When marginal-cost curve lies: a. above the ATC curve, ATC rises b. above the AVC curve, ATC rises c. below the AVC curve, total fixed cost increases d. below the ATC curve, total fixed cost falls Please, show your answer graphically.

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: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…

A: Marginal Cost(MC) is the increment in the total cost(TC) due to a unit increment in the amount of…

Q: Why the average fixed cost curve does not touch the output axis ? YA AFC Output Cost

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Q: QUESTION 25 The Marginal Cost curve crosses the Average Total Cost curve at its maximum. True False

A: "Marginal cost represents change in total costs when one more unit is produced while average total…

Q: What will be the marginal cost if the change in total cost is $55 and Change in quantity is $60.

A: Marginal cost determined to be a cost, which involves increase or decrease to the overall cost of…

Q: A X= 45.00, Y= 55.00, Z = 62.50 X= 40.00, Y= 60.00, Z = 62.50 C X = 18.00, Y= 55.00, Z = 50.00 X=…

A: here we complete the table and answer the following below

Q: If a firm's average variable cost curve is rising, its marginal cost curve must be

A: If a firm`s average variable cost curve is rising, its marginal cost curve must be

Q: minimum average total cost is $15 at a quantity of 200 hamburgers. His total fixed cost is $300. Use…

A: Given information: AVC at 100 hamburgers is $10, and AVC is the minimum at this point. ATC at 200…

Q: marginal cost

A: The marginal cost depicts the additional cost of an extra unit of output produced. As, the level of…

Q: Costs # Refer to the graph above to answer this question. Which curve illustrates marginal cost? A)…

A: Marginal cost will be an extra cost incurred by an entity for producing an additional unit of…

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: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

A:

Q: Derive the long run average total cost curve and show minimum efficient scale on it.

A: The money spent to purchase the factor of production to produce the final goods and services is…

Q: bath the marginal cost and the average variable cost curves are U-shaped, at the minimum point of…

A: Average total cost is the sum of average Fixed cost and average variable cost. It is referred as…

Q: if marginal cost is rising with increasing output, averags cost must also be rising. true or false ?…

A: False. This sentence contains the statement that average cost of production must also rise if…

Q: Draw a U-shaped average total cost curve and a marginal cost curve on the same graph.

A: The average total cost describes the overall cost required for the production process which gets…

Q: Marginal cost is $26, and Average total cost is $33 when 20 units are produced. What will happen to…

A: Introduction Total cost includes all the implicit and explicit expenditures that are made during the…

Q: Illustration 1. Total Fixed Cost is 90, complete the following table: Average Variable Cost (E)…

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Q: Graphically show the relationship between the Avg. Variable Cost, Avg. Total Cost, and Marginal Cost…

A: Below is the formula: AVC = TVCQATC = TCQMC = TCn - TCn-1

Q: What is the shape of the average variable and average total cost curves and average  fixed cost?…

A: One of three average curves is the average variable cost curve. The average variable cost curve is…

Q: 3:5 Uwe produces bicycles. The quantity of bicycles is Q. The material costs are 36 for each…

A: Since , we are given that Quantity of bicycle produced=Q Material cost= 36 for each means 36Q Cost…

Q: Marginal cost is $26, and Average total cost is $33 when 20 units are produced. What will happen to…

A: Introduction Total cost includes all the implicit and explicit expenditures that are made during the…

Q: Draw an example of the Total Fixed Cost, Total Variable Cost, and Total Cost of a company whose…

A: The term total cost refers to the sum of all the costs that are used in the production of a…

Q: Which of the following is the extra, or additional, cost of producing one more unit of output?…

A: While producing the output, the producers majorly incur two kinds of costs, for example, the…

Q: Is this graph a valid set of cost curves? True/False

A: Cost Curves: In microeconomics, cost curves shows the production cost and output quantity. The cost…

Q: Complete the table below to test your understanding of total, average, and marginal cost. The…

A: Following Formulas are important to solve the table: TC = FC + TVC TC = ATC/Q FC = AFC/Q TVC =…

Q: 3. As marginal cost rises, average variable cost necessarily rises. * True False

A: Marginal cost (MC) curve is the incremental cost of production, i.e. the cost incurred when one more…

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

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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: Exhibit 6-13 Cost curves In Exhibit 6-13, ATC is shown by the graph labeled: O a. V. KERKE Q b. I. O…

A: The Average Total Cost (ATC) curve is a graphical representation of the average cost per unit of…

Q: 2. Consider a perfectly competitive industry where each firm has the cost structure described above.…

A: For a firm in perfect competition, the supply curve is given by Price = Marginal Cost  So we plot…

Q: The concept of marginal cost is best described by which of the following? O Mr. Creosote meets a…

A: Marginal cost refers to those cost that firm incurs when it decides to produce an additional unit of…

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…

Q: Graph the curves for total cost, ATC, AVC, AFC, MC. Explain shape of these curves and the…

A: There exist various relationship between these curves.