22. Suppose that the term C in the total cost function changes to a new figure that is twice as large. Thinking about the cost curves drawn on a graph, we would expect the following to happen (choose the best answer): A) B) C) D) E) F) 23. Use the information about the total cost function supplied above. The marginal cost curve will shift or rotate whenever (choose the best answer): A) B) Both the average variable cost curve AND the average cost curve shift (or rotate) down. Both the average variable cost curve AND the average cost curve shift (or rotate) up. The average cost curve shifts (or rotates) down. The average cost curve shifts (or rotates) up. The level of quantity where average cost is minimized falls. The level of quantity where average cost is minimized rises. Statements A & E are true. Statements B & F are true. Statements C & E are true. Statements D & F are true. C) D) E) The A term changes. The B term changes. The C term changes. The D term changes. All of the above statements are true.

22. Suppose that the term C in the total cost function changes to a new figure that is twice as large. Thinking about the cost curves drawn on a graph, we would expect the following to happen (choose the best answer): A) B) C) D) E) F) 23. Use the information about the total cost function supplied above. The marginal cost curve will shift or rotate whenever (choose the best answer): A) B) Both the average variable cost curve AND the average cost curve shift (or rotate) down. Both the average variable cost curve AND the average cost curve shift (or rotate) up. The average cost curve shifts (or rotates) down. The average cost curve shifts (or rotates) up. The level of quantity where average cost is minimized falls. The level of quantity where average cost is minimized rises. Statements A & E are true. Statements B & F are true. Statements C & E are true. Statements D & F are true. C) D) E) The A term changes. The B term changes. The C term changes. The D term changes. All of the above statements are true.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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