Diminishing returns - Study guides, Class notes & Summaries

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays A) diminishing returns. B) economies of scale. C) diseconomies of scale. D) declining fixed costs. correct answers B) economies of scale. The long-run average cost curve shows A) the lowest average cost of producing every level of output in the long run. B) where the most profitable level of output occurs. C) the average cost of producing where diminishing returns are not present....

D. None of the above correct answers If the marginal product of labor is 2, the marginal product of capital is 4, the wage rate is $3, the rental price of capital is $6, and the price of output is $1.50, then the firm should . Increase output by hiring more labor, more capital, or both. b. Hold output constant, but hire more labor and less capital. c. Decrease output by reducing the quantity of capital, reducing the number of units of labor, or both. d. None of the above is correct. ...

Test Bank for Microeconomics, 3rd Canadian Edition 3ce by Glenn Hubbard, Anthony Patrick OBrien. Full Chapters test bank included 1 Economics: Foundations and Models Economics in Your Life and Career: How Much Will You Pay for a Cup of Coffee? Three Key Economic Ideas People Are Rational People Respond to Incentives Apply the Concept: Does Canada’s Health Care System Contribute to Obesity? Optimal Decisions Are Made at the Margin Solved Problem: 1.1 Binge Watching and Decisions at...

TEST BANK Enterprise Risk Management S - The Marketplace to Buy and Sell your Study Material 1 RSK2601 TEST BANK Question 1 Which one of the following is a benefit of effective risk and opportunity management? 1) Improved profit certainty 2) Increased shareholder value 3) Increased stakeholder confidence Correct option 3 4) Lower economic returns Explanation Improved cost certainty, sustainable shareholder value, increased stakeholder confidence and higher economic returns are all benefits of ef...

FCFF (using EBITDA) CORRECT ANSWER FCFF = EBIDTA(1-T) + DEP(T) - Finv - Winv Converting FIFO to LIFO COGS CORRECT ANSWER FIFO COGS = LIFO COGS - (End LIFO Reserve - Beg LIFO reserve) Engle- Granger Test CORRECT ANSWER Test whether 2 variables are cointegrated. Regress 1 data series against the other and check residuals for unit root. Steady State of Growth Formula CORRECT ANSWER growth = Growth Rate TFP/1-(Labor cost in total factor cost) + labor force growth Labor productivity growt...

The law of diminishing marginal returns states that increases in the variable input reduce the total product. a. True b. False correct answers b. False We should use relatively more labor if we learn that the marginal product per dollar of labor expenditures is less than a marginal product per dollar of capital expenditures. a. True b. False correct answers b. False If a firm has increasing returns to scale, then increasing all inputs by 1% will increase output by more than 1% a...

MGCR 293 International Business Final Exam Practice Multiple-Choice Questions and answers new update McGill University Section 1: 50 Questions: Each question is worth 1 point. 1. A firm’s total cost function is TC = 100 + 50Q – 10Q2 + Q3. What is the output level (Q*) that minimizes the average variable cost? A. Q* = 5 units. B. Q* = 10 units. C. Q* = 15 units. D. Q* = 20 units. E. None of the above. 2. A firm’s total cost function is TC = 10 + 5Q – 9Q2 + 0.5Q3. What is the...

Complete Solutions Manuals for Intermediate Accounting, Volume 1 13ce 13th Canadian Edition by Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy. ISBN-13: 0452 Full Chapters Solutions included with Excel files + Extra files 1 The Canadian Financial Reporting Environment 1-1 Capitalizing on Financial Reporting 1-1 Preview of Chapter 1 1-3 1.1 Financial Statements and Financial Reporting 1-3 Accounting and Capital Allocation 1-4 Stak...

FAC1601 ASSIGNMENT 1 Semester 2 2023 (ANSWERS) Question 1 Answer saved Marked out of 1.00 Question 2 Answer saved Marked out of 1.00 Question 3 Answer saved Marked out of 1.00 QUIZ The definition of a liability is: A. A future economic resource controlled by a reporting entity as a result of a past event. B. A future economic resource controlled by a reporting entity as a result of a future event. C. A present economic resource controlled by a reporting entity as a result of a pa...

PUBH 3130 Final Test Questions with Correct Answers what are the various combination of health inputs that produce health status (at both individual and population levels) - Answer-- medical services - lifestyle (personal behaviors that affect health) - environment (ex: air, soil, water pollution) - biological makeup (age, sex, genetic predisposition) - income - education - housing - gov't programs (insurance & others) diminishing marginal returns - Answer-- a curve of health inputs...