When average cost decreases as output increases, Group of answer choices marginal cost is below average cost average variable cost is rising average fixed cost is rising marginal cost is above average cost

When average cost decreases as output increases, Group of answer choices marginal cost is below average cost average variable cost is rising average fixed cost is rising marginal cost is above average cost

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is…

A: Marginal cost measures the change in total cost due to a change in quantity produced. Marginal cost…

Q: This is a graph of our firm’s costs. Label the lines on the graph using the following labels:…

A: Cost of production is those costs which are incurred by the manufacturer for manufacturing the…

Q: Economies to scale refer to

A: Companies benefit from economies of scale as manufacturing gets more efficient.Economies of scale…

Q: The average total cost to produce 100 cookies is .25 per cookie. The marginal cost is constant at…

A: In economics, cost is the monetary value that has been spent on production of goods and services.…

Q: If short run total costs are 2q2 + 50q + 50, and output is 15, average variable costs will be 80.…

A: Given; Total cost; TC=2q2+50q+50 Formula to calculate average variable cost:-…

Q: Suppose the fixed cost of building a nuclear power plant is $1 billion. Suppose also that the only…

A: Marginal cost refers to the additional cost incurred by producing one more unit of a good or…

Q: If marginal cost is below average total cost, then average total cost Question 10 options: a)…

A: Marginal cost is the additional cost incurred when production is increased by one unit.

Q: The total cost changes from 92 to 122 and the quantity changes from 1 to 2 Calculate the value of…

A: # change in total cost divided by the change in total quantity is referred to be as the marginal…

Q: The “Sad Student” Company finds that it costs a total of C(q) = 9720 + 500q -1.5q2 + 0.005q3…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: In the figure above, which of the following statements makes sense? Group of answer choices A)…

A: For the production of the goods and services , firm incurred some cost . There is mainly 2 type of…

Q: 39) If the marginal cost curve is below the average variable cost curve, then A) average variable…

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

Q: graph the marginal cost, average total cost, average variable cost on one graph based on the data…

A: The average cost is equal to the per unit cost. The average cost is equal to the total cost divided…

Q: Which of the following is true of the relationship between Average Cost and Marginal Cost Select…

A: Average Cost refers to the per-unit cost of production, it means both fixed and variable costs are…

Q: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: Eccles Incorporated (based in Ogden) manufactures precision steel sprockets for applications…

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

Q: Implicit cost is $200, explicit cost is $260 and total revenue is $800 Calculate the Economic…

A: The information given to us:- Implicit cost of firm = $200 million Explicit cost of firm = $260…

Q: Problem 2, From the data given below, calculate: O Average fixed cost, (ii) Average variable cost,…

Q: The cost to produce x units is given by C ( x ) = 0.03x2 + 8.8x + 1600 + 6.8 square root of x. Find…

A: Marginal-Cost(MC) is the cost(c) of producing one additional unit. Given the cost-function(c(x)),…

Q: nal cost Multiple Choice O equals both average variable cost and average total cost at their…

A: The marginal cost measures the change in the total cost when one additional unit of output is…

Q: Water and electricity used in manufacturing company is an example of: A Manufacturing overhead -…

A: The markets are the place where the buyers of various goods, and services tend to meet and interact…

Q: Eccles Incorporated (based in Ogden) manufactures precision steel sprockets for applications…

Q: In the short run, which cost is fixed and cannot be changed? a) Average cost b) Marginal cost c)…

A: Understanding the various sorts of costs in financial aspects is significant for examining business…

Q: When the average cost is greater than the marginal cost, the firm is producing in which

A: Average cost is the total cost of production divided by the quantity of output produced. It…

Q: The total cost changes from 92 to 122 and the quantity changes from 1 to 2 Calculate the value of…

A: Marginal cost refers to the additional total cost derived from an additional quantity produced.…

Q: When marginal cost is greater than average total cost, the Select one: average total cost decreases…

A: Marginal cost (MC) refers to the additional cost of production realized with an increase in the…

