If marginal cost is less than the average variable cost and output increases, average total cost ________ and average variable cost _______. (i) decrease; increase (ii) increase; decrease (iii) increase; increase (iv) decrease; decrease

Q: What is the difference between average product of labor and marginal product of labor? (b) Explain…

A: Average Product of Labor is calculated by dividing the total output produced by the firm with the…

Q: Define different types of costs. Explain Fixed and Variable costs with the help of examples.

A: Types of cost in short run Fixed Costs (FC) It is the cost of fixed factors.The costs which don’t…

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: ATC is decreasing, is ATC is above (greater), equal, or less (below) than MC? ________ choose one…

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Q: 1. Suppose a cost function is defined as C(q) = 8 + 13q + 15q^2 (a) Find the ATC, AVC, AFC and MC…

A: Average total costs: Economic costs involve not just the accounting costs but also the opportunity…

Q: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: If marginal cost is greater than average total cost, then average total cost must be increasing.…

A: The marginal cost curve is downward sloping when it is below ATC. At the same time ATC is also…

Q: Problem 2, From the data given below, calculate: O Average fixed cost, (ii) Average variable cost,…

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Q: A  large-scale producer selling a wide range of soft drinks. (a) Outline and explain the sources of…

A: Diseconomies of scale occur when a business grows so large that the costs per unit increase. It…

Q: Night Shades. Incorporated, manufactures biotech sunglasses. The variable materials cost is $12.14…

A: Variable cost in economics means to expenses that vary with changes in the level of production or…

Q: Below is the cost structure for Syarikat Maju Jaya. Output (unit) Total Cost (RM) Total Fixed Cost…

A: 1. We can calculate Total variable cost by subtracting total fixed cost(RM) from Total cost(RM) for…

Q: Accounting and economic cost Economic cost

A: Accounting Cost = Accounting costs measure the financial value of taking an action. They are the…

Q: Average total cost intersects marginal cost at minimum marginal cost. True False

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Q: Which of the following statements is (are) correct? (x)  In the short run, if a firm produces…

A: Fixed cost is the cost incurred by the producer for the purchase of fixed inputs. These costs do not…

Q: lassify each individual element of cost according to its behavior pattern (fixed, variable, or…

A: Fixed costs, variable costs, and semi-variable costs are types of costs that are classified based on…

Q: (a) Explain clearly the difference between accounting cost and economic cost. (b) Explain whether…

A: Running a company necessitates a constant awareness of the financial factors that influence net…

Q: Which of the following measures of cost is best described as "the cost of a typical unit of output…

A: Average Variable Cost (AVC): This is the variable cost per unit of output. It is calculated by…

Q: Which of the following best defines a sunk cost?   A. Costs that have already been incurred and…

A: The question focuses on identifying the most accurate definition of a sunk cost. Sunk costs are a…

Q: a large-scale producer selling a wide range of soft drinks. (a) Outline and explain the sources of…

A: Diseconomies of scale occur when a business grows so large that the costs per unit increase. It…

Q: Suppose a company incurs the following costs: labor, $2,000; equipment, $1,400; and materials,…

A: The total accounting cost includes explicit costs, which are the actual out-of-pocket expenses…

Q: There is economies of scale if the average cost of production is lower for bigger scale of…

A: At the marketplace, firms produces output at different scale based on their market share, ability…

Q: What is the term for the change in total cost resulting from a one-unit increase in production?…

A: please find the answer below.