4. Average cost is defined as O a. total cost divided by marginal cost. b. total cost divided by total output. O c. total output times cost per unit. С. d. total output times marginal cost.
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- What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?Which of the following statement is correct? a. Marginal cost will equal average total cost when marginal cost is at its lowest point. b. When marginal cost is less than average total cost, average total cost will rise. C. When marginal cost is greater than average total cost, average total cost will fall. d. Marginal cost will equal average total cost when average total cost is at its lowest point.a. Define economies of scale and explain why they might arise. Definediseconomies of scale and explain why they might arise. b. Explain the relationship between total product, marginal product, and averageproduct.c. How does fixed cost affect marginal cost? Why is this relationship important?
- 1. Economies and Diseconomies of scale 2. Graph of marginal cost, average cost and average total cost. Take an example 3. Marginal cost, average variable cost, and average total cost. Take an exampleIf the marginal cost of production is greater than the average cost, in what direction must the average cost be changing if any? A. The average cost must be rising. B. The average cost would equal 0. C. The average cost must be falling. D. The average cost is unaffected. E. The average cost would become non-existent.Learning by doing is represented by A. no change in the average total cost curve. B. an increase in the average total cost curve. C. a decrease in the average total cost curve. D. an increase in the average total cost curve and a decrease in the marginal cost curve
- 8. Why is the Minimum Average Total Cost and Efficient Scale important?Average cost is defined as a. total cost divided by marginal cost. b. total cost divided by total output. c. total output times cost per unit. d. total output times marginal cost.Which of the following is true of the relationship between Average Cost and Marginal Cost Select one: a. None of the answers given b. Average increases when marginal cost decreases c. Average costs decreases when marginal cost increases d. Average costs increases when marginal cost increases
- Costs A. B. 80 120 160 180 200 Refer to the graph above to answer this question. What does point a represent? C. D. MC Economic capacity. Maximum marginal product. Excess capacity. AVC Maximum average product. ATCRefer to Figure: The vertical distance ABis Select one: A. total cost. B. marginal cost. C. total fixed cost D. average fixed cost.a. Complete the following table and answer two questions about costs. Instructions: Enter your responses rounded to the nearest whole dollar. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Rate of Output Total Cost Marginal Cost Average Cost $ 60 65 $ 75 $ 105 $ 1 $ 5 $ 65 2 $ 10 $ 62 3 $ 30 $4 20 4 $ 140 $ 35 2$ 5 5 180 $ 40 $ 5 b. What output has the lowest per-unit cost equal to marginal cost? units c. What is the value of fixed costs?