Econ 112 Take-Home Quiz 3 capital, is 10 acres of land and a tractor, which have

Question

Econ 112 Take-Home Quiz 3 capital, is 10 acres of land and a tractor, which have a combined cost of $150 per day. The cost of labor is $100 per worker per day The total cost of producing 25 bushels of soybeans is: A) S50 B) $100 C) $150 D) S250 9. When a cherry orchard in Oregon adds a worker, the total cost of production increases by $24,000. Adding the worker increases total cherry output by 600 pounds. Therefore, the marginal cost of the last pound of cherries produced is: A. $19. B. $4,000. C. $24,000. D. $40 10. The larger the output, the greater the quantity of output over which fixed cost is spread. Called the to a A) spreading; lower average fixed cost. B) spreading: higher average fixed cost. C) diminishing retums; lower average variable cost D) diminishing retums; higher average variable cost. effect, this leads 11. Which of the following is true for firms operating under perfect competition? A. There are significant barriers to entry B. There is a very high fixed cost, which reduces the number of firms in the industry They must accept the market price, regardless of their output level They can earn economic profit in the long run C. D. [ Figure #1-Perfectly Competitive Industry

Explanation / Answer

9.D) Marginal Cost = change in total cost/ change in output
= 24000/600
= 40

10.A) the larger the output, the greater the quantity of output over which fixed cost is spread called the spreading effect, this leads to lower average variable cost

11.C) under perfect competition, they must accept the market price, regardless of their output level. because firms are price taker under perfect competition.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.