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

A:

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

A:

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: 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: 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: 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: (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…