MANAGERIAL ECONOMICS
5th Edition
ISBN: 9781337106658
Author: FROEB
Publisher: CENGAGE L
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Question
Chapter 7, Problem 3MC
To determine
Decreasing average cost.
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The lawn ranger , a landscaping company , has total costs of $5,000 and total fixed cost of $3000 .The lawn ranger's toal variables cost are
a. indeterminate because the firm's output level is not known.b. $3,000.c. $5,000.d. $2,000.
Draw a graph showing the fixed cost, variable cost, average total cost, marginal cost curves, and explain the graph.
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Large costs incurred in an investment that cannot be easily recovered are called
a.
Variable Costs
b.
Sunk Costs
c.
Marginal Costs
d.
Maximal Costs
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