Table 5.3Table 5.3Total OutputTotal Cost  0  2  4  6  810$100$196$212$310$430$570Refer to Table 5.3. If the production of 2 extra units (units 11 and 12) increases total cost by $162, then the

If adding a seventh worker to the crew in a fast-food restaurant results in fewer additional meals being prepared than when the sixth worker was added, the law of diminishing marginal returns has set in.

Figure 5.1Refer to Figure 5.1. At a quantity of 10, the firm should ____, but at a quantity of 75, the firm should ____.

When economic profit is zero, only normal profit is earned.

Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm’s total fixed cost is $600 and its total variable cost is $400. If the price of the product is $10 per unit and the firm produces 100 units, the firm will earn an economic profit of

Marginal cost and average total cost curves in the short run are similar in that they are U-shaped.

Which of the following may be fixed in the short run?

Assume that a firm is producing an output level such that marginal revenue equals marginal cost. One can correctly conclude that the firm is earning a normal profit.

Figure 5.2Refer to Figure 5.2. If the firm is producing Q3 units of output, we know that the firm

The MC = MR rule is widely known in the company’s management, and written in the operations manuals.