Q45When a factory is operating at the level ofoutput where its short-run average totalcost is at its minimum, ...а.Marginal cost is at a minimum.b.Average fixed cost is at a minimum.С.The factory is operating at its capacity.d.More of the variable factor of productionshould be employed.е.Average variable cost is at a minimum.

We know that Short-run average expense (SRATC/SRAC) approaches average fixed expenses in addition to…

Answered: Q45 When a factory is operating at the…

Business

Economics

Q45 When a factory is operating at the level of output where its short-run average total cost is at its minimum, ...

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...

See similar textbooks

Related questions

Q: e) The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC is the…

A: The short-run cost function of a company is given as: Total Cost: TC = 200 + 55q where; TC = total…

Q: Use the table below to answer the following question. Units of Output Total Fixed Cost Total…

A: Marginal cost is the change in total cost due to per unit change in production. MC cuts AC curve and…

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: A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to…

A: Introduction: Marginal cost: the marginal cost refers to the additional cost that is used to produce…

Q: 19) At what output is the value for the new AC at its minimum?

A: Average Cost (AC) is the total cost of producing a certain quantity of output divided by the…

Q: Consider a company whose long run total cost function is TC= 200q -20q^2 +q^3 and whose marginal…

A: MC cuts intersect ATC at its minimum point. So, at MC = ATC we get the quantity level at which ATC…

Q: A firm’s estimated long-run total cost function is LRTC = 160Q - .6Q2 + .002Q3. Suppose the firm is…

A: Cost elasticity refers to the responsiveness of cost with respect to the change in output level . It…

Q: The total cost of producing one unit is $100 The total cost of producing two units is $150 At a…

A: It is given that, the total cost of production of 1st unit = $100. The total cost of production when…

Q: A local coffee shop has the following production function of cups of coffee, ? = ?3/4?1/2. The firm…

A: The answer to the question is as follows :

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: In The Cost Graph for a typical firm, as quantity increases, what is the relationship between…

A: The visual depiction of the relationship between the cost of production and the quantity of goods or…

Q: Luis has a factory that produces construction tools in CDMX. Knowing that your marginal cost…

A: The firm produces output in the form of the various goods and services which has various costs…

Q: Output (q) VC MC AFC AVC AC 1 $100 $64 $164 $64 $100.00 $64.00 $164.00 2 112 212 48 50.00 56.00…

A: The table is completed below , where , FC: Fixed Cost VC : Variable Cost C: Total Cost MC :…

Q: The fixed costs of a firm are $100. When the firm produces one unit the total cost is $150. The…

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

Q: If the short-run total cost function for a firm is TC = 3,000+100Q, Given: TC = 3,000 + 100Q TC =…

A: Marginal cost (MC) = dTC/dQ = 100

Q: When the quantity of a variable input is increased from 3 units to 4 units the total output…

Q: A firm has the following total revenue and total cost schedules: TR = $2Q. TC = $5,500 + $1.3Q.…

A: Given:- TR=$2Q TC=$5500+$1.3Q To calculate:- Break even output level and profit at 8600 unit sale=?…

Q: A Chinese high technology manufacturing firm has a production function of q=12L0.20 0.80 (based on…

A: Given Production function: q=12L0.2K0.8 ...... (1) Input prices are w=$2 and r=$8…

Q: A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total…

A: In business, the average total cost, or ATC, is the sum of all product costs divided by the volume…

Q: Complete the following table of short-run fixed costs. (Enter your responses rounded to two decimal…

A: Total cost is the sum of total fixed cost and total variable cost. Fixed cost are the cost that…

Q: Note: Enter your answer withtout the dollar sign ($) For the cost function TC= 520 + 10Q + 5Q2,…

A: The relationship between the total cost of producing an item or service and the level of output is…

Q: 3. Suppose the firm's production function is given by F(K,L) = min (Kt,Lt) (a) Derive the long-run…

A: The fixed proportion production function, f(K,L) =Q= minK13,L13 In this production function, the…

Q: Consider a small photography studio with 6 workers and 3 The total cost of labor and capital is…

A: In economics, the cost of production is defined as the expenditures incurred to obtain the factors…

Q: Average cost with the $300 tax is minimized at a quantity of q = units. (Enter your response rounded…

A: *Answer:

Q: (a) Suppose we have the following production function: Q= Suppose K is fixed in the short- run at…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…

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

A: Based on the provided information and the cost functions, I have filled out the missing data in the…

Q: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,…

A: Here, an improvement in the technology used, would decrease the cost and will shift the cost curve…

Q: A company's marginal cost function is MC(x) (given below), where x is the number of units. Find the…

A: In Economics, marginal cost is the change in the total cost that arises when the quantity produced…

Q: . A firm’s production is represented by the following function: Q = L0.4 K0.6 . The rental rate of…

A: The link between the physical production and the numerous production parameters, or the output to…

Q: The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600…

A: The firms in the market tend to estimate their fixed costs, variable costs, total costs, revenue,…

Q: The Mini-Case "Economies of Scale at Google" describes economies of scale for Google Cloud Storage.…

A: The objective of the following assessment is to evaluate the marginal cost and average cost for the…

Q: Problem 9: Given below is the cost schedule of a firm. Its average fixed cost is 20 when it produces…

Q: Assume a firm's short-run cost function is given by the following expression: C(q) = 2+q+q2 If the…

A: The producer is in equilibrium at the point when MC=MR, at this point the value of producing an…

Q: ips is described in the table that follows -m's fixed costs equal $10,000 per day. Ca e average…

A: Computation with the help of following formula, AVC = VC/O ATC = TC/O AFC = FC/O VC = TC-FC…

