Suppose a Firm's Total Cost Curve Can Be Written TC(Q)

question 35

Multiple Choice

Suppose a firm's total cost curve can be written TC(Q) = Q - .5Q² + Q³, with marginal cost MC(Q) = 1 - Q + 3Q². This cost function exhibits:

• A) economies of scale
• B) diseconomies of scale
• C) neither diseconomies nor economies of scale.
• D) economies of scale for output levels less than some level, Q₁ = 1/4, and diseconomies of scale thereafter.

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The tally of unemployed workers in the labor force who are in the process of actively looking for jobs.

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A system of production, distribution, and consumption of goods and services within a certain area or country, guided by laws, regulations, and cultural customs.

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The condition of having paid work or the number of people currently hired to perform tasks in various sectors.