Which of the following statements about average and marginal cost is INCORRECT? (2) (1) The marginal cost curve cuts both the average cost and average variable cost curves at their minimum points; (2) The marginal cost curve cuts both the average fixed cost and average variable cost curves at their minimum points; (3) The marginal cost curve lies below the average cost curve when average cost is decreasing; (4) Marginal cost is the change in total cost when one extra unit of output is produced.

Q: The statements and equations show various ways of defining average variable cost, marginal cost, and…

A: Average Variable cost refers to the variable cost per unit. It can be calculated as follows: In…

Q: Give the formulas for average fixed cost (AFC), marginal cost (MC), average variable cost (AVC), and…

A: Average fixed cost = Fixed cost / quantity Marginal cost = Differentiating the total revenue…

Q: Use the relationship between the marginal cost curve and the average total cost curve to explain why…

A: Marginal cost is the cost of producing an additional unit of quantity.  Average total cost is the…

Q: Explain the difference between total cost, average cost, and marginal cost.

A: Economic cost: The economic cost is different from the accounting cost. Economics cost involves…

Q: When the marginal cost curve lies below the average total cost curve, it is true that as output…

A: Answer to the question is as follows:

Q: Which cost concept includes both explicit and implicit costs? a) Total cost b) Variable cost c)…

A: In financial matters, understanding various sorts of costs is significant for dissecting business…

Q: If the marginal cost of production is greater than the average variable cost, what does this tell…

A: Variable costs are the ones which change with the change in the level of output, i.e., it is output…

Q: Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then…

A: Total Costs  = Variable costs + Fixed costs AC = AFC + AVC

Q: What is total fixed cost when output is 2, fixed cost is 25, and average cost is 30

A: Fixed cost are such cost that do not vary with the level of output i.e it remains constant at every…

Q: True or False The slope of the total cost curve is equal to marginal cost, or the change in…

A: Total cost It refers to all the cost or expense that is incur in a production process.It is given by…

Q: Q10. Label and complete the following daily cost schedule for Company A as directed by the question…

A: here we calculate the total cost and average variable cost and average total cost and marginal cost…

Q: Define total cost, average total cost, and marginal cost. How are they related?

A: Production prices ar the expenses incurred by a firm once it manufactures a product or provides a…

Q: What is the typical shape of the average fixed cost curve, Why is it shaped this way. Graphically…

A: Average Fixed Cost (AFC) is the cost that must be incurred in fixed quantity regardless of the level…

Q: The government imposes a $1000 per year license fee on all pizza restaurants. As a result, which…

A: The graph showing the function of the total quantity produced is production cost said to be the cost…

Q: What is the relationship between average variable cost and marginal cost? a) They are always equal…

A: Prior to diving into the connection between average variable cost (AVC) and marginal cost (MC), it's…

Q: For each of the total cost functions, write the expressions for the average cost, average fixed…

A: The values for average cost (AC), average fixed cost (AFC), average variable cost (AVC), and…

Q: Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale.…

A: According to the question, C(x) = ½ X^2 AV(x) = C(x)/x           = ½ x MC(x) = C’(x)             =x

Q: Calculate total costs at 4 units of output.  Do not put a dollar sign in your answer.  (The 6…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then…

A: Average cost is the per unit cost of production. it is the ratio of total cost and output.  Marginal…