A firm's average total costs initially decrease because: A. at low levels of output, average fixed...
A firm's average total costs initially decrease because:
A. at low levels of output, average fixed costs make up a large part of average total costs.
B. at low levels of output, average variable costs make up a large part of average total costs.
C. at low levels of output, average fixed costs make up a small part of average total costs
D. the law of diminishing returns applies as output increases
Homework Answers
Average total cost is the sum of average variable cost and average fixed cost.
In the beginning, both AVC and AFC curves fall. Hence, the ATC curve falls as well.
Next, the AVC curve starts rising, but the AFC curve is still falling. Hence, the ATC curve continues to fall. This is because, during this phase, the fall in the AFC curve is greater than the rise in the AVC curve.
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A firm's average total costs initially decrease because:
A. at low levels of output, average fixed...
1)Which of the following statements is true? A. Average fixed cost equals total fixed cost divided...
1)Which of the following statements is true? A. Average fixed cost equals total fixed cost divided by total output. B. Average total cost always falls as output increases. C. Average fixed cost equals average total cost plus average variable cost. D. Average variable cost is always greater than average fixed cost. 2) As output increases, average fixed cost A. remains constant. B. always decreases. C. decreases, then increases. D. increases, then decreases. 3) Average total cost minus average variable cost...
A decrease in the long-run average total cost as output increases is due to a declining...
A decrease in the long-run average total cost as output increases is due to a declining average fixed cost. economies of scale. externalities. the law of diminishing returns.
Variable costs: A.vary per unit of output as production levels change. B. are fixed in total as production levels change...
Variable costs: A.vary per unit of output as production levels change. B. are fixed in total as production levels change. C. decrease per unit as production volume increases. D. are fixed per unit and vary in total as production levels change.
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average...
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average variable cost e.) Diseconomies of scale f.) Economies of scale 9.) Fixed costs m.) Optimal output rule h.) Law of diminishing marginal productivity n.) Profit i.) Long run 0.) Short run 1.) Marginal cost p.) Total cost k.) Marginal product q.) Total product 1.) Marginal revenue r.) Variable costs 1.) Total revenue minus total cost 2.) The sum of total fixed and total variable...
29) As output increases, average fixed costs A) decrease. B) increase. C) remain constant. D) initially...
29) As output increases, average fixed costs A) decrease. B) increase. C) remain constant. D) initially decrease and then increase. Output (pizzas per hour) Total cost (dollars) WN- 30) Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to A) $35. B) $20. C) $79. D) $85. 31) If 9 workers can produce 1,550 units of output and 10 workers can produce 1.700 units of output, then the marginal...
19. Table 13-16 Quantity Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Aver...
19. Table 13-16 Quantity Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Average Total Cost 0 $24 $16 $50 $108 Refer to Table 13-16. What is the fixed cost of producing units of output? a. $16 b. $24 C. $12 d. $0 20. Refer to Table 13-16 in Question 19. What is the total cost of producing 2 units of output? a $76 b. $74 C. $58 d. $50 21. Refer to Table 13-16 in...
A) When output is 500, a firm's fixed costs are $10,000 and its variable costs are...
A) When output is 500, a firm's fixed costs are $10,000 and its variable costs are $15,000. The firm's total costs are therefore: $ 5,000. $10,000. $15,000. $25,000. B) If fixed costs are $960, variable costs are $1,440, and output is 12, then average total cost equals: $ 80. $100. $120. $200.
4. A firm will begin to experience diminishing returns at the output where marginal A. cost...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
Which of the following statements is (are) correct? (x) The average variable cost curve declines as...
Which of the following statements is (are) correct? (x) The average variable cost curve declines as quantity increases because variable costs always decrease as output increases. (y) The average variable cost curve and average total cost curve will eventually intersect as output increases because average fixed cost eventually becomes negative. (z) The marginal cost curve crosses the average total cost curve at the efficient scale, which occurs at the minimum point on the average total cost curve. A. (x), (y)...
need help with these on my study guide. the graph is on the bottom of the second photo CHA COSTS AND THE SUPPLY OF G...
need help with these on my study
guide. the graph is on the bottom of the second photo
CHA COSTS AND THE SUPPLY OF GOODS foutput, its average fixed cost is 10. If the firm produces 15 units of output, its average b. S. C 6. d. 60. 11. If the firm produces 10 units of output, its total cost is b. 13. c. 70. d. 130. 12. If the firm produces 10 units of output, its total fixed cost...
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average variable cost e.) Diseconomies of scale f.) Economies of scale 9.) Fixed costs m.) Optimal output rule h.) Law of diminishing marginal productivity n.) Profit i.) Long run 0.) Short run 1.) Marginal cost p.) Total cost k.) Marginal product q.) Total product 1.) Marginal revenue r.) Variable costs 1.) Total revenue minus total cost 2.) The sum of total fixed and total variable...
29) As output increases, average fixed costs A) decrease. B) increase. C) remain constant. D) initially decrease and then increase. Output (pizzas per hour) Total cost (dollars) WN- 30) Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to A) $35. B) $20. C) $79. D) $85. 31) If 9 workers can produce 1,550 units of output and 10 workers can produce 1.700 units of output, then the marginal...
19. Table 13-16 Quantity Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Average Total Cost 0 $24 $16 $50 $108 Refer to Table 13-16. What is the fixed cost of producing units of output? a. $16 b. $24 C. $12 d. $0 20. Refer to Table 13-16 in Question 19. What is the total cost of producing 2 units of output? a $76 b. $74 C. $58 d. $50 21. Refer to Table 13-16 in...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
need help with these on my study
guide. the graph is on the bottom of the second photo
CHA COSTS AND THE SUPPLY OF GOODS foutput, its average fixed cost is 10. If the firm produces 15 units of output, its average b. S. C 6. d. 60. 11. If the firm produces 10 units of output, its total cost is b. 13. c. 70. d. 130. 12. If the firm produces 10 units of output, its total fixed cost...
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