QUESTION 19 Assume short-run production. Select the statements that are true. O The marginal cost at a particular output level is the slope of a line from the origin to the corresponding point on the cost curve. Changes in fixed costs do not affect the shape or placement of the total cost curve. The average cost curve is everywhere above the average variable cost curve. The difference between the total cost and the total variable cost is a constant. 000000 The marginal cost is the slope of the total cost curve or the total variable cost curve.. The "law of diminishing marginal returns" could also be termed the "law of increasing marginal costs" When total cost or total variable cost is increasing, there are increasing marginal returns to the variable input.
QUESTION 19 Assume short-run production. Select the statements that are true. O The marginal cost at a particular output level is the slope of a line from the origin to the corresponding point on the cost curve. Changes in fixed costs do not affect the shape or placement of the total cost curve. The average cost curve is everywhere above the average variable cost curve. The difference between the total cost and the total variable cost is a constant. 000000 The marginal cost is the slope of the total cost curve or the total variable cost curve.. The "law of diminishing marginal returns" could also be termed the "law of increasing marginal costs" When total cost or total variable cost is increasing, there are increasing marginal returns to the variable input.
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
Related questions
Question
Transcribed Image Text:QUESTION 19
Assume short-run production. Select the statements that are true.
O The marginal cost at a particular output level is the slope of a line from the origin to the corresponding
point on the cost curve.
Changes in fixed costs do not affect the shape or placement of the total cost curve.
The average cost curve is everywhere above the average variable cost curve.
The difference between the total cost and the total variable cost is a constant.
00000
The marginal cost is the slope of the total cost curve or the total variable cost curve...
The "law of diminishing marginal returns" could also be termed the "law of increasing marginal costs"
When total cost or total variable cost is increasing, there are increasing marginal returns to the variable
input.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning