Explanation Given information: The cost function C ( q ) is a decreasing function of quantity q is wrong. Concept used: The Linear cost function is f ( x ) = a x + b where b is the marginal cost. Calculation: The graph of C ( q ) is a line with a large vertical intercept and a small slope. Let’s consider a company that makes radios. The factory and machinery needed to begin production are fixed costs, which are incurred even is no radios are made. The costs of labor and raw materials are variable costs since these quantities spend on how many radios are made. The fixed costs for this company are $ 24 , 000 and the variable costs are $ 7 per radio

6th Edition

ISBN: 9781119275565

Author: Hughes-Hallett

Publisher: WILEY

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Chapter 1, Problem 39SYU

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Indicate whether the statement is true or false.

The cost function C(q) is a decreasing function of quantity q is wrong.

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Chapter 1, Problem 38SYU

Chapter 1, Problem 40SYU

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Chapter 1 Solutions

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Indicate whether the statement is true or false. The cost function C ( q ) is a decreasing function of quantity q is wrong.

Solution Summary: The author explains that the cost function C(q) is a decreasing function of quantity.

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Indicate whether the statement is true or false.

The cost function C(q) is a decreasing function of quantity q is wrong.

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Indicate whether the statement is true or false. The cost function C ( q ) is a decreasing function of quantity q is wrong.

Solution Summary: The author explains that the cost function C(q) is a decreasing function of quantity.

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Indicate whether the statement is true or false. The cost function C(q) is a decreasing function of quantity q is wrong.

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Chapter 1 Solutions

Indicate whether the statement is true or false.

The cost function C(q) is a decreasing function of quantity q is wrong.