If marginal cost is less than average variable cost and output increases, average total costand average variable cost.Select one:OA.decreases; increasesB.increases; decreasesC.increases; increasesD.decreases, decreases

The marginal (MC) cost is the extra cost incurred due to the production of an additional unit of…

Answered: If marginal cost is less than average…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 6SQP

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Similar questions

Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Total variable cost as output increases, and total fixed cost as output increases Select one: A. increases; does not change B. increases; increases C. increases; decreases D. does not change, does not change
Which of the following is the extra, or additional, cost of producing one more unit of output? Select one: a. Marginal cost Ob. Average fixed cost Oc. Total variable cost Od. Average variable cost
Jane’s Juice Bar has the following cost schedules:a. Calculate average variable cost, average total cost, and marginal cost for eachquantity.b. Graph all three curves. What is the relationship between the marginal-cost curveand the average-total-cost curve? Between the marginal-cost curve and the averagevariable-cost curve? Explain.
Macmillan Learning a. In the accompanying diagram, place the points labeled Minimum AVC and Minimum ATC in their correct places. Marginal cost, average cost ($ per unit) True False Minimum AVC Minimum ATC F MC Quantity b. Average variable cost reaches its minimum point at a lower level of output than average total cost.
Mboth the marginal cost and the average variable cost curves are U-shaped, at the minimum point of the average variable cost curve, the marginal cost curve must be greater than average total cost. less than average total cost. equal to averagn total cost. at its minimum.
As long as marginal cost is below average variable cost or average total cost , then average variable cost and average total cost ____ when output is increased. a. rises b. intersects c. falls d. are constant
K When marginal cost (MC) is falling, which of the following must be true? OA. Average variable cost (AVC) is increasing. OB. Average variable cost (AVC) is falling OC. Average total cost is increasing. O D. Average fixed cost (AFC) is increasing.
The difference between variable cost and fixed cost is that Select one: a. fixed cost is paid even when there is no outout b. fixed cost is always falling as output increases C. variable cost only increases for a while and then it decreases d. fixed cost is always less than variable cost
Which of the following costs will not change as output changes? 1. A. marginal cost 2 B. total variable cost 3. C. average variable cost 4. D. total fixed cost
Total variable cost as output increases, and total fixed cost as output increases. Select one O A. increases, decreases B does not change, does not change C increases, increases D. increases, does not change
When output is zero, total fixed cost is zero. O True O False

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If marginal cost is less than average variable cost and output increases, average total cost and average variable cost. Select one: OA. decreases; increases B. increases; decreases C. increases; increases D. decreases, decreases