What is the marginal cost of producing another unit of output:

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: What is marginal product, and what does it mean if it is diminishing?

A: The marginal product is determined by the change in total output as one additional input is used in…

Q: How can a company have a competitive advantage without scale?

A: Differentiation Strategy.Being distinctive is a great approach for businesses to differentiate…

Q: Are all fixed costs also sunk costs?

A: Sunk Cost: It refers to the cost that is once incurred can’t be recovered.Fixed Cost: It is the cost…

Q: What happens to the average fixed cost, when the output of a firm increases.

A: # In an economy, the average fixed cost is referred to be as fixed cost per unit of output produced.…

Q: When a firm has a fixed input, all of which must be used all the time, it said that input is?

A: The production function links physical amounts of inputs to physical quantities of output. Cost…

Q: What do you mean by 'production function"?

A: A production function is an economic concept that represents the relationship between inputs and…

Q: What explains the shape of the average and marginal cost curves?  Is it linked to any production…

A: Marginal cost is the measurement of change in total cost with the increment of quantity produced by…

Q: A production function is represented by P=f(L), where L is labour. As input L increases, the total…

A: Marginal product is the addition in total product when one more unit of variable factor is employed.…

Q: Mr Han Cook says that marginal cost is just a funny name for average total cost. What do you think…

A: The marginal cost of production is the difference in total production costs that results from…

Q: 4. Ikea Inc., a home remodeling business. The number of square fee they can remodel in a day is…

A: The optimal combination of inputs is where the ratio of their MPs (marginal product) is equal to the…

Q: Since marginal cost is the reciprocal of marginal product times the input price, it decreases as…

A: The marginal cost refers to the additional cost incurred on production of an additional unit of…

Q: What is the average product doing when the marginal product is decreasing? Why?

A: Average Product (AP): Average product represents the average output produced per unit of input. It…

Q: What level of output does a firm produce?

A: The quantity of products and services produced in a particular time period is referred to as output…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false?

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…

Q: Nimubs, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the…

A: Cost functions are crucial tools for understanding and analyzing the cost framework for a firm's…

Q: that the cost to produce 30Tshirts is $112.59, while the cost to produce 40 Assue the cot Csalinear…

A: The marginal cost is the change in the total cost that arises when the quantity produced is…

Q: discuss more about fixed and variable costs.

A: TC(Total) is the cost which is incurred by a firm in producing some specific level of output. It is…

Q: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

Q: Why is the short run marginal cost curve U- Shaped?

A:

Q: Is total cost 0 when the level of production is 0?

A: # We know that total cost is the sum of total fixed cost and total variable cost.

Q: Where average costs of production are lowest when all output is produced by a single firm

A: Average cost curve: It is a cost bend which is commonly U-shaped. Average variable cost (AVC) is…

Q: (Type a whole number.) The expression for the marginal cost function is (Simplify your answer. Type…

A: Total cost is the sum of fixed and variable costs. Variable costs change according to the quantity…

Q: How would you calculate the marginal cost of your firm's output? (think of a single product, not an…

A: Marginal cost can be understood as the additional cost incurred by the firm to produce an additional…