Case: The marginal cost of production is greater than the average variable cost. Question: Determine whether the average variable cost is increasing or decreasing & Why?

Q: Question:  What are the kinds of cost which firm face in short run. Explain theoretically and…

A: Short run is the time period wherein some inputs are held fixed while other inputs are variable. In…

Q: Marginal cost intersects average total cost at minimum average total cost. True False

A: The price curve always intersects the typical total cost curve at its lowest point because the…

Q: 1. Show and explain the relationship between total cost, marginal cost and average variable cost

A:

Q: Economics Question: Explain the concept of "economies of scale." How does it influence a firm's…

A: This question asked us to explain the concept of "economies of scale," its influence on a firm's…

Q: Capital (K)  Labor (L) Total Product (TP) total fixed cost (TFC) total variable cost (TVC)…

A: 1.1. Assume that the cost of capital is 20 and the cost of labor is $10. Total fixed cost (TC) can…

Q: Question 2 2a(I)  A snowboard company currently hires 10 skilled employees who are paid a weekly…

A: The total cost of production is the aggregate of fixed and variable costs that are spent in the…

Q: What type of cost is the tuition paid for college credit after the census date when a refund is no…

A: There are different types of cost, fixed cost, variable cost, opportunity cost.

Q: Which of the following statements about average product and marginal product is correct? (A) If…

A: Average product is the total product which is produced divide by the total number of variable inputs…

Q: Question 3 NOTE: Economists distinguish between two types of costs: Accounting cost and Economic…

A: Accounting costs are the actual charges that a business incurs in producing and selling its products…

Q: j. What is happening to average total costs when they equal marginal costs? k. Marginal costs equal…

A: The table including the variable input, total product, price of input and Total Fixed cost is given…

Q: Which of the following relationship is correct? When marginal cost (MC) starts to increase; average…

A: MC is the slope of TC(total cost). ATC is the per unit cost of product obtained by the ratio of TC…

Q: Often the marginal cost (MC) is initially decreasing as Q rises because... the marginal productivity…

A: Marginal product refers to change in total output due to an addition of one more unit of input.

Q: not use ai please

A: Total Cost (TC):The sum of all costs involved in production, which includes both fixed and variable…

Q: 1. Define the following terms: production function, average product, marginal product, law of…

A: Note:- Since you have posted multiple subparts, as per the guidelines we can solve only first 3…

Q: Labour (workers) Quantity of frozen yogurt (CUPS) FC (FIXED COST) VC (VARIABLE COST) TC (TOTAL COST)…

A: Variable costs are expenses that change in direct proportion to the level of production or business…

Q: (a) Calculate the marginal (physical) product of the third worker. (b) Define the law of diminishing…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Ex. Of AFC... J.B & Co. has the following fixed costs: - Machinery: 25k - Rent: 15k - Vehicle: 2k -…

A: Introduction: Total cost: It refers to the all expenses that incur in the process of production.…

Q: Would a decrease in the wage rate (or some other short-run variable input price) shift down the…

A: Marginal Cost Curve: A graphical representation showing the additional cost incurred by producing…

Q: 2. Assume that the marginal cost of production is greater than the average variable cost. Can you…

A: Formula to calculate AVC and MC:- AVC=TVCQMC=TCn-TCn-1 where; TVC= Total Variable CostTC=Total…

Q: THE Blank 1: IS THE PER UNIT COST OF PRODUCTION OBTAINED BY DIVIDING THE TOTAL COST BY THE TOTAL…

A: It is the aggregate money expenditure caused by the firm on every one of the factors to produce a…

Q: 2. Compute the average and marginal product of labor? Amount of Total Average Product Marginal…

A: Average product = Total output / Labor Marginal product = Change in total output / Change in labor

Q: Question 6. Firm theory (a) For a firm, the marginal product of capital is 3.5. This year, its…

A: In economics, a production function is a mathematical equation that expresses the maximum possible…

Q: What is the marginal physical product (MPP) of a variable input, like labor?How do you derive the…

A: The marginal physical product (MPP) is the change in output caused by a change in the amount of…

Q: When examining the costs faced by a business, explain how economists distinguish between the short…

A: First part The contrast between the short and long runs is critical in economics. It turns out that…

Q: q3- The average total cost curve is increasing when marginal cost is:   Select one: a.…

A: The relationship between ATC and MC is: When the MC curve is above the ATC curve then the ATC…

Q: Why does the marginal cost of production typically increase as the amount of output produced…

A: Marginal cost is the additional cost incurred to produce an additional unit of output.

Q: If the price of the product is GH¢2.00 and cost per unit of labour is GH¢10.00, Complete the table…

A: The labor cost per unit is obtained by multiplying the direct labor hourly rate by the time required…

Q: 2. Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the…

A: In microeconomic firm theory, the focus lies on analyzing firms' strategies concerning production,…

Q: Quantity of output (# of cookies per hour) Total product curve Quantity of Input (# of workers) .…

A: The figure you sent shows a total product curve, which shows the total number of cookies produced as…

Q: Question 3 If a firm is able to double output when it doubles input, it has... Group of answer…

A: "Returns to scale refers to the rate at which output produced changes when all inputs in the…

Q: Question 2 2a(I)  A snowboard company currently hires 10 skilled employees who are paid a weekly…

A: The total cost of the firm is calculated by adding the variable costs- the total wages, and the…

Q: Average variable cost is always increasing as output increases whenever... Group of answer choices…

A: Variable cost refers to the cost that changes as output or production changes. Average variable cost…

Q: stlon 24 One of these intersects the horizontal axis and may reach the negative area: O Total…

A: Question 24 The answer is Option 2 - Marginal Product Therefore, Marginal product intersect the…

Q: QUESTION 19 Assume short-run production. Select the statements that are true. O The marginal cost at…

A: Marginal cost is the exchange in total production cost that comes from making or producing one extra…

Q: 22. Suppose an artist put on 5 concerts in Korea last month for an average total cost of $1 million…

A: Average Total Cost(ATC) is the total cost divided the total quantity. ATC=total costtotal quantity…

Q: In the, between what two levels of output does one first observe the law of diminishing returns?…

A: Law of diminishing returns states that when more and more units are added in the process of…

Q: A firm's production takes the form: F(L,K) = 2L√ √K (Assume K is on the y-axis when graphing) The…

A: The production function shows the relationship between the inputs used and output produced.  The…

Q: Consider a company using the economic production quantity model. a. Derive the percent change of…

A: The total cost for the economic production quantity model is can be derived by finding out the total…

Q: Cost (dollars) 150 100 50 0 5 10 D $15 20 B Output (teapots per day) 5. Refer to Figure above. Which…

A: A. The vertical gap between curves B and C is equal to average variable cost. [FALSE]The vertical…