Determine if the statements and expressions regarding costs are true or false.TrueFalseAll costs are either fixed or variable.Average fixed cost is always higher than average variable cost.When fixed costs are positive, the average fixed cost curve is downward-sloping.The ATC is always greater than or equal to AVc.FC + VCThe ATC crosses the MC at the lowest point on the MC.ATC =QThe ATC is rising when the MC is below the ATC.The ATC is increasing whenever the MC is increasing.The VC curve is modeled as a horizontal line.MC refers to the change in total cost associated with the production ofanother unit.TC = FC + VC + MC

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Joe quits his computer programming job, where he was earning a salary of $70,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $20,000 per year. In his first year of business he has the following expenses: salary paid to himself, $45,000; rent, $0; and other expenses, $40,000. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.) The accounting cost of Joe's business is $ (Enter your response as an integer.) es Get more help Clear all Check answer
What is the term for the change in total cost resulting from a one-unit increase in production? average fixed cost opportunity cost average variable cost marginal cost
Consider the following cost function (C): C= 0.25q3 - 4q? + 75q + F. The equation for average cost (AC) is: AC = |. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) The equation for variable cost (VC) is: Vc=. (Properly format your expression using the tools in the palette.) The equation for marginal cost (MC) is: MC =. (Properly format your expression using the tools in the palette.)
See the cost information in the table below. The marginal cost of the 5th unit is Quantity produced/day Total Cost Variable Cost 0 $100 0 1 $150 $50 2 $175 $75 3 $225 $125 4 $300 $200 5 $400 $300 6 $550 $450
Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale. Find and graph the cost,average cost, and marginal cost functions. Interpret the graphs andexplain the idea of diminishing returns.
fixed cost is the same at each output level except when no output is produced. when a firm produces no output,there are no fix cost. true or false? explain
The cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $15,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.) Output (microchips per day) Total Cost of Output Average Variable Cost ($) Average Fixed Cost ($) Average Total Cost ($) 0 $15,000 − − − 25,000 65,000 50,000 100,000 75,000 155,000 100,000 225,000 125,000 330,000 150,000 470,000
The fixed cost per unit is equal to: Multiple choice question. average variable cost. average total cost. average fixed cost. marginal cost.
A firm's total variable cost increases from $4,000 to $4,020 as the firm increases its output from 400 to 401 units. What is the marginal cost of producing the 401st unit? MultipleChoice a)$10 b)$4,000 c)$20 d)$4,020
Consider the following cost information for a pizzeria: Quantity (Dozens of pizzas) 0 1 2 3 4 5 6 The pizzeria's fixed cost is $ Total Cost Variable Cost (Dollars) (Dollars) 300 0 350 50 390 90 420 120 450 150 490 190 540 240

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