Show that for a proit-maximizing firm producing at its optimal quantity, y, its average total cost is minimized when marginal cost is equal to average total cost. Some tips to get you started:

Q: In the short-run, if the marginal cost of a firm in a competitive industry is upward sloping while…

A: The short-run is the time period where at least one variable is fixed and others are variable. In…

Q: Using the graph below, determine if the firm should shut down or stay open in the short run and why.…

A: b) the firm should shut down in the short run because they are unable to cover their variable cost

Q: As the quantity produced increases, then a. variable cost always decreases b. average fixed cost…

A: Total cost is defined as the sum of all exposed being incurred by the producer in order to producer…

Q: Output per hour 0 1 Total Cost $ $ ՄԴ 1,000 1,200

A: Total cost is the sum of fixed cost and variable cost. Fixed cost is the cost that remains same at…

Q: It requires a large sum of money to produce a musical CD. The band has to be formed and rehearsed.…

A: Introduction  Marginal costs refer to additional to total cost when one more units of output is…

Q: a) What is Quantity of cars TC $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000…

A: The total sum that a producer must pay to create all of their goods and services is referred to as…

Q: You have the following information about long-run total cost for the following firms: Quantity…

A: The long-run average cost curve represents the least average cost to produce any given level of…

Q: One A4 page please  Explain why there are no fixed costs in the long run

A: In long run, all the fixed costs that exist in short run becomes variable hence, there is no fixed…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: The curves below reflect information about the average total cost, average fixed cost, average…

A: Average fixed cost is a measure of fixed cost which gives value of fixed cost per unit of…

Q: Mariam's Kitchen offers catered meals in a perfectly competitive industry. Mariam's machinery costs…

A: Total cost shows the total cost of producing a good. Total cost includes the fixed cost and the…

Q: In the short run, if a marginal cost of a firm in a competitive industry is increasing while its…

A:

Q: Refer to the table to the right which shows cost data for Lotus​ Lanterns, a producer of whimsical…

A: Variable costThe total expenses for a firm are composed of two branches. The fixed expenses are the…

Q: Quantity of cars Oa Ob Oc Od 1-8 6-8 1 2 46 3 4 5 6 7 8 LRATC of car $30,000 20,000 The wagon is a…

A: A firm which is long-run average total cost (LRATC) shows the average cost per unit of output over a…

Q: If total profit is at a maximum, marginal profit is zero. a. True O b. False

A: # The profit maximization for a firm occurs at the point where the marginal cost is equal to the…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: The Average total cost curves, the original ATCO and when an extra café is added ATC, is shown in…

A: When firms operate in a market, they incur different costs. The total cost is the sum of fixed costs…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: The graph you have shows a firm's short-run cost curves, which depict how costs change with…