4. Using a marginal cost (MC)-average cost (AC) graph show the three relationships discussed in class...

Question

Question

4. Using a marginal cost (MC)-average cost (AC) graph show the three relationships discussed in class about the relationship

Answer 1

Answer #1

Ans. 4. a) When MC is greater than AC, AC rises.

b) When MC is less than AC, AC falls.

c) When MC is equal to AC, AC is at its minimum level.

Cest ($) MC AC b P(Units) when MC is greater than Ac, AC rises . when MC i less than AC, o Ac falls. me when MC is equal to A

Answer 2

Similar Homework Help Questions

c) TC() -40q+ 200 Marginal cost MC Average cost AC- Returns to scale Marginal cost: MC-...

c) TC() -40q+ 200 Marginal cost MC Average cost AC- Returns to scale Marginal cost: MC- Average cost: Returns to scale: Name: ECP 4413-Government& Business Spring 2019 Problem Set 1 Due start of class on Tuesday, Jan 22 Please print this out and put your answers here. Showing your work may get you partial credit for incorrect answers. I will not grade work tumed in on anything else. If you must miss class and cannot drop off your answers, email...
If Marginal Cost (MC) is higher than Average Cost (AC), average cost is a. falling b....

If Marginal Cost (MC) is higher than Average Cost (AC), average cost is a. falling b. rising c. constant d. none of the above
Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also...

Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also referred to as average cost), MC is marginal cost, and AVC is average variable cost. Please classify each of the graphs as valid or invalid based on what you know about the relationships between these curves. Valid Invalid Answer Bank Graph A Graph F Graph E MC MC MC AVC AVC Cost Cost ATC ATC ATC AVC Output Output Output Graph C Graph D...

What is the three-part relationship that exists between the marginal cost (MC) and average total cost...

What is the three-part relationship that exists between the marginal cost (MC) and average total cost (ATC)?
Question 1. Cost concepts The concepts of "marginal cost" (MC) and "average cost" (AC) are routinely...

Question 1. Cost concepts The concepts of "marginal cost" (MC) and "average cost" (AC) are routinely used in economics. (a) Suppose the total cost function is C(q) = 9+0.250, where is the output level of the firm. Derive the marginal cost and the average cost implied by this cost function. Provide a diagram (with q on the horizontal axis) to illustrate the shape of these MC and AC functions. (b) What does returns to scale mean? Does a firm with...
Hero Consider the graph of demand (D), average total cost (ATC), marginal revenue (MR), and marginal cost (MC) for...

Hero Consider the graph of demand (D), average total cost (ATC), marginal revenue (MR), and marginal cost (MC) for a monopolistic firm. Assume no regulation is in place. Place box A on the graph to represent the profit or loss for the firm before regulation b. Now assume marginal cost pricing is imposed. Place box B on the graph to represent the profit or loss for the firm after marginal cost pricing is imposed. 678910111213141510 12 18 19 20 Market...

Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also...

Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also referred to as average cost), MC is marginal cost, and AVC is average variable cost. Please classify each of the graphs as valid or invalid based on what you know about the relationships between these curves. Valid Invalid Graph D Output Graph E Graph Graph AVC Output Output
6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal...

6. Suppose you are given the average cost function, AC=2Q+5+ 30/Q. Using calculus, determine the marginal cost associated with this function. Determine the value of the firm's marginal cost when Q=50. Graph the MC function with MC on the vertical axis and Q on the horizontal.
A monopolist with constant average and marginal cost equal to 10 (AC = MC = 10)...

A monopolist with constant average and marginal cost equal to 10 (AC = MC = 10) faces demand Q = 100 - 2P, implying that its marginal revenue is MR = 100 - 4Q. Its profit maximizing quantity is Group of answer choices 22.5 45 90 80

In the graph above, MC is the firm's marginal cost curve, ATC is the firm's average...

In the graph above, MC is the firm's marginal cost curve, ATC is the firm's average total cost curve, and AVC is the firm's average variable cost curve. If the firm faces a price greater than P2, then the firm will stay open in both the short and the long run. the firm will stay open in the short run, but close in the long run. the firm will close in both the short and the long run. Ате 12...