Question

QUESTION 13 Every point on the long-run average cost curve is O on a short-run marginal cost curve. also a minimum point on a short-run average cost curve. O on a short-run average total cost curve. O on a short-run average variable cost curve. QUESTION 14 If total costs are $50,000 when 1000 units are produced, and total costs are $50,100 when 1001 units are produced, we can conclude that O average variable costs are $100. o marginal costs are $100. O average fixed costs are $100. O average total costs are $100.

Answer 1

13. On a short-run average total cost curve

Every point on the long run average cost curve will be a tangent point with some short run AC curve. Long run average total cost curve comes from an average total cost short run curve.

14. Marginal Costs are $100

Quantity	Total cost
1000	$50,000
1001	$50,100

Marginal cost = Total cost of (n) – Total cost of (n-1)

Marginal cost = $50,100 - $50,000

Marginal cost = $100