Explain why the AVC curve is "U shaped"?

Q: What is Explicit Cost?

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: Frank is a talented gardener who maintains a wonderful garden of flowers and vegetables at his…

A: economic profit and loss are measured as the difference between the revenue earned from selling the…

Q: If marginal physical product is continually declining, what does marginal cost look like?

A: The marginal physical product is the additional output which can be produced by the firm by…

Q: Why is the Average Total Cost curve U-shaped?

A: The average cost (AC) or average total cost (ATC) is the cost per unit of production. The average…

Q: hy does more inputs not necessarily translate into more output?

A: An input is something placed into a framework or interaction, while an output is produced or created…

Q: Why does the AVC curve get closer and closer to the ATC curve without ever touching it?

A: The average variable cost refers to the variable cost per unit of output. The average total cost…

Q: What is the answer for d and e?

A: Introduction ( General terms) The term "marginal private cost" (MPC) refers to the variation in a…

Q: Why does total cost increase faster as output increases?

A: A producer has to incur various types of costs in order to produce goods and services. This includes…

Q: What is the explicit and implicit cost? Can explicit or implicit be used for a business or…

A: Cost refers to the sum of money a corporation spends on making or producing products or services.…

Q: . If economic profit equals accounting profit, what do implicitcosts equal?

A: Basics:- Economic Profit     = Revenue - Explicit Cost - Implicit Cost Accounting Profit  = Revenue…

Q: if the ATC curve is rising, does that mean the MC curve must lie above it? Explain.

A: Marginal Cost: The sum of the total variable cost is the marginal cost because the fixed cost…

Q: What is the difference between explicit and implicit costs in economics?

A: Explicit costs are the immediate, personal installments a business makes to work, like wages,…

Q: What equation shows the relationship of MC to AVC when AVC is rising?

A: Marginal Cost It refers to the change in the total cost due to one unit change in output. Variable…

Q: Time Period at higher wages, more workers will seek to enter the industry, thereby adding to the…

A: The equilibrium wage rate is determined where the demand and supply for labor are equal. The wage…

Q: What are two examples of variable costs?

A: Variable costs depends on the level of output being produced by the firm.

Q: The AVC and the AC curve can intersects each other at any point True/False

A: # The average per unit variable cost isris to be as Average variable cost and the average per unit…

Q: Do AC and AVC intersects each other?

A: Average cost measures the cost incurred by a firm per unit of output produced. Average variable cost…

Q: Stretch the MC, ATC and AVC curves in a diagram. Explain the reason why MC and ATC curve is shaped…

A: The marginal cost (MC) shows the incremental cost incurred when one additional unit is produced. It…

Q: Solve only these two subparts Q) A)What  is the value of AVC at 130 units of output? B)At which…

A: Introduction Average variable cost is the per unit cost. It is also defined as when total variable…

Q: When thinking about cost analysis in Microeconomics, what are the real-world problems that occur…

A: Economies of scale are cost savings that can arise when a business expands the production scale and…

Q: Why does SMC curve cut AVC curve at the minimum point of AVC curve?

A: The change in total cost per unit of change in output is known as short-run marginal cost (SMC).…

Q: how much were implicit costs

A: Profits refers to the income earned by the firm after accounting for all the expenses. These…

Q: Suppose the government has imposed a price floor on the market for soybeans. Which of the following…

A: Price floor is minimum price that must be paid for the good. It is binding when it is set above the…

Q: do fast i will 10 upvotes.

A: Step 1: Identify Given ParametersGiven parameters include the moment of inertia I=2 kgm2, torsional…

Q: Give an quantitative example of marginal and average cost.

A: Average cost is the equivalent of total fixed cost (TFC) and total variable costs (TVC) divided by…

Q: What should the value of "a" be if in the mixed strategy equilibrium we found out player 2 assign…

A: In a mixed strategy equilibrium, the chance assigned to each method with the aid of the participant…

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Incremental cost of production is the increase in total cost due to increase in the production…

Q: What is sunk cost? Provide an example of sunk cost other than one from the book and explain it. Why…

A: Cost is the expenses incurred by a person on acquiring any good or service. It is the payment done…

Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…

A: The Long-run average cost curve is defined as a curve which portrays a firms lowest cost per unit at…