Marginal cost curve always cuts the lowest point of the average total cost curve. Do you agree? Explain.

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…

A: Marginal Cost(MC) is the increment in the total cost(TC) due to a unit increment in the amount of…

Q: A production process uses two inputs, labor and capital. If the marginal product of labor per dollar…

A: Marginal productivity refers to the additional output produced by using one more unit of input while…

Q: QUESTION 25 The Marginal Cost curve crosses the Average Total Cost curve at its maximum. True False

A: "Marginal cost represents change in total costs when one more unit is produced while average total…

Q: Among the three stages of production, until what point should one produce considering the law of…

A: The law of diminishing marginal product explains the three stages of production that is applicable…

Q: At what level of production does the marginal cost have the least value? What is the marginal cost…

A: The marginal cost curve is the U-shaped curve.

Q: Explain why the fixed cost has no influence at all on marginal cost.

A: In the short run, a firm will have two types of cost: fixed cost and variable cost. Total variable…

Q: When marginal cost exceeds average total cost, which of the following must be true?   Question 14…

A: Costs are the expenses that a firm incurs in the form of the purchase of inputs to produce goods and…

Q: oth in the short - run and the long - run , average cost curves are U - shaped for different reasons…

A: Average cost is the per unit cost incurred in the production of a commodity. It is obtained by…

Q: If the average-total-cost curve is falling, what is necessarily true of the marginal-cost curve? If…

A: Costs of production, which comprise expenses of many kinds, are incurred during the production of…

Q: Please define total cost, average total cost, and marginal cost. Explaine how these terms are…

A: Average Total Cost (ATC) shows the cost per unit of production and is calculated by dividing the…

Q: Give two example of fixed cost

A: Cost is the total expenditure incurred by a producer in producing a good or services. Cost has two…

Q: If the average-total-cost curve is falling, what is necessarily true of the marginal-cost curve? If…

A: Total Cost is equal to the sum of both fixed and variable costs. Fixed Cost remains fixed for all…

Q: Describe marginal cost in your own words.

A: Cost accounting is a method of financial management that examines a business's variable and fixed…

Q: What explains the shape of the average and marginal cost curves?  Is it linked to any production…

A: Marginal cost is the measurement of change in total cost with the increment of quantity produced by…

Q: Draw a U-shaped average total cost curve and a marginal cost curve on the same graph.

A: The average total cost describes the overall cost required for the production process which gets…

Q: A manufacturer can produce 5,130 cell phones when a dollars is spent on labor and y dollars is spent…

A: Cost refers to all types of expenses that incur in the production process. It can be variable cost,…

Q: Mr Han Cook says that marginal cost is just a funny name for average total cost. What do you think…

A: The marginal cost of production is the difference in total production costs that results from…

Q: What is sunk cost? Provide an example of a sunk cost. Why are such costs irrelevant in making…

A: Costs refer to the expenses which are made by the firms in the production of goods, and services.…

Q: What is the average product doing when the marginal product is decreasing? Why?

A: Average Product (AP): Average product represents the average output produced per unit of input. It…

Q: Define total cost, average total cost, and marginal cost. How are they related?

A: Production prices ar the expenses incurred by a firm once it manufactures a product or provides a…

Q: Why is the short run marginal cost curve U- Shaped?

A:

Q: "Money cost and the real cost don't coincide"? Comment on this statement

A: The term "total cost" typically refers to the overall cost associated with a product, or service. It…

Q: Can total cost of the firm be zero? if yes what's the production point at this level

A: Total cost of the firm is the combination of fixed cost of the firm such as rent of the workplace…

Q: Cost curves in the long run differ from cost curves in the short run.   This is true right.

A: YES the statement that "Cost curves in the long run differ from the cost curves in the short run" is…