Assume that the tuna fishing industry is perfectly competitive. Which of the following best characterizes the industry if, as demand for tuna increases, fishing boats have to go farther into the ocean to harvest tuna?
A) a fixed-cost industry B) a decreasing-cost industry
C) an increasing-cost industry D) a constant-cost industry
C
Economics
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When XYZ Corporation produces 35 units of output its average variable cost is $5 . The marginal cost of the 36th unit of output is $7 . If the firm chooses to produce the 36th unit of output, what will happen to average variable cost? Explain
What will be an ideal response?
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What will be an ideal response?
Economics