Help-Microeconomics?

Question

1.Any production function that is characterized by economies of scale will not be subject to the operation of diminishing returns. True or False

2.Darren runs a barbershop with average fixed costs equal to $60 per day and total output of 50 haircuts per day.What's his weekly total fixed cost if open 6 days per week.

a.$18000

b.$3000

c.$60

d.answer cannot be determined with information available

3.Suppose the marginal cost curve in the short run first decreses,then reaches a minimum,and then increases.If we are at an output where marginal cost is decreasing, than:

a.marginal product must be increasing

b.average variable cost must be decreasing

c.average total cost must be increasing

d.both a and b are correct

4.At the optimal consumption bundle, the marginal utility of each good purchased is the same. True or False

Answer 1

1:

False. - after certain period DIS-economies of scale effect may emerge.

2:

a.$18000 = 60*50*6

3:

b.average variable cost must be decreasing

(but "a" is false for specific factor-market supply cases)

4:

False, not MU(x)=MU(y) but  MU(x)/P(x)=MU(y)/P(y)

Answer 2

For numbers 2, I think a mistake was made.  Total fixed cost per week would equal fixed cost per day * the amount of days open which would equal $60*6=3600.