Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna instead holds an oral auction between the two bidders and one bidder of each type shows up, she earn ___ from the auction
a. Just above $100
b. $100
c. Just above $70
d. $70
c
Economics
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Which of the following situations depicts diseconomies of scale?
A) The average total cost of a firm increases from $50 to $55 when it increases its production from 10 units to 20 units. B) The average total cost of a firm decreases from $50 to $40 when it increases its production from 10 units to 20 units. C) The average total cost of a firm remains at $50 when it increases its production from 10 units to 20 units. D) The average total cost of a firm remains at $50 when it decreases its production from 20 units to 10 units.
Economics
If a firm is experiencing diminishing marginal returns, its marginal product is negative
a. True b. False
Economics