QUESTION 19Marginal cost is the:O C. change in average variable cost thatresults from producing one moreunit of outputO D. change in average total costthat results from producingO A. rate of change in total fixed cost thatO B. change in total cost that resultsresults from producing one more unitof outputfrom producing one more unitof outputone more unit of output

QUESTION 19 Marginal cost is the: O B. change in total cost that results from producing one more unit of output OC. change in average variable cost that O D.change in average total cost results from producing one more unit of output O A. rate of change in total fixed cost that that results from producing results from producing one more unit of output one more unit of output

QUESTION 19 Marginal cost is the: O B. change in total cost that results from producing one more unit of output OC. change in average variable cost that O D.change in average total cost results from producing one more unit of output O A. rate of change in total fixed cost that that results from producing results from producing one more unit of output one more unit of output

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 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

See similar textbooks

Similar questions

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
How does fixed cost affect marginal cost? Why is this relationship important?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
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?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
Suppose the cost of machines increases to 55, while the cost of labor stays at 40. How would that affect the total cost of the three methods? Which method should the film choose now?
19. Table 13-16 Total Cost Fixed Cost Variable Marginal Cost Average Average Average Total Cost Cost Fixed Cost Variable Cost 0. 524 S16 S50 3. St08 4. 540 Refer to Table 13-16. What is thefxed cost of producing O units of output? a. S16 b. S24 c. S12 d. So 20. Refer to Table 13-16 in Question 19 What is the totalcost of oroducing 2 units ooutput? b. 574 css8 21. Refer to Table 13-16 in Question19. What is the marg nal cost of the 4th unit of output? bS136 540 d Sc8
Costs per unit (dollars) 50 40 30 20 10 0 I 500 SRATC SRATC SRATC 1.000 1,500 2,000 Quantity of output (units per week) LRAC Given the short-run average total cost curves in Exhibit 7-15, what level of output per week minimizes average total cost? O a. 2,000 units O b. 1,500 units O c. 500 units O d. 1,000 units
Use the figure below to answer the following questions. Average cost (dollars per sweater) 12 H Select one: OA. Plant A OB. Plant B O C. Plant C O D. Plant D O E. none of the above 10 8 6 4 2 0 5 10 ATCA ATCB ATCC ATCD 15 20 25 30 Output (sweaters per day) Figure 11.4.2 Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which plant has the lowest average total cost for an output rate of 5 sweaters a day?