Which statement is correct?Choose an answerO 1. The average fixed costs increase with the production volume.O 2. The average total costs are minimal when the average fixed costs are equal to the averagevariable costs.O 3. In the long term, it pays to maintain production operations as soon as a positivecontribution margin is generated.O 4. The operating optimum is where the marginal costs intersect the average variable costs.O 5. As long as the marginal costs are below the average total costs, theaverage total cost.

Answered: Which statement is correct? Choose an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 35 As you add more and more units of a variable factor to a fixed factor, marginal output will start to fall at some point. What is this called? O a. Diseconomies of scale O b. Diminishing marginal returns O c. Diseconomies of scope O d. Diminishing average returns
In the table, the average variable cost at 2 units of output is Output (balloons per hour] Total Cost (dollars per hour) $4.00 $7.00 $8.00 $12.50 $17.20 $22.00 $29.00 5 O A. $1.00. OB. $2.00. OC. $4.00. OD. $4.80. 1234t n6
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6 7 8 answer only
Bozo is a clown. He wants to start a clowning business where he sends other clowns out to birthday parties. Use the graph to Birthday parties answer the questions. 20 19 18 17 16 15 14 13 12 What is the marginal product of the third worker? O 2 11 10 6. 8. 7. 3.0 9. 3. 2. I 2 3 9 10 4 56 8. This production function demonstrates Workers diminishing marginal costs. a negative marginal product of labor. diminishing marginal returns to labor. diminishing output.
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QUESTION 9 A company currently sells for $100 a product that has a variable cost per unit of $48. Fixed costs are $910,000 and not expected to change in the next period. If the company desires to reduce its break-even point by 1,250 units, by how much must they reduce variable costs? OA. $5.00 4 B. $3.75 OC. $4.00 D. $5.25
Q46 Why do we refer to the long-run average cost curve as a "boundary"? a. The points below the curve represent cost levels that are unattainable given current technology and factor prices. b. The points above the curve represent cost levels attainable to the firm only with adjustment of all factor prices. c. The points above the curve represent costs that are unattainable given current technology and factor prices. d. None of the other options are correct. e. The points on the curve represent a boundary between fixed factor prices and variable factor prices. Clear my choice
. What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From ___ to ____g. Over what range of the variable input usage do decreasing marginal returns exist?From ___ to ___h. Over what range of input usage do negative marginal returns exist?From ___ to ___ . What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From to g. Over what range of the…
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estions tu1et10r.07.099 O O Question 18 of 20 Which of the following statements is true? a. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls. b. The marginal product is the output per unit of a variable input. c. When marginal productivity of a variable input is falling then marginal costs of production must be rising. d. Average variable cost and average fixed cost are U-shaped curves.
Table 13-12 Quantity 1 2 3 5 6 7 Long-Run Total Cost (Dollars) Firm 1 180 350 510 660 800 930 1,050 Firm 2 120 250 390 540 700 870 1,050 Firm 3 150 300 450 600 750 900 1,050 Firm 4 210 340 490 660 850 1,060 1,290 Refer to Table 13-12. Which firm has constant returns to scale over the entire range of output? a. Firm 1 b. Firm 2 c. Firm 3 d. Firm 4

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