“business executives do not perceive the textbook U-shaped marginal cost curve to relevant in many situations”....
“business executives do not perceive the textbook U-shaped marginal cost curve to relevant in many situations”. Drawing on your experiences, do you agree or disagree? Why?
Homework Answers
I agree with the statement that marginal cost will not be U shaped curve in many situations, because in most of the cases fixed cost does not change and variable cost per unit of input such as labor cost is constant. So, marginal cost ( additional cost by employing one additional worker ) is fixed and a horizontal line is created as MC. Further, the other scenarios, the MC decreases only for few units of input, afterwards it increases for each additional unit for longer period of time. So, a downward curve first and then upward curve is created, but these two parts of the curve are not symmetrical. So, it does not form the U shaped curve in practical scenarios.
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“business executives do not perceive the textbook U-shaped
marginal cost curve to relevant in many situations”....
In general, the marginal cost curve is U-shaped as you learned in my lecture and textbook....
In general, the marginal cost curve is U-shaped as you learned in my lecture and textbook. However, the exception exists. Would you please provide at least one particular industry as an example to illustrate that MC is not U-shaped? A reference link (URL) to an article that supports your example will be a plus.
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
In the short run, there are many U-shaped cost curves. Which of the following explains why...
In the short run, there are many U-shaped cost curves. Which of the following explains why the ATC is that way in the short run? It is U-shaped because the minimum efficient scale is achieved. It is U-shaped because the AFC declines as more goods are produced. It is U-shaped because of economies and diseconomies of scale. It is not U-shaped. It is U-shaped because of increasing and decreasing returns. If a firm is experiencing economies of scale, what is...
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!
The average total cost curve is U-shaped. At the quantity of output where average total cost...
The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve, or intersecting the average total cost curve?
Clearly explain the shape of the marginal cost curve. (Don't just say how it's shaped, explain...
Clearly explain the shape of the marginal cost curve. (Don't just say how it's shaped, explain why we model it with that shape.)
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.
3.1 A marginal cost curve may be L-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?
3.1 A marginal cost curve may be L-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?
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...
A. The FCPA has too many exceptions to be an effective deterrent to unethical business practices.”...
A. The FCPA has too many exceptions to be an effective deterrent to unethical business practices.” Do you agree or disagree with this statement? Explain your answer. B. What issues prompted the revision of the Federal Sentencing Guidelines for Organizations in 2004?
In the short run, there are many U-shaped cost curves. Which of the following explains why the ATC is that way in the short run? It is U-shaped because the minimum efficient scale is achieved. It is U-shaped because the AFC declines as more goods are produced. It is U-shaped because of economies and diseconomies of scale. It is not U-shaped. It is U-shaped because of increasing and decreasing returns. If a firm is experiencing economies of scale, what is...
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!
The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve, or intersecting the average total cost curve?
2. Show graphically and explain why a firm with u-shaped AVC cost curve will produce when APL >MPL.
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