SA C Long-Run AC 1 Output Refer to the diagram. If a firm produces output Q₁ at a unit cost of b, then the Refer to the diagram. If a firm produces output Q₁ at a unit cost of b, then the Multiple Choice firm is not fulfilling the least-cost rule in employing resources. О firm may or may not be maximizing profits. О marginal product per dollars' worth of each resource employed is not the same. firm has achieved minimum efficient scale.

It requires a large sum of money to produce a musical CD. The band has to be formed and rehearsed. The recording studio needs to be rented and the music performed, taped and mixed. However, once one original CD has been created, it costs vertually nothing to produce additional CDs. In words, what would the average and marginal costs look like for thiis firm? Explain in detail.

A firm’s cost curves are given in the following table. q TC TFC TVC AVC ATC MC Revenue Profit 0 RO100 RO100             1 140 100             2 160 100             3 170 100             4 182 100             5 195 100             6 220 100             7 250 100             8 290 100             9 340 100             10 400 100               Complete the table. Graph AVC, ATC and MC on the same graph. What is the relationship between the MC curve and the ATC and between MC and AVC? Suppose the market price is RO 60, how much will the firm products in the short run? How much are the total profits?

Refer to the to graph on the right. Which level of output in the graph below represents the minimum efficient scale? OA 1,000 books B. 20,000 books C. 40,000 books $22 00 D. 80,000 books 20.00 18.00 Which size bookstore is more likely to expenence diseconomies of scale? Long-nun Average cost O A. Abookstore selling 1.000 books per month B. A bookstore seling 20,000 books per month C. Abockstore selling 40,000 books per month 40,00.000 OD. A bookstore seling 80 000 books per month 1,000 20,000 Quantry of books sold per month

IAN GE Student Resources - Faculty Resources - Academic Resources - Ime grupiI Delow IIUIUUES two piunt Sizes us musuuteu uy ACr UnU ACZ. AC1 AC2 AC1 AC2 LRAC Q1 02 Output per time period Refer to the graph above to answer this question. Which of the following statements is correct if a firm is operating at point a on AC1? Select one: O a. The firm is achieving MES. O b. Building a larger plant would result in lower long-run average cost. O c. Building a larger plant would not result in lower long-run average cost. od. The firm has achieved capacity output. O e. An increase in the output would not lower costs. Clear my choice Staut o gao

If Farmer Jones plants no seeds on his farm, he gets no harvest. If heplants 1 bag of seeds, he gets 3 bushels of wheat. If he plants 2 bags, he gets 5 bushels.If he plants 3 bags, he gets 6 bushels. A bag of seeds costs $100, and seeds are his onlycost. Use these data to graph the farmer’s production function and total-cost curve. Explaintheir shapes.

Suppose a local retailer is running the following sale on Pepsi 12 packs: $5 each or 3 for $13. The marginal cost of the second pack of Pepsi is ____ and the marginal cost of the third pack is ___.

Consider the production of hotdogs. The average total cost and average variable cost of producing hotdogs are illustrated in the graph to the right. ATC Use the four-point curve drawing tool to graph the marginal cost of producing hotdogs. Properly label this curve. AVC Q Tip: You will plot 4 control points to draw this curve-two end points and two interior points. Once you draw the curve, you can click on it and move the individual points to modify the shape. Carefully follow the instructions above, and only draw the required objects. Quantity of hotdogs Cost (dollars per unit)

Draw tfc, tvc, tc and marginal cost curve on the same graph.

Use the information in the graph to the right to find the values for the following at an output level of 45. 100- The marginal cost is $ 18 . (Round your response to the nearest dollar.) MC The total cost is $ (Round your response to the nearest dollar.) АТС AVC 43 30 18 45 Quantity of output .... Cost