Essentials of Economics (MindTap Course List)
7th Edition
ISBN: 9781285165950
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 12, Problem 4QCMC
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Students have asked these similar questions
When output increases from 20 to 30 units the total cost increases from $500 to $600. Assuming the fixed cost is $200, which of the following is true?
a.
Average total cost falls
b.
The production cost per unit is increasing
c.
Average fixed costs rise
d.
Marginal cost is equal to fixed cost
Which of the following measures of cost is best described as "the cost of a typical unit of output if total cost is divided evenly over all the units produced?"
a. average variable cost
b. average fixed cost
c. marginal cost
d. average total cost
Which type of cost does depend on a firm's output?
1.marginal cost
2.total cost
3.variable cost
4.all of the above
Chapter 12 Solutions
Essentials of Economics (MindTap Course List)
Ch. 12.1 - Prob. 1QQCh. 12.2 - Prob. 2QQCh. 12.3 - Prob. 3QQCh. 12.4 - Prob. 4QQCh. 12 - Prob. 1QRCh. 12 - Prob. 2QRCh. 12 - Prob. 3QRCh. 12 - Prob. 4QRCh. 12 - Prob. 5QRCh. 12 - Prob. 6QR
Ch. 12 - Prob. 7QRCh. 12 - Prob. 8QRCh. 12 - Prob. 1QCMCCh. 12 - Prob. 2QCMCCh. 12 - Prob. 3QCMCCh. 12 - Prob. 4QCMCCh. 12 - Prob. 5QCMCCh. 12 - Prob. 6QCMCCh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Prob. 5PACh. 12 - Prob. 6PACh. 12 - Prob. 7PACh. 12 - Prob. 8PACh. 12 - Prob. 9PACh. 12 - Prob. 10PA
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- Average total cost, average variable cost marginal cost and marginal product b. The relationship between marginal product and marginal cost is reciprocal or opposite. Why is it so? Explain.arrow_forwardThe Santa Clara County increases the property taxes for all fast food restaurants. Which cost curves will be affected as a result of this policy? 1. average total cost and average fixed cost. 2. average variable cost and average total cost. 3. average variable cost and marginal cost. 4. average variable cost and average fixed cost.arrow_forwardThe Towson Table Company has fixed costs of $5,000 per month. Variable cost at the current level of output of 100 tables per month is $10,000. Which of the following is true for the company? A. Average cost of production is $150. Average cost of production is $100. C. Average fixed cost of production is $150. Average variable cost of production is $150. B. D.arrow_forward
- If marginal cost is less than average variable cost and output increases, average total cost and average variable cost. Select one: OA. decreases; increases B. increases; decreases C. increases; increases D. decreases, decreasesarrow_forwardThis refers to the ratio of a small increment of cost and a small increment of output. a. Increment cost b. Marginal cost c. Differential cost d. All of thesearrow_forwardMarginal cost, average total cost and average variable cost Marginal cost and average total cost are always equal. Do you agree? Explain. If you disagree then write under what situation they are equal. b. Marginal cost and average variable cost are always equal. Do you agree? Explain. If you disagree then write under what situation they are equal.arrow_forward
- Which of the following best describes total fixed cost?a.The change in total cost when one additional unit of output is produced.b.Total cost divided by the quantity of output produced.c.Total variable cost divided by the quantity of output produced.d.Cost that do not vary as output varies.arrow_forwardThe average total cost (ATC) curve will be downward sloping so long as the a. marginal cost is greater than average total cost. b. marginal cost is less than average total cost. c. average variable cost is less than average total cost. d. average fixed cost is less than average total costarrow_forwardwhat is meant by the term Cost of production? Distinguish between fixed and variable cost. Why short run average cost and marginal cost curve generally U-Shaped?arrow_forward
- A firm is producing 20 units with an average total cost of $25 and marginal cost of $15. If it were to increase production to 21 units. Find the total cost?arrow_forwardTotal cost is 1200.output is 20.fixed cost is 1000.what is variable cost?arrow_forwardAverage Cost falls when a. Marginal cost is greater than average cost b. Marginal cost is equal to average cost c. Marginal cost is constant d. Marginal cost is less than average costarrow_forward
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