If the marginal cost of production is greater than the average cost, in what direction must the average cost be changing if any?

Q: When there are positive fixed costs, can the average variable cost curve and average total cost…

A: We have 3 different costs, ATC, AVC and AFC where ATC is the sum of AVC and AFC. Given that are…

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: QUESTION 25 The Marginal Cost curve crosses the Average Total Cost curve at its maximum. True False

A: "Marginal cost represents change in total costs when one more unit is produced while average total…

Q: Choose all answers that are correct:  the marginal cost is the slope of the... a. The variable cost…

A: Marginal cost = Change in total cost / Change in quantity of output

Q: Why is the Average Total Cost curve U-shaped?

A: The average cost (AC) or average total cost (ATC) is the cost per unit of production. The average…

Q: What effect, if any, does diminishing marginal product have on the shape of the marginal cost curve?

A: According to the law of diminishing marginal returns, after a certain level adding additional units…

Q: When marginal cost exceeds average total cost, which of the following must be true?   Question 14…

A: Costs are the expenses that a firm incurs in the form of the purchase of inputs to produce goods and…

Q: How does fixed cost affect marginal cost? Why is this relationship important?

A: Fixed cost is the cost which does not change with the change in the output.Marginal cost is the…

Q: If the government says that firm X must pay 50000 in taxes simply because it in the business…

A: In a market, government imposes different types of taxes on different products and services based on…

Q: In the short run marginal cost crosses average total cost at the minimum of average total cost True…

A: According to the given question Simply a Short run period is that period in which the other factors…

Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per…

A: Given data: Total cost function TC=$1000+$6X Quantity X=3000 units

Q: how is the slope of the total cost and marginal cost related?

A:

Q: Total cost is equal to average cost times marginal cost. a. True O b. False

A: # Total cost is referred to be as the sum of total fixed costs and the total variable costs which…

Q: 1. Economies and Diseconomies of scale 2. Graph of marginal cost, average cost and average total…

A: Hi! Thank you for the question but as per the guidelines, we only answer one question at a time.…

Q: The minimum average cost occurs when the average cost is equal to the marginal cost.

A: The total cost incurred by a firm includes fixed cost and variable cost. Fixed costs are the costs…

Q: Solve the attahment.

A: There are different concepts of costs in the production process such as total cost, marginal cost,…

Q: Calculate average cost when total cost Is 100 and total quantity is 8

A: Total cost is defined as the sum of all the expenses being faced by the producer in the production…

Q: Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and…

A: Implicit Cost: Implicit cost is due to the factors which are entrepreneur himself owns and employs…

Q: Average total cost intersects marginal cost at minimum marginal cost. True False

A:

Q: Ifmarginal cost is below average total cost, average total cost will

A: During the production of the communities the overall cost incurred is referred to be as a total cost…

Q: Read Chapter 13 and fill in the grid below. Also add a column to the grid -to the "right" of Average…

A: The table can be filled as follows:

Q: When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: As long as marginal cost is below average variable cost or average total cost , then average…

A: When MC is below AVC, MC pulls the common down. When MC is above AVC, MC is pushing the typical up;…

Q: Which of the following is considered an implicit cost? PLEASE EXPLAIN.   A. Use of your labor…

A: Implicit Cost is self owned cost not need to pay to other or a cost has already occurred not…

Q: A producer borrows money and start a business . He himself looks after the business. Identify the…

A: # In a business if we consider the assets of the firm and its opportunity cost then this is counted…

Q: As long as marginal cost is below average cost, average cost will be a. falling b. rising. .…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Amjad takes twenty minutes to travel from his home to his work using his car; however, he chose to…

A: The money spent to purchase the factor of production to produce goods and services is termed as cost…

Q: Which of the following statement is correct? a. Marginal cost will equal average total cost when…

A: Let's first understand what's the meaning of marginal cost. The cost which is incurred on the…

Q: Fixed cost is a. Any cost that does not vary with the quantity of output. b. The ratio of total cost…

A: Companies have different costs linked to their company. These expenses are broken down by the…

Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per…

A: Answer: Given, Total cost function: TC=$1,000+$6X Calculation: To calculate marginal cost, derivate…

Q: Graph the curves for total cost, ATC, AVC, AFC, MC. Explain shape of these curves and the…

A: There exist various relationship between these curves.

Q: Learning by doing is represented by   A. no change in the average total cost curve.   B. an…

A: Learning by doing is the productivity achieved by economists' innovation and technological change in…

Q: How would you derive marginal cost from total cost?

A: Marginal cost is defined as the cost which is incurred by the producer in order to produce one more…

Q: True or False The average total cost cannot equal marginal cost.

A: Average total cost It refers to the total cost per unit of production. ATC = TC/Q where ATC is…

Q: The ratio of total cost to number of units produced defines: a. Incremental cost b. Average cost c.…

A: Costs are defined as the expenses incurred by the producer to purchase goods and services. Wages,…