Answer to Question #4741 in Microeconomics for Jim

Question

Description :#1.)Table 13-14 Listed in the table are the long-run total costs for three different firms.
Quantity 1 2 3 4 5
Firm A 100 100 100 100 100
Firm B 100 200 300 400 500
Firm C 100 300 600 1,000 1,500

Refer to Table 13-14. Which firm is experiencing diseconomies of scale? Answer Firm A only Firm B only Firm C only Firm A and Firm B only

#2.) Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information, what is the total cost of production when the firm hires 7 workers? Answer $66 $76 $906 $946