I need help checking thes answers, please 13. A tangency point between an isoqua

Question

I need help checking thes answers, please

13. A tangency point between an isoquant and an isocost line identifies a. The least costly combination of inputs required to produce various levels of output b· The various levelsof output that canbe produced using a given level ofinputs c. The various combinations of inputs that can be used to produce a given level of output The least costly combination of inputs required to produce a given level of output 14. Suppose a firm is using two inputs, labor, and capital. What will happen if the price of labor falls? a. The firm's average cost curve will shift upward The firm's marginal cost curve will shift downward c. To produce the same level of output, the firm would need more capital d. The firm's total cost of production will increase 15. Which of the following correctly explains increasing returns to scale? With small scale operations, management inefficiencies are avoided Increasing the number of workers in a factory allows division and specialization of c. d. labor Firms that operate in small industries have higher input procurement costs Communication channels in large organizations tend to be complex The marginal cost curve intersects the average variable cost curve at 1000 units per day The rate of output at which average total costs are minimized is 16. a. 1000 units c. d. More than 1000 units Less than 1000 units None of the above. More information is needed 17. A perfectly competitive firm faces a horizontal demand curve, which implies that Price never changes The firm cannot affect price by any action it takes The output rate of the firm is indeterminate The firm makes zero profits a. b. 18. The supply curve of a competitive firm in the short run is its Marginal cost curve Marginal cost curve above the minimum of average variable cost Marginal cost curve above the minimum of average total cost None of the above c. d. 19. The term increasing-cost industry is used to describe A firm with a rising average cost curve An industry subject to decreasing returns to scale a. c.) An industry with a rising marginal cost curve An industry in which the prices of one or more inputs are bid up as output expands

Explanation / Answer

13. d) The least costly combination of inputs required to produce a given level of output.

14. b) The firm's marginal cost curve will shift downward.

15. b) Increasing the number of workers in a factory allows division and specilization of labor.

16. b) More than 1000 units

MC curve cuts AVC at its minimum. As ATC curve lies above AVC, so MC cuts ATC above 1000 units.

17. b) The firm cannot affect price by any action it takes

Perfect Competition is a form of market structure in which there is free entry and exit of firms and firms are selling homogeneous and identical products in the market. Firms under this form of market are price takers rather than price makers. Industry determines the equilibrium price from the demand and supply curve intersection. Sellers can sell any unit of commodity at that price and firms does not have any price control over the commodity. If one seller try to charge higher price then it will lose all his customers because all firms are selling similar products in every respect like color, shape, brand, etc.

18. a) MC curve

19. b) An industry subject to decreasing returns to scale.

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