Which of the following statements is correct? Multiple Choice ___ Marginal cost is the change in the average fixed cost associated with a change in output of one unit. ___ The marginal cost curve intersects the average variable cost curve at its lowest point. ___ The marginal cost curve intersects the average variable cost curve at a level of output greater than where the marginal cost curve intersects the average total cost curve. ___ If average variable cost is increasing, then average total cost must be increasing, too.

Q: You are planning to start a business. When calculating the costs. You have considered the costs of…

A: Opportunity cost refers to the best alternative foregone when choosing the other alternative.

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A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…

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

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

Q: Adam operates a factory that produces beach towels. His current level of output equals 1000 towels…

A: Average total cost is referred to as the sum total of all production costs divided by the total…

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A: Costs are the expenses that a firm incurs in the form of the purchase of inputs to produce goods and…

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A: Here, it is given that a firm in the furniture market is analyzing its short-run total cost.…

Q: In the short run with fixed amount of at least one input, the law of diminishing returns must apply,…

A: When the one input is fixed then the firm experience diminishing returns because adding one more…

Q: Which of the following statements are true about Marginal Cost (MC) and Average Cost (AC)? 1. MC is…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Copy the table below into your answer booklet and fill in the missing figures: output total cost…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

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A: Fixed costs incorporate quite a few costs, including rental rent installments, compensations,…

Q: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: ATC4 LRATO ATC ATC OUTPUT COST PER UNIT

A: Average total cost is the total cost incurred for a single unit of output out of the total output.…

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: Disclaimer :: as you posted multiple questions we are supposed to solve the first one only. Cost is…

Q: A firm has two plants that produce identical output. The cost functions are : C 1 = 10q – 4q 2 + q 3…

A: The average cost curve shows the per-unit cost of producing a specific quantity of goods or services…

Q: ing to the long-run average cost cur

A: The cost of per unit output is known as the average cost. It directly depends on returns which…

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: Consider the three figures below, depicting possible cost functions for a firm. The horizontal axis…

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: Prove that the marginal cost line (MC) crosses the Average Variable Cost line (AVC) at its minimum

A: Marginal cost (MC) refers to the production cost of an additional unit of output. An Average…

Q: Please see the attached two pictures, one for the graph, and the other for the questions.

A: In the third part of this question, which was uploaded in the previous link, there is a correction.…

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A: The average cost is the total cost divided by the quantity of output whereas the marginal cost is…

Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…

A: Marginal cost is the cost of producing an additional unit. With the increase in production, till a…

Q: Which of the following statements is right? The marginal cost curve is the inverse shape of the…

A: Average Total Cost or ATC: ATC tend to be shaped like a Nike swoosh. At first is falls because of…

Q: unction for Soybeans Quantity of labor (workers) Quantity of soybeans (bushels) 1 25 45 3 60 4 70 75…

A: Here we calculate the total cost of 70 bushels by using the given information and choose the correct…

Q: State two examples of the fixed cost and two examples of the variable cost in economics

A: According to the given question Fixed cost are those cost in economics which are basically and…

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A: Production is the process of creating goods or services. It involves the use of inputs, such as raw…

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A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.…

A:

Q: For the cost function c = √q, show that marginal and average costs are always decreasing.

A: The firm produces goods and services which would result in the firm to incur cost. The production of…

Q: The economies-of-scale curve is a long-run average cost curve, because       it allows all factors…

A: Basics:- Short run:- It is a period of time in which fixed cost remains constant because all factors…

Q: Which of the following statements is a reflection of the fact that the average fixed cost falls as…

A: Total cost (TC) is the sum of fixed cost (FC) and variable cost (VC). i.e., TC = FC + VC…

Q: The following table shows the capital and labor requirements for 10 different levels of production.…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Explain why the red curve is an incorrect representation of a long-run average cost curve. Note: the…

A: The average cost is the called the per unit cost of production. The AC = TC/Q. The long run Average…

Q: there C is total cost, F is fixed cost, c is a constant and ost, and average cost? Over what range…

A: Given information; C(q) = F + cq Where C is the total cost, F is fixed cost, c is constant, and q is…

Q: The marginal cost curve passes through the minimum point of the average variable cost curve but not…

A: ATC(Average total cost), MC(Marginal cost) and AVC(average variable cost) are U shaped curves. This…

Q: 25) In a short-run production process, the marginal cost is rising and the average variable cost is…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…