of expansion or contraction in production.
e. the efficiency of capital increases over a period of time.