ECO 550 FINAL EXAM PART 1

Question 1 Evidence from empirical studies of long-run cost-output relationships lends support to the: existence of a non-linear cubic total cost function hypothesis that marginal costs first decrease, then gradually increase over the normal operating range of the firm hypothesis that total costs increase quadratically over the ranges of output examined hypothesis that total costs increase linearly over some considerable range of output examined Question 2 Theoretically, in a long-run cost funct...

Question 1 Evidence from empirical studies of long-run cost-output relationships lends support to the: existence of a non-linear cubic total cost function hypothesis that marginal costs first decrease, then gradually increase over the normal operating range of the firm hypothesis that total costs increase quadratically over the ranges of output examined hypothesis that total costs increase linearly over some considerable range of output examined Question 2 Theoretically, in a long-run cost funct...

Question 1 Evidence from empirical studies of long-run cost-output relationships lends support to the: existence of a non-linear cubic total cost function hypothesis that marginal costs first decrease, then gradually increase over the normal operating range of the firm hypothesis that total costs increase quadratically over the ranges of output examined hypothesis that total costs increase linearly over some considerable range of output examined Question 2 Theoretically, in a long-run cost funct...