Tong ruh, keep outpu Iikely do Shift to operate on ATC2 Shift to operate on ATC3 Shut down Stay on ATC, but decrease to the point touching LRATC True or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve. False True

Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost $ 25.00 Total Product $150.00 $175.00 98.00 70.00 $25.00 75.00 23.00 21.00 3 50.00 20.00 14.00 37.50 21.00 58.50 24.00 30.00 23.00 53.00 31.00 6 25.00 25.00 50.00 35.00 21.43 28.00 49.43 46.01 51.76 55.67 63.00 18.75 33.00 68.07 16.67 39.00 86.95 10 15.00 48.00 128.97 The accompanying table gives cost data for a firm that is selling in a purely competitive market. We can infer that, at zero output, this firm's total fixed, total variable, and total costs are O $150, $25, and $175, respectively. O zero, $25, and $175, respectively. O $150, zero, and $150, respectively. O zero, zero, and zero, respectively.

The ratio of total cost to number of units produced defines: a. Incremental cost b. Average cost c. Marginal cost d. Opportunity cost.

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

Is fixed cost always smaller than total cost ?

Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily filled in sequentially. (Hint: Determine the total fixed cost first.) Instructions: Enter your answers rounded to two decimal places. Total Average Fixed Cost Average Total Cost Marginal Cost Output Variable Total Cost Cost 1 $10.00 $9.76 $9.76 $19.76 2 $19.06 $14.53 $9.30 $29.06 3 $3.33 $12.63 $37.90 4 $2.50 $36.31 $11.58 $8.41 $46.31 $2.00 $44.30 $10.86 LO

Marginal cost is defined as the change in total cost when: a) Total fixed cost increases b) Total variable cost decreases c) One more unit of output is produced d) Average cost decreases

Compare and contrast economies of scale and economies of scope. Give an example of each from your own experience or research.