**Figure Explanation:**The graph illustrates four different cost curves labeled A, B, C, and D. The x-axis represents "Quantity (units per day)," ranging from 0 to 80, and the y-axis represents "Cost per unit (dollars per unit)," ranging from 0 to 20.- **Curve A**: Downward sloping, indicating decreasing costs with increased quantity and intersects with curve B at a certain point.- **Curve B**: U-shaped, representing typical cost behavior as quantity increases, intersecting with curves A and C.- **Curve C**: Appears to be upward sloping, increasing as quantity increases, overlapping slightly with curve B.- **Curve D**: Downward sloping, below the other curves, suggesting decreasing costs with increased quantity.The intersection of curves A and B indicates a critical point of cost analysis.**Question:**In the figure, the intersection of curves A and B is the point at which:- A. average total cost is minimized.- B. average variable cost is minimized.- C. average fixed cost is minimized.- D. total product is maximized.This educational question prompts analysis of cost behaviors and optimization of production costs based on the interaction of these curves.

Answered: Image /qna-images/answer/b5874c18-8205-4872-b393-0e231dabb5b4.jpg

In the figure, the intersection of curves A and B is the point at which 20 16 20 40 60 80 Quantily (unts per day) O A. average total cost is minimized. OB. average variable cost is minimized. O C. average fixed cost is minimized. OD. total product is maximized. 8, 12 4. Costs per unit (dollars per unit)

In the figure, the intersection of curves A and B is the point at which 20 16 20 40 60 80 Quantily (unts per day) O A. average total cost is minimized. OB. average variable cost is minimized. O C. average fixed cost is minimized. OD. total product is maximized. 8, 12 4. Costs per unit (dollars per unit)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

19) Accounting costs and economic costs differ because A) Economic costs include explicit costs and accounting costs do not. B) Accounting costs include explicit costs and economic costs do not. C) Economic costs include implicit costs and accounting costs do not. D) Accounting costs include implicit costs and economic costs do not. anscribed Text C 20) Megan used to work at the local pizzeria for $15,000 per year but quit in order to start her own deli. To buy the necessary equipment, she withdrew $20,000 from her inheritance (which paid 8 percent interest). Last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. She asked her dad the accountant and her mom the economist to calculate her costs for her. A) Dad says her cost is $31,000 and Mom says her cost is $47,600. B) Dad says her cost is $31,000 and Mom says her cost is $35,000. Dad says her cost is $9,000 and Mom says her cost is $2,400. D) Dad says her cost is $25,000 and Mom says her cost…
15 3. Jane's Juice Bar has the following cost schedules: Quantity 0 vats of juice $0 1 10 12 25 3 45 4 70 100 135 10 1 12 13 14 15 Variable cost Total cost $30 40 55 75 100 130 165 Calculate average variable cost, average total cost, and marginal cost for each quantity. Put these numbers in the table below. Quantity Average variable cost Average total cost Marginal cost a. b. Graph all three curves (average variable cost, average total cost and marginal cost) using Excel or a piece of grid paper. Attach the graph to this assignment. What is the relationship between the marginal-cost curve and the average total cost curve? Between the marginal cost curve and the average variable cost curve? Explain
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 100 1 74°F Clear 2 3 440 620 800 Q = 200 280 380 480 Average Total Cost (Dollars per bike) Q = 300 Q = 400 240 320 240 320 240 240 Q = 500 480 380 280 Q = 600 800 620 440 Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is $440 per bike. Suppose Ike's Bikes is expecting to produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using one factory On the following graph, plot the three SRATC curves for Ike's Bikes from the…
SECTION B: IDENTIFICATION OF COST CURVES From Figure 1 Identify the cost curves 41, 42, 43, and 44. 41 Cost 42 43 44 Quantity of output Figure 1: Cost curves
Question 6 Not yet answered Marked out of 1 Remove flag Drawinue nare If the average fixed cost of seven tubs of ice cream is $50, the total cost of zero tubs is: O a. $350 Ob. $250 c. $500 Od. $200 Clear my choice Next page
Discuss the long-run average cost curve. Use the diagram attached as the basisfor your answer.
Please help me understand this with explanation and complete solutions thank you
QUESTION 6 At a total cost of $3,100, a company can produce 4 scooters. It has fixed costs of $1,000. If it produces 5 scooters, the costs of production total $3,800. Which of the following statements is true? O Variable costs of producing 4 scooters total $3096. O The average (or per unit) cost of producing 5 scooters is $800 per scooter The total cost curve for this firm is downward sloping Fixed costs will be higher when it produces 5 scooters The marginal cost of producing the fifth scooter is $700
I need the answer as soon as possible
Is a type of cost which does vary with the unit of production and will change with the number of unit sold. O A. Variable cost O B. Fixed cost O C. Sunk cost O D. Opportunity cost
Output TC ($) 200 250 15 300 20 350 23 400 25 450 Refer to the information above to answer this question. If total variable cost decreases by 20% at all levels of output, what is ATC when output is 20? O a. $12 O b. $30 Oc. $10 O d. $16 O e. $80
Which of tholowing statements is true? O An explicit cost is more important, dolar for dollar, than an implicit cost. An explicit cost is an actual cost an implicit cost is a theoretical cost. Economic costs include both explicit costs and implicit costs O Explicit costs are accounting costs, not economic costs, implicit costs are economic costs, not accounting cos