Question 37 text Assume that in the short run a firm is producing 100 units of output.........?

1.) Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and average variable costs of $150. The firm's total fixed costs are:


A. $5,000.


B. $500.


C. $.50.


D. $50.





2.) Diseconomies of scale arise primarily because:





A. the short-run average total cost curve rises when marginal product is increasing.





B. of the difficulties involved in managing and coordinating a large business enterprise.





C. firms must be large both absolutely and relative to the market to employ the most efficient productive techniques available.





D. beyond some point marginal product declines as additional units of a variable resource (labor) are added to a fixed resource (capital).

Question 37 text Assume that in the short run a firm is producing 100 units of output.........?
1) A


5000 = 50*100





2) D


labor becomes less efficient as you add more and more of it.