Refer to the table below. Quantity Cost (in dollars) Fixed Costs (in dollars) Total Costs (in dollars) Average Total Costs (in dollars per unit) Average Variable Costs (in dollars per unit) Marginal Costs (in dollars per unit) 0 0 40 40 - - - - - - 1 15 40 55 55 15 15 2 35 40 75 37.5 17.5 20 3 60 40 100 33.3 20 25 4 90 40 130 32.5 22.5 30 5 125 40 165 33 25 35 6 160 40 200 33.3 26.6 40 If this information were used to create a total cost graph, the curve should Question 6 options: begin at 40 on the vertical axis and slope upward. become steeper as quantity increases. become steeper due to diminishing returns. reflect all of the above.
Refer to the table below. Quantity Cost (in dollars) Fixed Costs (in dollars) Total Costs (in dollars) Average Total Costs (in dollars per unit) Average Variable Costs (in dollars per unit) Marginal Costs (in dollars per unit) 0 0 40 40 - - - - - - 1 15 40 55 55 15 15 2 35 40 75 37.5 17.5 20 3 60 40 100 33.3 20 25 4 90 40 130 32.5 22.5 30 5 125 40 165 33 25 35 6 160 40 200 33.3 26.6 40 If this information were used to create a total cost graph, the curve should Question 6 options: begin at 40 on the vertical axis and slope upward. become steeper as quantity increases. become steeper due to diminishing returns. reflect all of the above.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 2MC
Related questions
Question
Refer to the table below.
|
Quantity |
Cost (in dollars) |
Fixed Costs (in dollars) |
Total Costs (in dollars) |
Average Total Costs (in dollars per unit) |
|
Marginal Costs (in dollars per unit) |
|
0 |
0 |
40 |
40 |
- - |
- - |
- - |
|
1 |
15 |
40 |
55 |
55 |
15 |
15 |
|
2 |
35 |
40 |
75 |
37.5 |
17.5 |
20 |
|
3 |
60 |
40 |
100 |
33.3 |
20 |
25 |
|
4 |
90 |
40 |
130 |
32.5 |
22.5 |
30 |
|
5 |
125 |
40 |
165 |
33 |
25 |
35 |
|
6 |
160 |
40 |
200 |
33.3 |
26.6 |
40 |
If this information were used to create a total cost graph, the curve should
Question 6 options:
|
|
begin at 40 on the vertical axis and slope upward. |
|
|
become steeper as quantity increases. |
|
|
become steeper due to diminishing returns. |
|
|
reflect all of the above.
|
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