QUESTION 7 Consider a coffee shop that can increase the amount of coffee sold by increasing the number of coffee machines. If the coffee seller faces diminishing marginal returns to the coffee machines, she must also face... O Decreasing marginal costs O Decreasing total cost Increasing Marginal Costs Increasing average costs O Constant average costs

QUESTION 7 Consider a coffee shop that can increase the amount of coffee sold by increasing the number of coffee machines. If the coffee seller faces diminishing marginal returns to the coffee machines, she must also face... O Decreasing marginal costs O Decreasing total cost Increasing Marginal Costs Increasing average costs O Constant average costs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Q18
Bob produces candles. The average total cost reaches its minimum at a quantity O A. the same as the quantity at which the average variable cost reaches its minimum. O B. lower than the quantity at which the average variable cost reaches its minimum. O C. the same as the quantity at which the marginal cost is at a maximum. O D. the same as the quantity at which the marginal cost is at a minimum. O E. greater than the quantity at which the average variable cost reaches its minimum.
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Average Total Cost (Dollars per bike) Number of Factories Q = 100 O = 200 O = 300 Q = 400 O = 500 O = 600 1 260 200 160 200 280 400 2 330 240 160 160 240 330 400 280 200 160 200 260 Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is $ per bike. kes Suppose Ike's Bikes is expecting to produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce using On the following graph, plot the three short-run average total cost curves (SRATC) for Ike's Bikes from the previous…
8. Consider a firm's short run and long run average costs depicted below: 300 270 240 210 180+ Wunt 150 120+ 90 60 30 ---- W X AC LRAC 200 400 600 800 1000 1200 1400 1600 1800 2000 # of units Suppose this firm has been producing 400 units per month for a long time. If it decides to increase its output to 800 units per month, then its average cost will O A. fall from $300/unit to $150/unit initially, then rise to $240/unit eventually. O B. fall from $300/unit to $60/unit initially, then rise to $240/unit eventually. O C. fall from $300/unit to $60/unit and remain there. O D. fall from $300/unit to $240/unit and remain there. O E. rise from $150/unit to $240/unit initially, then fall to $60/unit eventually. OF. rise from $150/unit to $300/unit initially, then fall to $60/unit eventually. O G. fall from $150/unit to $60/unit and remain there. OH. rise from $150/unit to $240/unit and remain there.
3
Table 7 Jimmy's Gigaplots Factory Quantity of gigaplots 1 ~ 3 2 4 5 679 BAC Select one: Fixed Cost O a. $22.17 O b. $22.57 O c. $16.34 O d. $22.00 aguila Variable Cost $13 $28 $64 $108 $133 Total Cost $38 $70 $110 $185 Average Average Fixed Variable Cost Cost Refer to Table 7. What is the average total cost of producing 6 gigaplots at Jimmy's Gigaplot factory? Average Total Margina Cost Cost
Typically, the marginal cost curve is marginal returns suggests that added units are O upward-sloping; more costly to produce Odownward-sloping; more costly to produce O upward-sloping: less costly to produce because diminishing
Question 8 Which of the following is not a variable cost at the sandwich shop? O Cost of labor Cost of tomatoes O Cost of delivery Cost of rent Question 9
KA
A Share Zoom TVC TC AVC MC 0. 15 23 30 Answer the following questions:
Is a type of cost which does vary with the unit of production and will change with the number of unit sold. O A. Variable cost O B. Fixed cost O C. Sunk cost O D. Opportunity cost
Output TC ($) 200 250 15 300 20 350 23 400 25 450 Refer to the information above to answer this question. If total variable cost decreases by 20% at all levels of output, what is ATC when output is 20? O a. $12 O b. $30 Oc. $10 O d. $16 O e. $80