AP Microeconomics Production Costs

According to the graph, increasing returns occur from

The following graph illustrates: The Law of Increasing Costs, The Law of Demand, Circular Flow Diagram of  Mixed Economy, The Marginal Product of Labor

What reason allows increasing returns to occur with production as one assess the labor factor only? Options: increasing costs, worker specialization, underutilization, fixed resources

Cameron opens up a hot chocolate stand for two hours. He spends $10 for ingredients and sells $60 worth of tasty beverages. In the same two hours, he could have provided Uber services (illegally because he isn't 18) and earned $40. Camerons accounting profit is ____ and an economic profit of ____.

Which description fits the total-cost curve when the marginal product of labor diminishes? Options: They are linear., The slope increases as output increases., The slope decreases as input increases., The curve is a parabolic inverse "u" that contains a peak.

Which description fits the fixed cost curve when the marginal product of labor diminishes? Options: It is linear., The slope increases as output increases., The slope decreases as input increases., The curve is a parabolic inverse "u" that contains a peak.

The marginal cost curve typically does which of the following? Options: Increases at a fixed rate., Decreases and eventually increases., Decreases at a decreasing rate., Increases and eventually decreases.

Shutdown of a firm occurs when _______ is _______ price in the short run.

Which output level would be the efficient scale? Options: Qo, Q1, Q2, Q3

Which output level would MC be equal to MR and MR equal to lowest minimal cost? Options: Qo, Q1, Q2, Q3