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When average total cost is at it's minimum, marginal cost curve intersects the average total cost. When marginal cost is less than average total cost, average total cost starts falling. Eventually, MC rises and gets equal to the ATC . At this point, marginal cost curve cuts the average cost curve.
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The average total cost curve is U-shaped. At the quantity of output where average total cost...
Suppose a firm's average total cost curve is decreasing with output. What can be said of...
Suppose a firm's average total cost curve is decreasing with output. What can be said of its marginal cost curve? The firm's marginal cost curve must be A. intersecting the average total cost curve. B. increasing with output. C. below the average total cost curve. D. decreasing with output. E. horizontal.
QUESTION 43 i5) shaped The Marginal cost curve usually cuts through the minimum of the average...
QUESTION 43 i5) shaped The Marginal cost curve usually cuts through the minimum of the average total cost curve. cuts through the minimum of the average variable cost curve. all of the options are correct. QUESTION 44 The Total Cost Function in the book is an up-ward sloping straight line. is U-shaped is shaped as an upside down U. begins by sharply rising, flattens out, then sharply rises again!
If a firm has a U-Shaped long-run average cost curve, a
If a firm has a U-Shaped long-run average cost curve, a.) its fixed cost rises as output rises. b.) it must have increasing returns to scale at low levels or production and decreasing returns to scale at high levels of production. C.) it must have increasing returns to each input at low levels of production and decreasing returns to each input at high levels of production. D.) the firm can maximize its output by operating at the point of minimum...
11) For a firm with some positive fixed costs, the average total cost is U-shaped, decreasing...
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...
Shutdown Price We have the following information for a competitive fim: Quantity Vaiable Cost Fixed Cost...
Shutdown Price We have the following information for a competitive fim: Quantity Vaiable Cost Fixed Cost 14 18 21 25 10 10 10 10 Part A: What is the marginal cost at each quantity supplied? (The variable cost in the table above is the total variable cost. The marginal cost is the difference in total variable cost between N and N-1 units. Note that the marginal cost curve is U-shaped: It is high at Q 1 andQ 8, and it...
(Figure: Average Total Cost and Quantity of Output IIT) Which of the following statements is (are)...
(Figure: Average Total Cost and Quantity of Output IIT) Which of the following statements is (are) TRUE? Average total cost (5) Slope 1.25 6 7 8 9 10 Quantity of output L. ALO3, the marginal cost is $2.33 II. At Q = 8, the marginal cost is $1.80. III. The slope of the total cost (TC) curve at 3 is $2.33 OL II and III I and III On
Question 1 In the short run, as output increases, the difference between average total cost and...
Question 1 In the short run, as output increases, the difference between average total cost and average variable cost decreases. the difference between total cost and average variable cost decreases marginal cost eventually decreases. All of the above are correct. Question 2 The marginal cost curve intersects the at its minimum average variable cost curve average total cost curve average fixed cost curve A and B are both correct. Question 3 Refer to the short-run information provided in Figure 8.5...
3.1 A marginal cost curve may be U-shaped. As a result, the MC curve may hit the firm's demand curve or price line at two output levels. Which is the profit maximizing output? Why?
marginal cost curve may be U-shaped. As a result, the MC curve may hit the firm's demand curve or price line at two output levels. Which is the profit maximizing output? Why
37. At what level of output will average variable cost equal average total cost? a. when...
37. At what level of output will average variable cost equal average total cost? a. when marginal cost equals average variable cost b. when marginal cost equals average total cost c. for all levels of output in which average variable cost is falling d. There is no level of output where this occurs, as long as foxed costs are positive. Figure 16-11 rice 50 MC 45 + ATC 40 35+ 30 25 20 15 + 10 MR 10 20 30...
Figure 13-2 The figure depicts a total cost function for a firm that produces cookies. Total Cost Quantity of Output (#...
Figure 13-2 The figure depicts a total cost function for a firm that produces cookies. Total Cost Quantity of Output (# of cookies) Refer to Figure 13-2. What does the changing slope of the total-cost curve reflect? decreasing average variable cost decreasing average total cost decreasing marginal product O decreasing marginal cost The figure depicts a total cost function for a firm that produces cookies. Total Cost Quantity of Output (# of cookies) Refer to Figure 13-2. What is the...
QUESTION 43 i5) shaped The Marginal cost curve usually cuts through the minimum of the average total cost curve. cuts through the minimum of the average variable cost curve. all of the options are correct. QUESTION 44 The Total Cost Function in the book is an up-ward sloping straight line. is U-shaped is shaped as an upside down U. begins by sharply rising, flattens out, then sharply rises again!
Shutdown Price We have the following information for a competitive fim: Quantity Vaiable Cost Fixed Cost 14 18 21 25 10 10 10 10 Part A: What is the marginal cost at each quantity supplied? (The variable cost in the table above is the total variable cost. The marginal cost is the difference in total variable cost between N and N-1 units. Note that the marginal cost curve is U-shaped: It is high at Q 1 andQ 8, and it...
(Figure: Average Total Cost and Quantity of Output IIT) Which of the following statements is (are) TRUE? Average total cost (5) Slope 1.25 6 7 8 9 10 Quantity of output L. ALO3, the marginal cost is $2.33 II. At Q = 8, the marginal cost is $1.80. III. The slope of the total cost (TC) curve at 3 is $2.33 OL II and III I and III On
Question 1 In the short run, as output increases, the difference between average total cost and average variable cost decreases. the difference between total cost and average variable cost decreases marginal cost eventually decreases. All of the above are correct. Question 2 The marginal cost curve intersects the at its minimum average variable cost curve average total cost curve average fixed cost curve A and B are both correct. Question 3 Refer to the short-run information provided in Figure 8.5...
37. At what level of output will average variable cost equal average total cost? a. when marginal cost equals average variable cost b. when marginal cost equals average total cost c. for all levels of output in which average variable cost is falling d. There is no level of output where this occurs, as long as foxed costs are positive. Figure 16-11 rice 50 MC 45 + ATC 40 35+ 30 25 20 15 + 10 MR 10 20 30...
Figure 13-2 The figure depicts a total cost function for a firm that produces cookies. Total Cost Quantity of Output (# of cookies) Refer to Figure 13-2. What does the changing slope of the total-cost curve reflect? decreasing average variable cost decreasing average total cost decreasing marginal product O decreasing marginal cost The figure depicts a total cost function for a firm that produces cookies. Total Cost Quantity of Output (# of cookies) Refer to Figure 13-2. What is the...
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