why does the AVC curve eventually slope up?
why does the AVC curve eventually slope up?
Homework Answers
AVC= variable cost/ quantity produced
Diminishing marginal returns states that increase in output falls as more of variable input is hired. This means the cost of increasing output starts increasing after a certain level because more number of variable unit is needed to increase the output by same proportion. This increased need of variable input increases variable cost greater than the increase in quantity. This makes AVC slope upward eventually.
3. Why does LM curve slope upwards ? 4. Why does IS curve slope downward ?
3. Why does LM curve slope upwards ? 4. Why does IS curve slope downward ?
Exercise 4. The slope of the AS curve. a) Why does the AS curve slope upward?...
Exercise 4. The slope of the AS curve. a) Why does the AS curve slope upward? b) If the AS curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to a)? aggregate supply shocks (shocks to 5)? sloped? c) If the curve were more steeply sloped, how would the economy respond differently to d) What kind of economic changes in the economy would lead the curve to be more steeply
The following graph shows the average total cost (ATC) curve, average variable cost (AVC) curve, and...
The following graph shows the average total cost (ATC) curve, average variable cost (AVC) curve, and average fixed cost (AFC) curve for Eleanor's Pizza Parlor when the retail price Eleanor pays for pizza sauce, including sales tax, is $15 per gallon. ATC AVC OUTPUT (Pizzas per day) Suppose the sales tax on pizza sauce is removed, so the price of pizza sauce decreases to $14 per gallon. In the following table, indicate how each cost and curve is affected, if...
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices...
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices of the goods and services firms sell rise more rapidly than the prices they pay for inputs. O B. An increase in market prices results in an increase in quantities supplied, as stated by the law of supply. O C. As the number of workers, machinery, and equipment increase, and technological changes occurs, quantity supplied increases. O D. All of the above cause the...
The slope of a voltage vs. current curve is resistance. Does a small slope correspond to...
The slope of a voltage vs. current curve is resistance. Does a small slope correspond to a large or a small resistance? Explain briefly.
According to the class, why does the AD curve have a negative slope? a) When P...
According to the class, why does the AD curve have a negative slope? a) When P rises, people substitute away from more expensive goods and services so AD decreases b) When P rises, the purchasing power of income falls so AD decreases c) When P rises, G decreases which means AD decreases d) When P rises, the supply of money shifts left so r falls so AD decreases e) Because your instructor says so
2. Show graphically and explain why a firm with u-shaped AVC cost curve will produce when...
2. Show graphically and explain why a firm with u-shaped AVC cost curve will produce when APL >MPL.
Show mathematically that the MC curve intersects the AVC curve and the AC curve at the minimum point. MC=2/3y AVC=y/3 AC...
Show mathematically that the MC curve intersects the AVC curve and the AC curve at the minimum point. MC=2/3y AVC=y/3 AC=y/3+6/y
Does industry supply curve slope upward in the long run? explain.
Does industry supply curve slope upward in the long run? explain.
how does an expansionary monetary policy influence the slope of yield curve
how does an expansionary monetary policy influence the slope of yield curve
Exercise 4. The slope of the AS curve. a) Why does the AS curve slope upward? b) If the AS curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to a)? aggregate supply shocks (shocks to 5)? sloped? c) If the curve were more steeply sloped, how would the economy respond differently to d) What kind of economic changes in the economy would lead the curve to be more steeply
The following graph shows the average total cost (ATC) curve, average variable cost (AVC) curve, and average fixed cost (AFC) curve for Eleanor's Pizza Parlor when the retail price Eleanor pays for pizza sauce, including sales tax, is $15 per gallon. ATC AVC OUTPUT (Pizzas per day) Suppose the sales tax on pizza sauce is removed, so the price of pizza sauce decreases to $14 per gallon. In the following table, indicate how each cost and curve is affected, if...
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices of the goods and services firms sell rise more rapidly than the prices they pay for inputs. O B. An increase in market prices results in an increase in quantities supplied, as stated by the law of supply. O C. As the number of workers, machinery, and equipment increase, and technological changes occurs, quantity supplied increases. O D. All of the above cause the...
2. Show graphically and explain why a firm with u-shaped AVC cost curve will produce when APL >MPL.
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