ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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When average cost decreases as output increases,
Group of answer choices
average variable cost is rising
marginal cost is below average cost
average fixed cost is rising
marginal cost is above average cost
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- Fixed cost is Multiple Choice the cost of producing one more unit of capital, for example, machinery. any cost that does not change when the firm changes its output. average cost multiplied by the firm's output. usually zero in the short run.arrow_forwarddefine total fixed costsarrow_forwardUsing the figure above, what is the total cost for the firm?arrow_forward
- Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: (i) the fixed cost is (ii) the variable cost is (iii) the marginal cost is (iv) the average cost isarrow_forwardA bag factory produces 30 units of output. Its average fixed cost (AFC) = $32, average total cost (ATC) = $45, and marginal cost (MC) = $25. The shoe factory’s total variable cost isarrow_forwardIf the total cost of 20 units of a product is $20, and the total cost of 21 units is $21, then from 20 to Multiple Choice marginal cost is decreasing. marginal cost equals average total cost. marginal cost equals average variable cost. average total cost equals average variable cost. I units of product thearrow_forward
- When a firm produces one unit, the variable cost is $3. When the firm produces two units, the variable cost is $6. What is the marginal cost associated with two units of production.arrow_forwardMoonbucks has the following cost schedules: Quantity (bottle) Variable Cost (RM) Total Cost (RM) 0 0 100 1 90 190 2 170 270 3 240 340 4 300 400 5 370 470 6 450 550 7 540 640 8 650 750 9 780 880 10 930 1030 Calculate average variable cost, average total cost, and marginal cost for each quantity.arrow_forwardWhich 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 Costarrow_forward
- In Figure 2-a, the average variable cost curve is curve Group of answer choices A D C Barrow_forwardA cost that changes with the level of production is called a(n)____cost a.variable b.average total c.marginal b.fixedarrow_forwardCalculate Marginal cost if total cost changes from 80 to 160 and output rises from 1 to 3arrow_forward
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