When All of a Firm's Inputs Are Doubled,input Prices Do

question 312

Multiple Choice

When all of a firm's inputs are doubled,input prices do not change,and this results in the firm's level of production more than doubling,a firm is operating:

• A)on the upward-sloping portion of its long-run average total cost curve.
• B)on the downward-sloping portion of its long-run average total cost curve.
• C)at the minimum of its long-run average total cost curve.
• D)on the upward-sloping portion of its marginal cost curve.

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Definitions:

Demand Curve

A chart that illustrates how the quantity of a product demanded by customers correlates with its price.

Normal Good

A product whose demand increases when people's incomes increase, and falls when incomes decrease, all else being equal.

Olives Price

The market price at which olives are bought and sold, which can vary based on factors such as quality, origin, and market demand.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.