Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 8, Problem 9WNG
(a)
To determine
Calculate the value of output (Q).
(b)
To determine
Calculate the value of marginal cost.
(c)
To determine
Calculate the average fixed cost.
(d)
To determine
Reason for downward sloping average fixed cost curve.
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Students have asked these similar questions
Which of the following is a correct statement about the relationship between average cost (AC) and marginal cost (MC)?
A) If AC exceeds MC, then AC is falling.
B) If AC is at a minimum, then MC is also.
C) If AC = MC, then total cost is at a maximum.
D) If TC is declining then AC is negative
a) Complete the following table by filling in the fixed cost (FC), variable cost (VC), total cost (TC) and marginal cost (MC) columns.
b) For what levels of output is the marginal cost decreasing? For what levels of output is it increasing? What is the level of output at which marginal cost equals average cost?
c. Why do we assume that marginal cost first decreases then increases?
The cost curve for producing widgets passes through the following points and is piecewise linear in between. Solve, f. What is the fixed cost per unit for producing 1,000 widgets? g. What is the variable cost per unit for producing 1,000 widgets?
Chapter 8 Solutions
Microeconomics
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - Prob. 3STCh. 8.2 - Prob. 4STCh. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.4 - Prob. 1STCh. 8.4 - Prob. 2STCh. 8.4 - Prob. 3ST
Ch. 8.4 - Prob. 4STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8.5 - Prob. 3STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QPCh. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNGCh. 8 - Prob. 7WNGCh. 8 - Prob. 8WNGCh. 8 - Prob. 9WNG
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Similar questions
- The cost curve for producing widgets passes through the following points and is piecewise linear in between. Solve, a. What is the fixed cost of producing 600 widgets? b. What is the variable cost of producing 600 widgets? c. What is the cost per unit if only 400 widgets are produced?arrow_forwardThe marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the average-variable-cost (AVC) curve at their maximum points. Select one: True O Falsearrow_forward4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) 120 1 210 2 270 3 315 4 380 5 475 630arrow_forward
- Question1: a. Find the first, second and third derivatives of the following total cost function: TC(Q)=Q3 /5−8Q2 + 5/2 Q+180 b. Find the average cost, AC = TC/Q, and its minimum. c. Find the average variable cost, AVC = TVC/Q, and its minimum. d. Show that the marginal cost, MC, curve passes through the minimum of the AC and the AVC curves.arrow_forwardexplain your answers in two or three sentences. a) True or False? Short-run average total cost curves have an “U” shape because of the law of diminishing marginal returns. b) True or False? Long-run average total cost curves have an “U” shape for the same reason that short-run average total cost curves have an “U” shape.arrow_forward
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