Determine if the statements and expressions regarding costs are true or false. The ATC is always greater than or equal to AVC. The ATC is rising when the MC is below the ATC. ATC = FC + VC/Q

Q: Suppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If…

A: For the constant return to scale production technology, the average cost of production remains the…

Q: For the cost function C(x) 125x + 375 x+7 where C is in dollars and x is the number produced in…

A:

Q: Calculate the value of variable cost for the when the fixed cost is $22 and the total cost is given…

A: We know that the total cost of the firm is given as :- Total fixed cost which remains same…

Q: Kevin quits his computer programming job, where he was earning a salary of $60,000 per year, to…

A: Given the give up salary = $60000 Rent = $24000 Salary paid to himself = $40000 Rent = 0 Other…

Q: Assume that the situation can be expressed as a linear cost function. Find the cost function.…

A: The total cost function comprises of variable costs and fixed costs. The fixed costs remain the same…

Q: (Figure: Market Power) Based on the demand curves for four sellers, which of the following firms has…

A: Answer (20): Part 1:  A firm in perfect competition has no market power and they are price takers.…

Q: Economic cost and accountant cost are not equal. Why aren’t they equal? Explain with example

A: Maintaining a business demands that you keep a heartbeat on the monetary components that influence…

Q: The long run average cost curve is U shaped because up to a certain point you have excess K/L and…

A: Total cost refers to the total amount of expenditure incurred by the firm ti produce the given…

Q: In the long run, the total cost function will be: Selected answer will be automatically saved. For…

A: Long run is the time period where no inputs are fixed instead all inputs are variable.  In short run…

Q: When marginal cost curve is below an average cost curve, marginal cost O may be increasing or…

A: There is a significant relationship between the marginal cost curve and average cost curve as the…

Q: For a production function at a given level of output in the short run, the marginal product of labor…

A: Marginal product of labor refers to the extra unit of output produced when an additional unit of…

Q: Determine the cost change factor in the following cases and identify the types of costs in them. The…

A: Cost oa production is the monetary value incurred in the process of production on inputs . There are…

Q: Find Average fixed cost with the following information:- Total fixed cost = $350 Output produced =…

A: The data presented in the question above is:- Total fixed cost = $350   Output produced = $70 The…

Q: You are given the following long-run cost function: TC = 150Q - 20Q2 + 1.8Q3 What level of Q will…

A: Economies of scale is where slope of long run average cost <0, while disceconomies of scale comes…

Q: a) You have been given the following information on costs. Segregate them into fixed and variable…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Which cost concept includes both explicit and implicit costs? a) Total cost b) Variable cost c)…

A: In financial matters, understanding various sorts of costs is significant for dissecting business…

Q: The average cost function for skateboards. AC = (q^3 - 30q^2 + 350q) / q AC = q^2 - 30q + 350 Draw…

A: The graph of the average cost function AC=q2−30q+350, along with labeled critical points and the…

Q: Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant)…

A: Marginal cost is the measurement of change in the total cost with the increment of one unit of…

Q: Which one of the following would be regarded as a variable cost for a firm?   Select one: a. the…

A: Meaning of Variable Cost: The term variable costs are those cost which changes or fluctuates, as…

Q: 2) For the following cost functions calculate and plot the average fixed costs, average variable…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: cost curve creases, does not shift; shifts upward shifts upward; shifts upward shifts upward; does…

A: Cost refers to all the expenses that incur in the process of production of goods or services. There…

Q: A computer company produces hardware and software using the same plant and labor. The total cost of…

A: Economies of scope occur when producing multiple products together reduces the total cost, as shared…

Q: Explain the general shape of the long run cost curves in relation to economies and diseconomies of…

A: The shape of long run cost curve changes depending on the returns to scale.

Q: mine if the The ATC is rising when the MC is below the ATC. ATC= True FC + VC Q Answer Bank All…

A: Cost, in like manner use, the financial worth of labor and products that makers and shoppers buy. In…

Q: Which of the following statements regarding average fixed costs is correct? Select one : A) They…

A: The fixed cost is the short-run concept. In the short run, factors of production like land, capital,…

Q: Output Total Cost 8) $10 20 28 3. 38 4 53 73 6. 98 Refer to the provided table. The total fixed cost…

A: Since you have asked multiple questions, we have answered the first question for you. If you want…

Q: Justify the statement. T/F  Variable cost change with the change in the level of output in a…

A: Cost is the monetary value of the resources that are given up or depleted in order to accomplish a…

Q: Austin's total fixed cost (TFC) is $350/month at his cupcake bakery.  Austin employs 10 workers and…

A: The amount of output produced determines the fluctuation in variable costs. Labor costs are one type…

Q: When Ajax Co. produced 3 units of output per week, its total fixed cost was $100 and total variable…

A: Total cost (TC) is the overall expense incurred by the firm in producing its goods or services. It…

Q: If variable costs for a firm is $660, the average total cost is $8, and the firm sells 120 units,…

A: Variable cost as the name suggests changes with respect to the output produced. For example- the…

Q: When the ATC curve is falling, MC is ATC. less than greater than equal to

A: Total cost is the cost of producing all the goods.  Average total cost is the cost of production per…

Q: What is the relation between fixed costs and total costs?   Question 5 options:   Two of the other…

A: Fixed cost is a component of total cost and is defined as the cost of production that does not…

Q: Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.…

A: The cost function refers to a function of the prices of inputs and quantity of output whose value is…

Q: Which of the following is an example of an implicit cost? A) the cost of fuel and materials. B) the…

A: Implicit cost is also called opportunity cost. It is the cost that is incurred but not reported…

Q: Compare and contrast: a) Average fixed cost vs. Total fixed cost b) Total variable cost vs. Average…

A: Differentiate between Average fixed cost and Total fixed cost:- Average fixed cost Total fixed…

Q: Joe quits his computer programming job, where he was earning a salary of $70,000 per year, to start…

A: Cost(C) refers to the total monetary value of resources used to produce a good or service.Explicit…

Q: Find average variable cost given:- Total variable cost is $490 and the output is 30 units

A: The data presented in the question above is:- Total variable cost = $490  Output = 30 units  Average…

Q: how do you know the total variable is 50 when finding the total fixed cost

A: TC = AC * Q ------------------- MC is a change in TC due to changing quantity by one unit.  MCn =…

Q: Which of the following are relevant to a firm’s decision to increaseoutput: (a) short-run average…

A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…

Q: Total Fixed Cost (TFC), Total Variable Cost (TVC), Total Cost (TC), and the Average Total Cost (ATC)…

A: The fixed cost refers to the cost that does not change with change in level of output. On other…

Q: Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale.…

A: According to the question, C(x) = ½ X^2 AV(x) = C(x)/x           = ½ x MC(x) = C’(x)             =x

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.