Question

13) When Comfy Cots produces 40 cots per day, its average variable cost is $600, its average total cost is $800, and its marg
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Production = 40 cots

AVC=600

ATC = 800

MC = 700

When the production is increased from 39 to 40 cots, the ATC decreases because when the MC<ATC, the ATC falls with an increased in output.

option(C)

Add a comment
Know the answer?
Add Answer to:
13) When Comfy Cots produces 40 cots per day, its average variable cost is $600, its average total cost is $800, an...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • $60 $50 $40 Long-Run Average Total Cost $30 $20 $10 $0 0 100 200 700 800...

    $60 $50 $40 Long-Run Average Total Cost $30 $20 $10 $0 0 100 200 700 800 900 300 400 500 600 Quantity of Necklaces 600 700 800 900 Quantity of Necklaces The above graph shows the long run average total cost for a factory that produces necklaces. Between which of the following quantities does this factory experience economies of scale? 300 necklaces and 900 necklaces O necklaces and 300 necklaces 500 necklaces and 900 necklaces 300 necklaces and 500 necklaces...

  • Workers Output Marginal Product Fixed cost Variable cost Total Cost Average Total cost Marginal cost 0...

    Workers Output Marginal Product Fixed cost Variable cost Total Cost Average Total cost Marginal cost 0 0 200 0 200 1 20 20 200 100 300 300 5.00 2 50 30 200 200 400 200 3.33 3 90 40 200 300 500 166.67 2.50 4 120 30 200 400 600 150 3.33 5 140 20 200 500 700 140 5.00 6 150 10 200 600 800 133.33 10.00 7 155 5 200 700 900 128.57 20.00 a. Fill in the...

  • When a company is producing 2000 items its average cost is $40.00 per item, and its...

    When a company is producing 2000 items its average cost is $40.00 per item, and its marginal cost is $24.co per item. Calculate average cost if the compant increased production slightly to 2001 items. Does average cost increase or decrease if the company increases production ?

  • In a widget factory, the producer is able to produce 40 widgets per day when she...

    In a widget factory, the producer is able to produce 40 widgets per day when she hires two workers. The producer is able to produce 70 widgets per day when she hires three workers. If diminishing marginal product occurs with the fourth worker then the producer is able to produce less than 100 widgets per day when she hires four workers. True False In the short run total costs include both fixed costs and variable costs. Rent paid on the...

  • Average Marginal Total Cost Quantity Variable Variable Fixed Cost |Total Cost Variable Cost $60 $20 $50...

    Average Marginal Total Cost Quantity Variable Variable Fixed Cost |Total Cost Variable Cost $60 $20 $50 $90 $140 $200 $270 60 S60R0 110 150 S60 200 20 25 -30 35 26045 80 20 30 40 50 60 70 $60 $60 $60 $60 50 50 52 4 40 330 Consider now that Caloi Bikes produces a quantity of 5 units that it sells for a price of $125 each. 2. What will be the company's profits or losses? How can you...

  • a firms average total cost is 60 its average variable cost is 30 and its total...

    a firms average total cost is 60 its average variable cost is 30 and its total fixed cost is 600. its output 6 per unit A firm's average total cost is $60, its average variable cost is $30, and its total fixed cost is $600. Its output is Select one 2.20 Units b. 50 Units 30 Units od 40 Units Today, firms in a perfectly competitive market are making an economic profit in the long run, firms will market until...

  • Marginal Cost Average Variable Cost Average Total Cost Quantity of Exercise Machines 1 2 3 4...

    Marginal Cost Average Variable Cost Average Total Cost Quantity of Exercise Machines 1 2 3 4 5 6 7 8 9 10 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $200 $300 $400 $500 $600 $700 $800 $900 $1000 $1100 $1200 $800 $733.33 $750 $800 $866.67 $942.86 $1025 $1111.11 $1200 The above table shows the costs of a small manufacturer producing different quantities of exercise machines. If the exercise machine market is perfectly competitive and exercise machines cost...

  • Marginal Cost Quantity of Exercise Machines Average Variable Cost Average Total Cost 1 2 3 4...

    Marginal Cost Quantity of Exercise Machines Average Variable Cost Average Total Cost 1 2 3 4 5 6 7 8 9 10 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $200 $300 $400 $500 $600 $700 $800 $900 $1000 $1100 $1200 $800 $733.33 $750 $800 $866.67 $942.86 $1025 $1111.11 $1200 The above table shows the costs of a small manufacturer producing different quantities of exercise machines. If the exercise machine market is perfectly competitive and exercise machines cost...

  • $70 $60 $50 $40 Long-Run Average Total Cost $30 Long Run Average Total Cost Necklace Factory...

    $70 $60 $50 $40 Long-Run Average Total Cost $30 Long Run Average Total Cost Necklace Factory $20 $10 $0 $0 0 100 200 300 400 500 600 700 800 900 Quantity of Necklaces The above graph shows the long run average total cost for a factory that produces necklaces. Between which of the following quantities does this factory experience economies of scale? 300 necklaces and 500 necklaces 500 necklaces and 900 necklaces 300 necklaces and 900 necklaces O necklaces and...

  • The graph below shows the marginal, average variable, and average total cost curves for a pizza...

    The graph below shows the marginal, average variable, and average total cost curves for a pizza seller. Refer to the graph to answer the following questions. Instructions: Indicate the profit-maximizing level of output. Enter your response as a whole number. Cost Curves 3.50 3.25 3.00 2.75 Select Select Select 2.50 (S/slice) 2.00 W 1.75 1.50 1.25 1.00 0.75 0.50 0.25 100 200 300 400 500 600 700 800 900 Q -> Quantity (slices/day) a. What is the amount of the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT