This topic contains a solution. Click here to go to the answer

Author Question: Suppose a company increases production from a point where marginal cost equals average total cost to ... (Read 128 times)

P68T

  • Hero Member
  • *****
  • Posts: 509
Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? Why?
 a. No, average total costs have increased which means the company is not minimizing losses.
  b. Yes, because average variable costs are always less than average total costs.
  c. No, because the marginal cost of producing the last unit is the same as the marginal revenue.
  d. Yes, even though the previous level of output had minimized the average total cost, there was still profit to be earned by producing additional units.
  e. No, the previous level of output was the most efficient because it had the lowest average total cost.

Question 2

If a tripling of price triples the quantity of a good supplied, the price elasticity of supply for this good is:
 a. 3.
  b. 300.
  c. 1.
  d. 1.
  e. 3.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kishoreddi

  • Sr. Member
  • ****
  • Posts: 329
    • Your online Help in Biology and chemistry
Answer to Question 1

d

Answer to Question 2

c




P68T

  • Member
  • Posts: 509
Reply 2 on: Jun 30, 2018
Gracias!


parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

For a complete list of videos, visit our video library