1. If the marginal product of an input is falling, then what must be true? Average fixed costs must be constant. Marginal cost must be rising. Average total cost must be constant. Marginal cost must be constant. 2. If Captain America and Thor decide to specialize, who should specialize in each good? Captain America should specialize in shields. Thor should specialize in hammers. Thor should specialize in both goods. Captain America should specialize in both goods. Captain America should specialize in hammers. Thor should specialize in shields. 3. Aditya regularly consumes two goods, which we’ll call good X and good Y. One day, the price of good X decreases. As a result, Aditya decreases his consumption of good Y. Based only on this information, goods X and Y seem to be: Substitutes for each other Complements for each other Normal goods Inferior goods

1. If the marginal product of an input is falling, then what must be true? Average fixed costs must be constant. Marginal cost must be rising. Average total cost must be constant. Marginal cost must be constant. 2. If Captain America and Thor decide to specialize, who should specialize in each good? Captain America should specialize in shields. Thor should specialize in hammers. Thor should specialize in both goods. Captain America should specialize in both goods. Captain America should specialize in hammers. Thor should specialize in shields. 3. Aditya regularly consumes two goods, which we’ll call good X and good Y. One day, the price of good X decreases. As a result, Aditya decreases his consumption of good Y. Based only on this information, goods X and Y seem to be: Substitutes for each other Complements for each other Normal goods Inferior goods

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 9WNG

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Question

1. If the marginal product of an input is falling, then what must be true?

Average fixed costs must be constant.

Marginal cost must be rising.

Average total cost must be constant.

Marginal cost must be constant.

2. If Captain America and Thor decide to specialize, who should specialize in each good?

Captain America should specialize in shields. Thor should specialize in hammers.

Thor should specialize in both goods.

Captain America should specialize in both goods.

Captain America should specialize in hammers. Thor should specialize in shields.

3. Aditya regularly consumes two goods, which we’ll call good X and good Y. One day, the price of good X decreases. As a result, Aditya decreases his consumption of good Y. Based only on this information, goods X and Y seem to be:

Substitutes for each other

Complements for each other

Normal goods

Inferior goods

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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