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When Average Total Cost Rises If a Producer Either Increases

question 133

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When average total cost rises if a producer either increases or decreases production, then the firm is said to be operating at efficient scale.


Definitions:

Value Of Marginal Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Wage Rate

The amount of money paid to an employee per unit of time, such as hourly, daily, or annually.

Wage Rate

The amount of compensation a worker receives per unit of time or per task completed.

Competitive Labor Market

A market scenario where numerous firms compete to hire the same labor, and workers compete for the same jobs, often leading to wage equilibrium.

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