6. A production f anctiee is a relationship between a inputs and d. inputs and p

Question

6. A production f anctiee is a relationship between a inputs and d. inputs and profit 17. Aversge total cost is squal to csotal quantity of eutpu. total fixed cost d. total cost/output The cost of 18. producing anabitinaluna ofoutput is O.fnn's ariable cost d. average variable cost 19. When marginal cost exceeds average total cost, a average fixed cost must be rising b. average total cost must be rising e. average total cost must be falling d. marginal cost must be falling. Economies of scale occur wben a. long-run average total costs rise as cutput increases 20. long-run average total costs rise as cutput increases b. _ long-ran average total costs fall as output increases. c. average fixed costs are falling d. average fixed costs are constant Diseconomies of scale occur when a. -21. average fixed costs are falling. average fixed costs are constant. long-run average total costs rise as output increases. b. c. long-run average total costs fall as output increases. In a competitive market, d. 22. no single buyer or seller can influence the price of the produet a. there is a small number of sellers. b. c. the goods offered by the different sellers are markedly different. d. All of the above are correct The short-run supply curve for a firm in a perfectly competitive market is a. likely to be horizontal. b. likely to slope downward 23. c. determined by forces external to the firm d. its marginal cost curve (above average variable cost).

Explanation / Answer

The correct choice for question number 16 is option A. Production function exhibits of functional relationship between output produced by a particular firm and input used in the production of that are output.

Correct choice for question number 17 is option d D. Average total cost is per unit cost which can be found by dividing the total cost with the level of output.

The correct choice for question number 18 is option A. It is the marginal cost which measures the addition to the total cost when one more unit of an output is produced.

Correct choice for question number 19 is option B. Whenever a marginal cost is greater than average total cost average total cost Rises and whenever the marginal cost is less than the others total cost average total cost Falls.

Question number 20 has correct choice option B. When the long run average total cost is starts falling as the firm increases the level of output, it is able to experience economies of scale.

Thecorrect choice for question number 21 is options C. Opposite to the case of economies of scale there are diseconomies of scale when the long run average total cost prices when output is increasing.

Question number 22 is correct choice option A because a competitive market is a market where no single buyer or seller can have any influence on the market price because Market price is determined by the forces of demand and supply.

For the last question the correct choice is option d. Marginal cost is the supply curve of the form and that begins after the minimum of average variable cost is the achieved.

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