WorksheetsTo online 1 eko
Total questions: 5
Worksheet time: 5mins
Marginal cost is...
The extra cost needed to pay for the extra inputs needed to produce one extra unit
The extra cost needed to pay for the inputs needed to produce a certain number of units
The total cost needed to pay for the extra inputs needed to produce one extra unit
The average cost needed to pay for the extra inputs needed to produce one extra unit
Always increase
Always decrease
First increasing but then decreasing
First decreasing but then increasing
The law of diminishing marginal returns states are...
If the least one input is fixed, as we increase the variable input, we will eventually reach a point where the extra output generated by a one unit increase in variable input starts to get bigger.
If the least one input is fixed, as we increase the variable input, we will eventually reach a point where the total output generated by the variable input starts to get smaller and smaller
If all inputs are variable, as we increase these variable inputs, we will eventually reach a point where the extra output generated by a one unit increase in variable input starts to get smaller and smaller
If the least one input is fixed, as we increase the variable input, we will eventually reach a point where the extra output generated by a one unit increase in variable input starts to get smaller and smaller
The cost function of a firm is given by:
TC(Q) = 1050 + 2Q³ + Q² + 3Q
Therefore the fixed costs are given by...
2Q³ + Q² + 3Q
1050
1050/Q
0
Which of the following statements about profits is correct?
Profit decrease the more a firm sells, because costs are always increasing
Profits increase the more a firm sells, because revenues always increase
None of the these statements is correct
Profits increase the more a firm sells, as long as revenues are also increasing
