C(q)=500 Average total cost converges to what value as quantity increases?
C(q) = 500
Average total cost = C(q)/q = 500/q
As q becomes higher and higher (say tends to infinity), average total cost tends to 0 and therefore it converges to 0.
C(q)=500 Average total cost converges to what value as quantity increases?
Exhibit 22-13 Quantity of Output (Q) Total Fixed Cost (TFC) Average Fixed Cost (AFC) Total Variable Cost (TVC) Average Variable Cost (AVC) Total Cost (TC) Average Total Cost (ATC) Marginal Cost (MC) 0 $200 $0 $200 1 $200 (A) 30 (H) 230 (M) (S) 2 $200 (B) 50 (I) 250 (N) (T) 3 $200 (C) (F) $26.67 (K) (P) (U) 4 $200 (D) 130 (J) 330 (Q) (V) 5 $200 (E) (G) $40 (L) (R) (W) Refer to Exhibit 22-13. What...
1. Exhibit 22-13 Quantity of Output (Q) Total Fixed Cost (TFC) Average Fixed Cost (AFC) Total Variable Cost (TVC) Average Variable Cost (AVC) Total Cost (TC) Average Total Cost (ATC) Marginal Cost (MC) 0 $200 $0 $200 1 $200 (A) 30 (H) 230 (M) (S) 2 $200 (B) 50 (I) 250 (N) (T) 3 $200 (C) (F) $26.67 (K) (P) (U) 4 $200 (D) 130 (J) 330 (Q) (V) 5 $200 (E) (G) $40 (L) (R) (W) Refer to Exhibit...
4. The average cost of producing q units of a good is the total cost of production C(q), divided by the total production q: AC(q) calculus by MC(g) = C"(a) = . Ca for q> 0 The marginal cost MC is given in terms of G dThe fired cost of production is C(0). Why is C(0) called the fized cost? What does it represent? a. b. If C(g) is continuous for q 2 0 and C(0)> 0, what is lim...
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...
AGE MINDTAP Q Search thi 45 Table 13-14 Quantity Fixed Average Total Average Fixed Cost Average Variable Cost Variable Cost $23 Total Cost $33 Output Marginal Cost Cost Cost $38 o 3 $60 o $54 o $80 o $88 o $113 o o Refer to Table 13-14. What is the average total cost of producing 6 units of output? a $19.67 1000 b. 520.00 $16.33 d. 21.86 MacBook Air
(10) Total cost increases from £500 to £600 when output increases from 20 to 30 units. Fixed costs are £200. Which of the following is true? A. Marginal cost is equal to fixed cost B. Average cost falls C. Variable cost rises by £200 D. Fixed costs rise
Question 01. Consider the cost function C = 5,000 + 50. Q, where C denotes the total cost, and Q denotes the quantity produced. A. Complete the following table: (Hint: MC = AC/AQ) Quantity | Cost Fixed Cost Total Cost Average | Marginal Total Cost Cost 10 20 50 100 1000 B. Using the above table, plot average total cost and marginal cost. Cost Quantity C. Explain how you know that this firm has increasing returns to scale.
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...
7. (+1) The cost C(Q) of producing a quantity Q of widgets to satisfy demand is C() 4000+20Q, but the quantity demanded is random. If the mean and standard deviation of demand are 500 and 200, respectively, then what are the mean and standard deviation of costs?
A. Q=4
B. Q=8
C. Q=10
D. Q=12
The graph below shows the average total cost and marginal cost curves of a perfectly competitive firm. If the market price is $7, what is the output level that maximizes the firm's profit? 12 11 10 MC ATC 9 8 Price $/Q 4 3 2 0 2 3 4 5 9 10 11 12 دفا 14 15 16 6 7 8 Quantity