A Firm Uses a Single Variable Input X to Produce

question 40

True/False

A firm uses a single variable input x to produce outputs according to the production function f (x) = 300x 6x2. This firm has fixed costs of $400. This firm's short-run marginal cost curve lies below its short-run average variable cost curve for all positive values of x.

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Definitions:

Average Return

The simple mathematical average of a series of returns generated over a period of time.

NPV Technique

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the net present value of all cash flows associated with it.

Mutually Exclusive

Events or choices that cannot occur or be taken at the same time.

Capital Projects

Large, longer-term investments undertaken by a business or government to create, maintain, or expand its operational capacity.