The marginal cost curve intersects the average total cost curve at the level of output where average total cost is at a minimum because

Q: 1. Explain the difference between an implicit cost and an explicit cost, and how both costs relate…

A: 1.  Implicit cost is the cost that has already occurred in the past. However, these are not direct…

Q: Explain the influence of costs in the short run on a firm's output

A: Short-run is a period of time when there is some cost which cannot be varied.

Q: 1. Chapter 11, 4.2, p.397 If the marginal product of labor is rising, is the marginal cost of…

A: The marginal product of labor refers to the change in output by employing one extra unit of labor.…

Q: When there are positive fixed costs, can the average variable cost curve and average total cost…

A: We have 3 different costs, ATC, AVC and AFC where ATC is the sum of AVC and AFC. Given that are…

Q: Explain in words why the Law of Diminishing Marginal Returns implies that there are increasing…

A: Law of diminishing marginal returns states that, as the production is continuous using factor of…

Q: The curves below reflect information about the cost structure of a firm. Use the figure to answer…

A: In a market,  a firm's cost curves helps to analyze its production efficiency at different output…

Q: True or False: The shape of the total physical product curve reflects the law of increasing marginal…

A: The law of increasing marginal returns also called the law of diminishing costs states that as far…

Q: Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the…

A: Formulas to be used:TC = VC+FCATC = TC/QAVC = TVC/QAFC = TFC/OMC = TCn - TCn-1

Q: Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The variable cost…

A: Introduction  Total cost, in economics, the sum of all costs incurred by a firm in producing a…

Q: At the point where marginal cost equals average total cost, average total cost will be increasing.…

A: The marginal cost refers to the change in total cost when one additional unit of output is produced.…

Q: Output (q) VC MC AFC AVC AC 1 $100 $64 $164 $64 $100.00 $64.00 $164.00 2 112 212 48 50.00 56.00…

A: The table is completed below ,   where , FC: Fixed Cost VC : Variable Cost C: Total Cost  MC :…

Q: Which of the following statements are true about Marginal Cost (MC) and Average Cost (AC)? 1. MC is…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: QUESTION 4 Match each of the following terms and descriptions Average Fixed Cost Average Total Cost…

A: Providinf full. Solution.

Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per…

A: Given data: Total cost function TC=$1000+$6X Quantity X=3000 units

Q: The figure illustrates the short-run cost curves for a company that produces cell phones Identify…

A: The total cost curve represents the relationship between total cost and the level of output. The…

Q: A firm’s marginal product will be at a maximum at which of the following levels of output?…

A: To determine the level of output at which a firm's marginal product will be at a maximum.

Q: Which one of the following statements about a firm’s cost curves is true? A. The average variable…

A: The explicit cost refers to the cost expressed in monetary terms. The implicit are not directly…

Q: D. Average Cost (AC) E. Average Variabel Cost (AVC) F. Average Fixed Cost (AFC) Please solve…

A:

Q: Fill in the following cost table where cells have been left blank. In other words, use "Units of…

A: Profit is maximum where P = MC or MR = MC  Profit = Total revenue - Total cost.

Q: Costs per unit H Quantity of output 64. Refer to Figure 8-5. Identify the curves in the diagram. a.…

A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…

Q: Following are four graphs representing various cost behaviors. Costs 50 Volume $0 0 11 Volume $0 0…

A: Fixed costs are expenses that remain constant within a certain range of production or over a…

Q: Calculate marginal cost if change in total cost is $630 and the change in output is $17

A: The given information is as follows:- Change in total cost = $630  Change In output = 17 units  We…

Q: a. In the accompanying diagram, place the points labeled Minimum AVC and Minimum ATC in their…

A: The AVC curve, which shows the per-unit variable expenses a company faces at various output levels,…

Q: When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Use the following two statements to answer this question: 1. The average cost curve and the average…

A: Cost curves are graphical representations that illustrate the relationship between the level of…

Q: Can total cost of the firm be zero? if yes what's the production point at this level

A: Total cost of the firm is the combination of fixed cost of the firm such as rent of the workplace…

Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be…

A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales…

Q: (TC is total cost; VC is variable cost; Q is quantity.) ATC а. b. The amount by which total cost…

A: A -Change in TC dur to change in output is called MARGINAL COST B- AMOUNT by which total cost…