The following table shows the relationship between output and costs for two firms in the short run. Which of the following is correct?
A)B has lower fixed costs than A.
B)A has higher per-unit costs than B at an output level of 1.
C)A has greater marginal costs than B at each level of output.
D)B starts experiencing diminishing marginal returns with the second unit of output.

Question

The following table shows the relationship between output and costs for two firms in the short run.  Which of the following is correct?
A)B has lower fixed costs than A. 
B)A has higher per-unit costs than B at an output level of 1. 
C)A has greater marginal costs than B at each level of output. 
D)B starts experiencing diminishing marginal returns with the second unit of output.

Quizplus · Accepted Answer

The Answer of The following table shows the relationship between output and costs for two firms in the short run.  Which of the following is correct?
A)B has lower fixed costs than A. 
B)A has higher per-unit costs than B at an output level of 1. 
C)A has greater marginal costs than B at each level of output. 
D)B starts experiencing diminishing marginal returns with the second unit of output.

The Following Table Shows the Relationship Between Output and Costs