A Firm Faces Competitive Markets Both for Its Inputs and Its

question 11

True/False

A firm faces competitive markets both for its inputs and its outputs.If its long-run supply curve is q = 3p,then it cannot have constant returns to scale.

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Definitions:

Total Product

The overall quantity of output that a firm produces, typically within a specific time period, given a certain amount of inputs.

Total Product

The total quantity of output produced by a firm over a given period of time.

Units of Labor

Quantifiable measurements of labor force input, such as hours worked or number of workers, used in economic analysis to assess productivity or costs.

Diminishing Returns

A principle stating that as additional units of a variable resource are added to a fixed resource, the marginal product of the variable resource will eventually decrease.