The four statements below describe properties of a firm's short run cost curves. Complete the statements using words from the list given below. • The increase in total cost from producing an additional unit of output is called • Total cost divided by the quantity of units produced is called • If average cost is at a minimum then average cost is • If average cost falls as output increases, average cost must be average cost greater than marginal cost total cost equal to marginal cost marginal cost less than marginal cost ( Previous page Next pag

The four statements below describe properties of a firm's short run cost curves. Complete the statements using words from the list given below. • The increase in total cost from producing an additional unit of output is called • Total cost divided by the quantity of units produced is called • If average cost is at a minimum then average cost is • If average cost falls as output increases, average cost must be average cost greater than marginal cost total cost equal to marginal cost marginal cost less than marginal cost ( Previous page Next pag

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

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Similar questions

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?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
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?
What is a long-run average cost curve?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.