Suppose That a Firm's Output Increases from 400 to 500

question 94

Essay

Suppose that a firm's output increases from 400 to 500 units and its total cost increases from $80,000 to $95,000,and if the price of inputs and technology remain unchanged,is the firm operating in the downward sloping or upward sloping part of the long-run average cost curve?

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Definitions:

Voidable

A term referring to a valid agreement that may be legally declared invalid by one of the parties.

Mutual Mistake

A misunderstanding shared by all parties to a contract, causing a fundamental misbelief about a vital fact of the agreement.

Duress

The use of force, pressure, or threats to compel someone to act against their will or better judgment in concluding a contract or performing an act.

Improper Threats

Coercive actions or statements intending to force someone into an agreement or decision against their will, often considered unlawful.