15. What helps determine the reverse-S shape of the variable cost curve? A. s-sh

Question

15. What helps determine the reverse-S shape of the variable cost curve? A. s-shaped production function B. Decreasing marginal output from over-crowding and need for managers. ° C. Increasing marginal output from specialization and division of labor D. All answers a., b., & c. 16. Where do perfect and monopolistic competitors, oligopolists, and monopolists ALWAYS maximize profits or minimize losses? A. Where MR MC plus where MC (the point slope) is increasing with increasing output away from this point where MR= MC. B. Where TR-TC. C. Where MR MC plus where TC (total cost) is less than TR (total revenue). D. Where MR (marginal revenue) - MC (marginal cost

Explanation / Answer

15) The correct option is A because the S-shaped production function indicates that total product first increases at an increasing rate and then increases at a decreasing rate. This result in reverse-S shaped total cost curve which implies that total cost first increases at a decreasing rate then increases at a increasing rate.

16) The correct option is D, because under all market structure profit is maximized where MR = MC. Also for perfect competition Price = MR.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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