Question

true or false?

22) By definition, in the typical firm's short-run production function all inputs are fixed in amount.

Answer:

23) The law of diminishing returns is a result of the fact that more and more units of a variable input are being added to a fixed input. Because of the limitations imposed by the fixed input, at some point the productivity of additional units of the variable input must decline.

Answer:

24) So long as marginal cost is greater than average variable cost, both average variable cost and average total cost must increase as output is increased.

Answer:

25) Empirical evidence indicates that most firms operate where marginal and average variable costs are constant.

Answer:

Answer 1

Q22.
FALSE
In short run some fo the factors are fixed not all.
Q23.
TRUE
In diminshing returns, the variable factors combined with fixed factors does not able to bring the desired productivity due to unfavorable change in ratio of fixed to variable factors
Q24.
TRUE
The Average cost tend to rise with the rise in marginal cost when the marginal cost is greater than Average cost
Q25.
FALSE
The production will be till the point where the marginal cost is equal to marginal revenue and marginalcost will be rising