which of the following statements is true? O since fixed costs are constant as output changes in the short run, it follows that average fixed cost is constant in the short-run too O marginal cost is the additional cost of producing an additional unit of output O changes in variable costs are reflected dollar-for-dollar in total cost OB and C

which of the following statements is true? O since fixed costs are constant as output changes in the short run, it follows that average fixed cost is constant in the short-run too O marginal cost is the additional cost of producing an additional unit of output O changes in variable costs are reflected dollar-for-dollar in total cost OB and C

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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what is the correct answer? please explain.
Which of the following is always true? When marginal costs are less than average total costs, average total costs will be decreasing. When average fixed costs are falling, marginal costs must be less than average fixed costs. O When average fixed costs are rising, marginal costs must be greater than average total costs. When marginal costs are greater than average total costs, average total costs will be decreasing.
3) Which of the following is not true about the marginal cost? Oo The marginal cost (MC) curve is U shaped. It can be calculated by dividing the change in the total cost by the change in the output. It is the additional cost incurred by a firm from changing output by a certain amount. It can be calculated by dividing the total cost by the quantity.
As output rises, which of the following always increases? variable cost only marginal cost only total cost and variable cost total cost only O fixed cost only
When fixed costs are ignored because they are irrelevant to a business's production decision, they are called O explicit costs. O implicit costs. Osunk costs. O opportunity costs.
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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 $700
QUESTION 1 Consider the following cost function (with input prices taken as constants): c(y) =y. What is MC(y)? Oa. y313 O b.y? C. O d. 2y QUESTION 2 Consider the following cost function (with input prices taken as constants): c(y) = y. What is AC(y)? Oa. 3y2 Ob.y Oc. 2y3 Od.y313
Is a type of cost which does vary with the unit of production and will change with the number of unit sold. O A. Variable cost O B. Fixed cost O C. Sunk cost O D. Opportunity cost
Output TC ($) 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
If a firm experiences economies of scale over all relevantlevels of output, its long-run average total cost curve will: O slope downward O slope upward. be vertical O be horizontal.
Cost Per Year O O O 1 At what level of output does average total cost equal marginal cost? ♂ Q4 QQQQ Q8 TC VC FC Output