ECON 1B03 Study Guide - Midterm Guide: Pencil, Marginal Product, Diminishing Returns
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ECON 1B03 Full Course Notes
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Make sure you carefully fill in the bubbles. You must fill in your student number on. The scan sheet or your grade will not be recorded. Hand in both the scan sheet and this test copy. Marginal product must therefore be: constant, increasing, zero, positive, decreasing. Page 3 of 7: when cost curves are drawn for a firm, all of the following are generally assumed. If the price a perfectly competitive firm is facing in the market is. P2, then the profit-maximizing firm in the short run should produce output: b, d, c, e, f. Page 5 of 7: refer to figure 1. Firm a is producing the output level at which average total cost equals marginal cost, both of which are . To maximize profits the firm should: reduce output, expand output, increase the market price, not change output, shut down. ; output = 100 units; atc = ; avc = .
