Average fixed costs:
A. are perpetually decreasing as output increases, but at a decreasing rate.
B. are perpetually decreasing as output increases, and at an increasing rate.
C. are perpetually increasing as output increases, but at a decreasing rate.
D. are perpetually increasing as output increases, and at an increasing rate.
answer A.)are perpetually decreasing as output increases, but at a decreasing rate
Average fixed cost decreases with additional production. The logic behind this relation is relatively simple. Because fixed cost is fixed and does not change with the quantity of output, a given cost is spread more thinly per unit as quantity increases
Average fixed costs: A. are perpetually decreasing as output increases, but at a decreasing rate. B....
According to the law of diminishing returns a. Production increases at a decreasing rate b. Production increases at a increasing rate c. Production decreases at a decreasing rate d. Production decreases at an increasing rate
‘Increasing capital per labour increases output at a decreasing rate’ refers to the idea of a.economic development. b. diminishing returns. c.accumulation of labour. d.none of the statements above are correct.
11) For a firm with some positive fixed costs, the average total cost is U-shaped, decreasing at first and, after some quantity ?0, increasing. Which of the following must be true? a. Average fixed cost is increasing after ?0 b. The firm’s marginal cost is never higher than the firm’s average variable cost when quantity is greater than ?0 c. The firm’s average variable cost is increasing for quantities greater than ?? d. The firm’s average fixed cost reaches its...
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
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...
13. As output (plant size) increases, economies of scale occur when the A) long-run average cost increases. B) long-run average cost decreases. C) short-run average total cost decreases. D) long-run average cost stays constant 14. Economies of scale can occur as a result of which of the following? A) increasing marginal costs as the firm increases its size B) higher fixed cost as the firm increases its size C) management difficulties as the firm increases its size D) greater specialization...
Total costs in the table are: Select one: a. decreasing at a decreasing rate. b. decreasing at a constant rate. c. increasing at a constant rate. d. increasing at an increasing rate. | M Control variable e 0 Total Benefits B(Q) arginal Benefit MB(Q) Marginal Cost MC(Q) Marginal Net Benefit MNB(Q) 0 900 1,700 100 200 Total Costs C(Q) 0 100 300 600 1,000 1,500 2,100 2,800 B 4,500 5,500 Net Benefits N(Q) 0 800 C 1,800 2,000 2,000 1,800...
If average total costs at 51 units of output are greater than average total costs at 50 units of output, then which of the following is NOT true? Select one: a. average variable costs are increasing at 50 units b. marginal costs are increasing at 50 units c. average fixed costs are increasing at 50 units d. marginal costs are greater than average total costs at 50 units
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...
Show work pretty please.
30. Average total cost a. b. c. d. e. increases as output increases. decreases as output increases. increases if marginal cost is increasing increases if marginal cost is greater than average total cost. both c and d 31. Amonopolist which suffers losses in the short run will continue to operate as long as total revenue covers fixed cost. raise price in order to eliminate losses exit in the long run if there is no plant size...