Question
In: Economics
The Empire is building another Death Star. The inputs are capital, labor, raw materials, and robots....
The Empire is building another Death Star. The inputs are capital, labor, raw materials, and robots. The construction manager increases the input robots and discovers that output actually falls. What does this imply about cost?
| A. |
Cost is strictly increasing. |
|
| B. |
Cost is increasing or constant. |
|
| C. |
Cost is strictly decreasing. |
|
| D. |
Cost is constant. |
Solutions
Expert Solution
When the input's increase, the cost increases per unit as the output falls.
Hence the correct option is
A. Cost is strictly increasing.
This is because the price of per unit of input is fixed.
Rahul Sunny answered 2 years agoRelated Solutions
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Undyed fine wool
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2.
In industries that process joint products, the costs of the raw
materials inputs and the sales values of intermediate and final
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hapter 07: Applying Excel
2
3
Data
4
Exhibit 7-6 Santa Maria Wool Cooperative
5
Cost of wool
$192,000
6
Cost of separation process
$40,000
7
Sales value of intermediate products at split-off point:
8
Undyed coarse wool
$110,000
9
Undyed fine wool...
2. In industries that process joint products, the costs of the raw materials inputs and the...
2. In industries that process joint products, the costs of the
raw materials inputs and the sales values of intermediate and final
products are often volatile. Change the data area of your worksheet
to match the following:
A
B
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
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Exhibit 6-7 Santa Maria Wool
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Cost of wool
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