Suppose that Apple's short-term total cost function is given byTC25+5Q, where Q is the quantity produced. Which of thefollowing is correct about its short-term cost?○ Average fixed costs are constant at all levels of production.○ When production exceeds a certain level, marginal cost exceedsaverage cost.○ As production increases, marginal cost increases.○ At all levels of production, average variable cost and marginal cost areequal.○ The average total cost curve is U-shaped. Which of the following is correct about the cost curve?A. Average total cost is higher than or equal to average variablecost.B. When the average total cost curve rises, the marginal cost curvelies below the average total cost curve.C. The average fixed cost curve slopes downward.D. The slope of the total variable cost curve and the slope of thetotal cost curve are different.E. Average total cost is the sum of average fixed cost and averagevariable cost.○ A, D, E○ B, D, E○ B, C, DО А, В, С○ A, C, E

1. Total cost: Total cost refers to the complete expenditure accured by a firm during the production…

Which of the following is correct about the cost curve? A. Average total cost is higher than or equal to average variable cost. B. When the average total cost curve rises, the marginal cost curve lies below the average total cost curve. C. The average fixed cost curve slopes downward. D. The slope of the total variable cost curve and the slope of the total cost curve are different. E. Average total cost is the sum of average fixed cost and average variable cost. ○ A, D, E ○ B, D, E ○ B, C, D О А, В, С ○ A, C, E

Which of the following is correct about the cost curve? A. Average total cost is higher than or equal to average variable cost. B. When the average total cost curve rises, the marginal cost curve lies below the average total cost curve. C. The average fixed cost curve slopes downward. D. The slope of the total variable cost curve and the slope of the total cost curve are different. E. Average total cost is the sum of average fixed cost and average variable cost. ○ A, D, E ○ B, D, E ○ B, C, D О А, В, С ○ A, C, E

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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