Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 7, Problem 11SQ
To determine
The point where the diminishing returns sets in.
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Students have asked these similar questions
If the marginal cost is above the average cost at a certain level of production and the firmdecides to increase output, then:a. The average cost will increase but the marginal cost will decrease.b. Both the average and the marginal cost will increase.c. The average cost will increase but the average cost will decrease.d. Both the average and the marginal cost will decrease.
1a.
Define average product and marginal product. Briefly explain reasons for a diminishing marginal product.
b.
What are three stages of production? Which stages reflect a firm’s observed behavior versus experimental situation? Briefly justify your answer.
A) What is the differences between marginal product and marginal cost. Write short note and
support your answer by graph.
Chapter 7 Solutions
Micro Economics For Today
Ch. 7.5 - Prob. 1YTECh. 7 - Prob. 1SQPCh. 7 - Prob. 2SQPCh. 7 - Prob. 3SQPCh. 7 - Prob. 4SQPCh. 7 - Prob. 5SQPCh. 7 - Prob. 6SQPCh. 7 - Prob. 7SQPCh. 7 - Prob. 8SQPCh. 7 - Prob. 9SQP
Ch. 7 - Prob. 10SQPCh. 7 - Prob. 11SQPCh. 7 - Prob. 1SQCh. 7 - Prob. 2SQCh. 7 - Prob. 3SQCh. 7 - Prob. 4SQCh. 7 - Prob. 5SQCh. 7 - Prob. 6SQCh. 7 - Prob. 7SQCh. 7 - Prob. 8SQCh. 7 - Prob. 9SQCh. 7 - Prob. 10SQCh. 7 - Prob. 11SQCh. 7 - Prob. 12SQCh. 7 - Prob. 13SQCh. 7 - Prob. 14SQCh. 7 - Prob. 15SQCh. 7 - Prob. 16SQCh. 7 - Prob. 17SQCh. 7 - Prob. 18SQCh. 7 - Prob. 19SQCh. 7 - Prob. 20SQCh. 7 - Prob. 21SQCh. 7 - Prob. 22SQCh. 7 - Prob. 23SQCh. 7 - Prob. 24SQCh. 7 - Prob. 25SQ
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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
- What is a long-run average cost curve?arrow_forwardWhich of the following statements correctly explains the average cost and the marginal cost of production? a. Marginal cost is equal to the profit- maximising price set by a firm that produces a differentiated good. b. Average cost is the vertical intercept of the total cost curve. C. Marginal cost is calculated as the total cost divided by the quantity d. Average cost is at its minimum when it is equal to marginal cost. e. Marginal cost is always higher than average cost.arrow_forward1. Please answer the following questions: a. Explain how input, output and cost are interrelated. b. Explain the meaning of Marginal Cost.arrow_forward
- A firm is producing 20 units with an average total cost of $25 and a marginal cost of$15. If it were to increase production to 21 units, which of the following must occur?a. Marginal cost would decrease.b. Marginal cost would increase.c. Average total cost would decrease.d. Average total cost would increasesarrow_forwardWhich of the following statement is correct? a. Marginal cost will equal average total cost when marginal cost is at its lowest point. b. When marginal cost is less than average total cost, average total cost will rise. C. When marginal cost is greater than average total cost, average total cost will fall. d. Marginal cost will equal average total cost when average total cost is at its lowest point.arrow_forwardA firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it increases production to 21 units, which of the following must occur? a. Marginal cost will decrease. b. Marginal cost will increase. C. Average total cost will decrease. d. Average total cost will increase.arrow_forward
- Which type of cost does depend on a firm's output? 1.marginal cost 2.total cost 3.variable cost 4.all of the abovearrow_forwardAverage total cost, average variable cost marginal cost and marginal product b. The relationship between marginal product and marginal cost is reciprocal or opposite. Why is it so? Explain.arrow_forwardWhich of the following is true of the relationship between Average Cost and Marginal Cost Select one: a. None of the answers given b. Average increases when marginal cost decreases c. Average costs decreases when marginal cost increases d. Average costs increases when marginal cost increasesarrow_forward
- UNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE COST AVERAGE VARIABLE COST TOTAL FIXED TOTAL AVERAGE TOTAL MARGINAL COST COST COST COST 012345678 0 $1 $2 6 $1 2 15 $1 27 $1 37 $1 45 $1 50 $1 52 $1 50 $1 ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ $2 $2 $2 $2 $2 $2 $2 $2arrow_forwardDiminishing marginal product explains why, as a firm’s output increases.a. the production function and total-cost curve both get steeper.b. the production function and total-cost curve both get flatter.c. the production function gets steeper, while the total-cost curve gets flatter.d. the production function gets flatter, while the total-cost curve gets steeper.arrow_forward
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