Suppose that Apple's short-term total cost function is given byTC25+5Q, where Q is the quantity produced. Which of thefollowing is correct about its short-term cost?○ Average fixed costs are constant at all levels of production.○ When production exceeds a certain level, marginal cost exceedsaverage cost.○ As production increases, marginal cost increases.○ At all levels of production, average variable cost and marginal cost areequal.○ The average total cost curve is U-shaped. Which of the following is correct about the cost curve?A. Average total cost is higher than or equal to average variablecost.B. When the average total cost curve rises, the marginal cost curvelies below the average total cost curve.C. The average fixed cost curve slopes downward.D. The slope of the total variable cost curve and the slope of thetotal cost curve are different.E. Average total cost is the sum of average fixed cost and averagevariable cost.○ A, D, E○ B, D, E○ B, C, DО А, В, С○ A, C, E

1. Total cost: Total cost refers to the complete expenditure accured by a firm during the production…

Which of the following is correct about the cost curve? A. Average total cost is higher than or equal to average variable cost. B. When the average total cost curve rises, the marginal cost curve lies below the average total cost curve. C. The average fixed cost curve slopes downward. D. The slope of the total variable cost curve and the slope of the total cost curve are different. E. Average total cost is the sum of average fixed cost and average variable cost. ○ A, D, E ○ B, D, E ○ B, C, D О А, В, С ○ A, C, E

Which of the following is correct about the cost curve? A. Average total cost is higher than or equal to average variable cost. B. When the average total cost curve rises, the marginal cost curve lies below the average total cost curve. C. The average fixed cost curve slopes downward. D. The slope of the total variable cost curve and the slope of the total cost curve are different. E. Average total cost is the sum of average fixed cost and average variable cost. ○ A, D, E ○ B, D, E ○ B, C, D О А, В, С ○ A, C, E

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.2P

See similar textbooks

Similar questions

Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
Answer the following: ○ a. If TVC 5 $80 and AVC 5 4, then what does quantity (Q) equal? ■ ○ b. If total cost is $40 when Q 5 2 and total cost is $45 when Q 5 3, then what does marginal cost equal? ■ ○ c. What does average fixed cost equal at Q 5 2 if totalvariable cost is $15 at Q 5 2? ■ ○ d. Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as quantity of output increases?
2.4 Q7 In the theory of the firm, economist consider the total cost to be a function of the output level Q: C=f(Q). (a) According to the definiton of a function, should each cost figure be associated with a unique level of output? (b) should each leyel of output determine a unique cost figure?
Please help ASAP What is the firm's fixed cost? What is the profit-maximizing level of output? Given that half of the fixed cost is avoidable and the firm produces at the optimal level of output, what is the firm's avoidable cost? Should the firm shut down its production? yes or no
1. Suppose a firm’s cost function is given by C(q) = 20 + 10q − 4q^2 + q^3(a) What is fixed cost?(b) What is variable cost?(c) Compute average cost, average fixed cost, and average variable cost, assuming q > 0.(d) Derive marginal cost.(e) Solve for the shut-down level of production, qSD. (Hint: The minimum of a well-behavedcurve can be found by setting the first derivative equal to zero.)
Revenue and Cost The total revenue function for LED TVs is given by R = 1050x dollars, and the total cost function for the TVs isC = 10,000 + 30x + x2dollars, where x is thenumber of TVs that are produced and sold.a. Which function is quadratic, and which is linear? b. Form the profit function for the TVs from thesetwo functions.c. Is the profit function a linear function, a quadraticfunction, or neither of these?
Question four Suppose that a firm's total cost equation is TC= 10,000+ 1000 + 0.25Q2 Where TC is total cost and Q is the level of output. (a) What output level will minimize the firm's average total cost? (b) Calculate the average and marginal cost at the average cost minimizing output level
QUESTION 1a. Is it possible to have diminishing returns to a single factor of production and constant returnsto scale at the same time? Discuss.b. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you aboutthe nature of the production function? What does each of these shapes tell you about theMRTS?QUESTION 2a. A firm faces the following average revenue (demand) curve:P = 120 − 0.02Qwhere Q is weekly production and P is price, measured in cents per unit. The firm’s costfunction is given by C = 60Q + 25,000. Assume that the firm maximizes profits.i. What is the level of production, price, and total profit per week?ii. If the government decides to levy a tax of 14 cents per unit on this product, what will be thenew level of production, price, and profit?b. The United States currently imports all of its coffee. The annual demand for coffee by U.S.consumers is given by the demand curve Q = 250 – 10P, where Q is quantity (in millions ofpounds) and P is the…