Q: Calculate the value of average cost of AFC is $70 and AVC is $67

A: According to the question, we are given that:- Average fixed cost = AFC = $70 Average variable cost…

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

Q: A firm manufacture robots, for which $1000 machinary is used. The additional per unit cost is $100.…

A: Total cost is the sum of fixed cost and variable cost. Variable cost is a cost that varies with the…

Q: When a firm is experiencing economies of scale, long-run Group of answer choices average total cost…

A: Economies of scale is a situation in economy where the organizations or firms are able to produce…

Q: Government imposes higher tax on tobacco production. Which cost curves will be affected and why of…

A: When the government imposes a higher tax on tobacco production or the output. With this tax…

Q: Why is the average cost a U shape

A: Cost refers to the amount of money required to produce the goods and services by the various factors…

Q: Economic cost is equal to the sum of the explicit and the implicit costs True False

A: The economics as a study is associated with the use of various resources which are available with…

Q: 20. What is the Marginal Cost at Q=6? a) 7.50 b) 12 c) 20 d) 25 e) 45 f) 100 Og) 120 h) 160

A: The marginal cost is the cost of manufacturing an extra unit, and it relates to the change in…

Q: A company produces very unusual CD's for which the variable cost is $ 15 per CD and the fixed costs…

A: Break-Even Point: The cost of production of any product involves the variable cost, which is…

Q: find 5 problems related to variable cost, total cost, and marginal cost and Solve problems.

A: Answer: Introductions: Variable cost: Variable cost refers to the cost of the inputs that vary with…

Q: Fixed cost is

A: Please check the solution below

Q: Consider the following cost function: C(q) = 100+10q+q² (i) What are the formulas for the Total…

A: Given the information: C(q) = 100 + 10q + q2

Q: define total fixed costs

A: Cost refers to the expenditure incurred in producing a good by a producer. Cost is classified as:…

Q: Using the figure above, what is the total cost for the firm?

A: Total cost is the summation of total fixed cost and total variable cost. The average total cost to…

Q: Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: (i) the fixed cost is (ii)…

A: If the cost function of a firm is given as: C(q): 200+5q One can identify other cost function as…

Q: A bag factory produces 30 units of output. Its average fixed cost (AFC) = $32, average total cost…

A: The objective of the question is to calculate the total variable cost (TVC) of the bag factory given…

Q: If the total cost of 20 units of a product is $20, and the total cost of 21 units is $21, then from…

A: Marginal cost is defined as the change in total production resulting from producing an extra unit of…

Q: Please fill out the missing figures Output Total Cost (TC) Total Fixed Costs (TFC) Total…

A: Total fixed cost is the cost that remains the same with the change in the level of output produced.…

Question

When average cost decreases as output increases,

Group of answer choices

marginal cost is below average cost

average variable cost is rising

average fixed cost is rising

marginal cost is above average cost

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

TC = 4,500 + 5Q2 MC = 10Q What is the average total cost equation? a. b. C. d. ATC = 4500Q + 5 ATC = 4500 + 10Q ATC= 4500/Q+5 ATC = 4500/Q +5Q
Which of the following is correct? a) Total Fixed Cost = Total Cost + Total Variable Cost b) Total Cost = Total Variable Cost + Marginal Cost c) Average Fixed Cost = Average Total Cost – Average Variable Cost d) Average Total Cost = Marginal Cost + Average Fixed Cost
In Figure 2-a, the average variable cost curve is curve Group of answer choices A D C B
How profit is different from the incorporating normal profit and when the normal profit is into average cost curve?
A cost that changes with the level of production is called a(n)____cost a.variable b.average total c.marginal b.fixed
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
in your own personal life, what are some fixed and variable costs you have?
The fixed cost per unit is equal to: Multiple choice question. average variable cost. average total cost. average fixed cost. marginal cost.
The differences between total costs and variable costs is given by sunk costs True False
The total cost of producing mobile phones is TC = 10 + 70q + 30q^2 l. Calculate the marginal cost.
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
For each lettered space in the following table, determine the appropriate dollar amount.