Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 7, Problem 4SQ
To determine
The indication of the rising total variable cost curve in the economy.
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Students have asked these similar questions
Which of the following is true of the relationship between Average Cost and Marginal Cost
Select one:
a. None of the answers given
b. Average increases when marginal cost decreases
c. Average costs decreases when marginal cost increases
d. Average costs increases when marginal cost increases
The government imposes a $1,000 per year license fee on all pizza restaurants. As a result, which of the following cost curves shift, and why or why not?a. Average total cost.b. Marginal Cost.c. Average Variable Cost.
When marginal cost exceeds average total cost,
a marginal cost must be rising.
b average total cost must be falling.
c average total cost must be rising.
d average fixed cost must be rising.
Chapter 7 Solutions
Micro Economics For Today
Ch. 7.5 - Prob. 1YTECh. 7 - Prob. 1SQPCh. 7 - Prob. 2SQPCh. 7 - Prob. 3SQPCh. 7 - Prob. 4SQPCh. 7 - Prob. 5SQPCh. 7 - Prob. 6SQPCh. 7 - Prob. 7SQPCh. 7 - Prob. 8SQPCh. 7 - Prob. 9SQP
Ch. 7 - Prob. 10SQPCh. 7 - Prob. 11SQPCh. 7 - Prob. 1SQCh. 7 - Prob. 2SQCh. 7 - Prob. 3SQCh. 7 - Prob. 4SQCh. 7 - Prob. 5SQCh. 7 - Prob. 6SQCh. 7 - Prob. 7SQCh. 7 - Prob. 8SQCh. 7 - Prob. 9SQCh. 7 - Prob. 10SQCh. 7 - Prob. 11SQCh. 7 - Prob. 12SQCh. 7 - Prob. 13SQCh. 7 - Prob. 14SQCh. 7 - Prob. 15SQCh. 7 - Prob. 16SQCh. 7 - Prob. 17SQCh. 7 - Prob. 18SQCh. 7 - Prob. 19SQCh. 7 - Prob. 20SQCh. 7 - Prob. 21SQCh. 7 - Prob. 22SQCh. 7 - Prob. 23SQCh. 7 - Prob. 24SQCh. 7 - Prob. 25SQ
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Similar questions
- What is a long-run average cost curve?arrow_forwardAverage cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?arrow_forwardWhat will happen to the average total cost if the average variable cost is falling? a. Rises B. Falls C. none of the twoarrow_forward
- How would each of the following affect average total cost, average variable cost, and marginal... Question: How would each of the following affect average total cost, average variable cost, and marginal cost? A. An increase in the cost of the lease of the firm's building. B. A reduction in the price of electricity. C. A reduction in wages. D. A change in the salary of the president of the company.arrow_forwardAverage cost curves (except for average fixed cost) tends to be u-shaped , decreasing and then increasing. Marginal cost curve have the same shape, though this may be harder to see since most of marginal cost curve is increasing . Do you think that average and marginal cost curve have the same general shape and why ?arrow_forwardSolve the attahment.arrow_forward
- When plotting marginal and average cost curves, the cost curve always crosses the cost curve at its Select one: a. average fixed; marginal; minimum b. marginal; average variable; maximum c marginal; average total; minimum d. average variable; marginal; maximumarrow_forwardWhich of the following statement is correct? a. Marginal cost will equal average total cost when marginal cost is at its lowest point. b. When marginal cost is less than average total cost, average total cost will rise. C. When marginal cost is greater than average total cost, average total cost will fall. d. Marginal cost will equal average total cost when average total cost is at its lowest point.arrow_forwardAverage 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_forward
- The 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_forwardIf the marginal cost of production is greater than the average cost, in what direction must the average cost be changing if any? A. The average cost must be rising. B. The average cost would equal 0. C. The average cost must be falling. D. The average cost is unaffected. E. The average cost would become non-existent.arrow_forwardAs long as marginal cost is below average variable cost or average total cost , then average variable cost and average total cost ____ when output is increased. a. rises b. intersects c. falls d. are constantarrow_forward
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