Q: I am having trouble finding out the formulas to complete this question: The production function…

A: Production Function : q = -0.6L3 + 18L2K + 10L Wage: w=$100 Rental rate: r=$800 1. Taking capital…

Q: there C is total cost, F is fixed cost, c is a constant and ost, and average cost? Over what range…

A: Given information; C(q) = F + cq Where C is the total cost, F is fixed cost, c is constant, and q is…

Q: a. A firm's long-run total cost can be written as LTC = 3000Q - 50Q2 + (1/3)Q3 and its long-run…

Q: Consider a small photography studio with 8 workers and 5 The total cost of labor and capital is…

Q: Assume the following total cost function: Q Total Cost $75 1 105 2 128 What is the average fixed…

A: Average Fixed Cost (AFC): It is per unit fixed cost. It continuously decreases because the same…

Q: Complete the following table of short-run fixed costs. (Enter your responses rounded to two decimal…

A: The average fixed cost is the fixed cost per unit of output. AFC=TFCq Total fixed cost remains same…

Q: Given a firm's cost function C=F(x) = ax +bx+ d: a. Find the firm's Average cost function (A(x) and…

A: C=F(x)=ax3+bx+d

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.

Q: Use the table below to answer the following question. Units Total Fixed Cost Total Variable of…

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

Q: Consider a small photography studio with 5 workers and 2 printers. The total cost of labor and…

A: The cost of hiring a worker is wage and the cost of using capital is rent. The sum of wage and rent…

Question

Q45
When a factory is operating at the level of
output where its short-run average total
cost is at its minimum, ...
а.
Marginal cost is at a minimum.
b.
Average fixed cost is at a minimum.
С.
The factory is operating at its capacity.
d.
More of the variable factor of production
should be employed.
е.
Average variable cost is at a minimum.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Q45 When a factory is operating at the level of output where its short-run average total cost is at its minimum, ... a. Marginal cost is at a minimum. b. Average fixed cost is at a minimum. c. The factory is operating at its capacity. d. More of the variable factor of production should be employed. e. Average variable cost is at a minimum.
shows the long-run average costs for Inmode, a manufacturer of Internet modems. Quantity per Day Average Cost ($) 1 2 3 85 65 60 45 4 5 6 7 55 60 75 95 120 82 a) At what output is minimum efficient scale achieved? Output: b) With what output do diseconomies of scale begin? Output: |
What is minimum efficient scale? Minimum effcient scale is OA he level of output at which a fim begins to axperience economies of scale. OB. the level of oulput at which the long-nun average cost of production begins to decline. Oc. the level of output at which the long-run average cost of production no longer decreases with output. OD. he level of output at which all diseconomies of scale are exhausted. OE. he level of output at which the marginal cost of production reaches a minimum
B. the rodu g one m Average Variable Cost C. fixed costs divided by output D. total cost divided by output v Marginal Cost QUESTION 5 20 points Save Answer Match each of the following terms and descriptions Constant returns to scale when the average cost of producing each individual unit A. declines as total output increases Diseconomies of scale average cost of producing each individual item increases as В. output increases economies of scale average cost of producing each individual unit remains C. constant as output increases Long Run Average Total Cost Curve the relationship between output and costs over the life of a D. business Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit ype here to search W 63°F Ca ) ENG 8:10 PM 10/18/2021 hp
The figure to the right illustrates the long-run average cost curve for a company that makes motors. Suppose the company produces & thousand moters per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 4 theusand motors, then it experiences Average total cont 45.00 44.00 40 00 36.00 32.00 28.00 24.00 20.00 16.00 12:00 5.00 4.00 0.00 Long-nun average cost 4610 12 14 16 18 20 Quantity (motors per month in 1,000)
Q48 Marginal cost is defined as the... a. Change in total cost resulting from an additional unit of output. b. Cost of an additional unit of a variable factor of production. c. Difference between average total cost and average variable cost. d. Change in fixed cost resulting from an additional unit of output. e. Cost per unit when the firm is operating at capacity. Clear my choice
When average product increases, which short-run cost variable also changes? The output range over which average product increases is the output range over which A. marginal cost decreases В. average total cost decreases C. marginal cost increases D. average variable cost decreases When average product increases, which short-run cost variable also changes? The output range over which average product increases is the output range over which А. marginal cost decreases В. average total cost decreases С. marginal cost increases D. average variable cost decreases
Suppose a firm is producing 100 units of output, incurring a total cost of $10 000 and total variable cost of $6000. It can be concluded thut average fised costis O $40. Os80. O $100. $160.
Joe quits his computer programming job, where he was earning a salary of$70,000per year, to start his own computer software business in a building that he owns and was previously renting out for$24,000per year. In his first year of business he has the following expenses: salary paid to himself,$42,500;rent, $0; and other expenses,$10,000. Find the accounting cost and the economic cost associated with Joe's computer software business. Accounting cost: ____ Economic Cost: _____
1. Draw the short run marginal cost curve for a firm with eventually diminishing marginal product. Then, draw an associated average variable and average total cost curve. Indicate the quantity associated with minimum average variable and average total cost. 2. Draw a long run average cost curve that, at different quantities, exhibits economies of scale, diseconomies of scale and constant returns to scale. Indicate the quantities associated with each regime.
In the table, the average variable cost at 2 units of output is Output (balloons per hour] Total Cost (dollars per hour) $4.00 $7.00 $8.00 $12.50 $17.20 $22.00 $29.00 5 O A. $1.00. OB. $2.00. OC. $4.00. OD. $4.80. 1234t n6