Show that for a proit-maximizing firm producing at its optimal quantity, y, its average total cost is minimized when marginal cost is equal to average total cost. Some tips to get you started:

Q: In the short-run, if the marginal cost of a firm in a competitive industry is upward sloping while…

A: The short-run is the time period where at least one variable is fixed and others are variable. In…

Q: Using graph, explain when the firm maximizes its profit under perfect completion?

A: In perfect competition, there are many sellers. Therefore, no single seller has control over the…

Q: Q2. Law of diminishing marginal returns is applicable in both short run as well as long run.  is it…

A: The law of diminishing marginal returns expresses that as an ever increasing number of units of data…

Q: Using the graph below, determine if the firm should shut down or stay open in the short run and why.…

A: b) the firm should shut down in the short run because they are unable to cover their variable cost

Q: If a firm's average variable cost curve is rising, its marginal cost curve must be

A: If a firm`s average variable cost curve is rising, its marginal cost curve must be

Q: As the quantity produced increases, then a. variable cost always decreases b. average fixed cost…

A: Total cost is defined as the sum of all exposed being incurred by the producer in order to producer…

Q: Explain the law of diminishing returns.asap

A: In economics, various laws and theory are used to explains specific market activity. These laws arr…

Q: Output per hour 0 1 Total Cost $ $ ՄԴ 1,000 1,200

A: Total cost is the sum of fixed cost and variable cost. Fixed cost is the cost that remains same at…

Q: It requires a large sum of money to produce a musical CD. The band has to be formed and rehearsed.…

A: Introduction  Marginal costs refer to additional to total cost when one more units of output is…

Q: d. If the firm closes down and produces no output, what will be its total cost? e. If the firm…

A: Total Cost is the sum total of Total Variable Cost and Total Fixed Cost. It denotes the total cost…

Q: a) What is Quantity of cars TC $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000…

A: The total sum that a producer must pay to create all of their goods and services is referred to as…

Q: Using graph, explain when the firm maximizes its profit under perfect completion?

A: The total revenue is calculated by the price of the good times the quantity of goods purchased. The…

Q: You have the following information about long-run total cost for the following firms: Quantity…

A: The long-run average cost curve represents the least average cost to produce any given level of…

Q: One A4 page please  Explain why there are no fixed costs in the long run

A: In long run, all the fixed costs that exist in short run becomes variable hence, there is no fixed…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: The curves below reflect information about the average total cost, average fixed cost, average…

A: Average fixed cost is a measure of fixed cost which gives value of fixed cost per unit of…

Q: bath the marginal cost and the average variable cost curves are U-shaped, at the minimum point of…

A: Average total cost is the sum of average Fixed cost and average variable cost. It is referred as…

Q: Examine the graph below. The firm is experiencing decreasing returns to scale between points SRATCS…

A: There are three types of return to scale Increasing Return to scale Diminishing return to scale…

Q: Mariam's Kitchen offers catered meals in a perfectly competitive industry. Mariam's machinery costs…

A: Total cost shows the total cost of producing a good. Total cost includes the fixed cost and the…

Q: In the short run, if a marginal cost of a firm in a competitive industry is increasing while its…

A:

Q: Refer to the table to the right which shows cost data for Lotus​ Lanterns, a producer of whimsical…

A: Variable costThe total expenses for a firm are composed of two branches. The fixed expenses are the…

Q: Quantity of cars Oa Ob Oc Od 1-8 6-8 1 2 46 3 4 5 6 7 8 LRATC of car $30,000 20,000 The wagon is a…

A: A firm which is long-run average total cost (LRATC) shows the average cost per unit of output over a…

Q: Which of the following is correct with respect to economic profit? PLEASE EXPLAIN THANKS!   A.…

A: The main objective of any firm is profit maximization and a firm maximizes its profit by producing…

Q: Which of the following is the extra, or additional, cost of producing one more unit of output?…

A: While producing the output, the producers majorly incur two kinds of costs, for example, the…

Q: If total profit is at a maximum, marginal profit is zero. a. True O b. False

A: # The profit maximization for a firm occurs at the point where the marginal cost is equal to the…

Q: Perfect Competition I

A: There are 2 forms of market: Perfect and Imperfect market form. These includes markets like: Perfect…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: 3. As marginal cost rises, average variable cost necessarily rises. * True False

A: Marginal cost (MC) curve is the incremental cost of production, i.e. the cost incurred when one more…

Q: Reler to the to graph on the nght Which level of ouput in the gnph below represents the minimum…

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

Q: The Average total cost curves, the original ATCO and when an extra café is added ATC, is shown in…

A: When firms operate in a market, they incur different costs. The total cost is the sum of fixed costs…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: The graph you have shows a firm's short-run cost curves, which depict how costs change with…