Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter P2, Problem 13KC
To determine
The point where the diminishing returns set in.
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Students have asked these similar questions
A) What is the differences between marginal product and marginal cost. Write short note and
support your answer by graph.
Which of the following statements
correctly explains the average cost and
the marginal cost of production?
a.
Marginal cost is equal to the profit-
maximising price set by a firm that
produces a differentiated good.
b.
Average cost is the vertical intercept of
the total cost curve.
C.
Marginal cost is calculated as the total
cost divided by the quantity
d.
Average cost is at its minimum when it is
equal to marginal cost.
e.
Marginal cost is always higher than
average cost.
Which 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.
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- What is a long-run average cost curve?arrow_forwardWhich 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 increasesarrow_forwardWhich type of cost does depend on a firm's output? 1.marginal cost 2.total cost 3.variable cost 4.all of the abovearrow_forward
- 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_forwardUNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE COST AVERAGE VARIABLE COST TOTAL FIXED TOTAL AVERAGE TOTAL MARGINAL COST COST COST COST 012345678 0 $1 $2 6 $1 2 15 $1 27 $1 37 $1 45 $1 50 $1 52 $1 50 $1 ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ $2 $2 $2 $2 $2 $2 $2 $2arrow_forwardDiminishing marginal product explains why, as a firm’s output increases.a. the production function and total-cost curve both get steeper.b. the production function and total-cost curve both get flatter.c. the production function gets steeper, while the total-cost curve gets flatter.d. the production function gets flatter, while the total-cost curve gets steeper.arrow_forward
- What are diseconomies of scale? Diseconomies of scale is A. when the marginal product of labor is decreasing with output. B. when the marginal cost of production is increasingwith output. C. when a firm's long-run average costs decrease with output. D. when a firm's long-run average costs increase with output.arrow_forwardWhen the marginal cost is lesser than the average cost the firm is producing in which Answers: A. The average cost is decreasing. B. The total cost is decreasing. C. The average cost is increasing. D. The marginal cost is decreasing.arrow_forwardExplain why the marginal cost curve intersects the average total cost curve at the level of output where average total cost is at a minimum. The marginal cost curve intersects the average total cost curve at the level of output where average total cost is at a minimum because A. the firm begins experiencing economies of scale at this quantity. B. when the marginal cost of the last unit produced is below the average, it pulls the average down, and when the marginal cost is above the averge, it pulls the average up. C. when the marginal cost of the last unit produced is increasing, the marginal product of labor is at a minimum. D. the firm begins benefiting from division of labor at this quantity. E. the firm begins experiencing diminishing returns at this quantity.arrow_forward
- 1. How does fixed cost affect marginal cost? Why is this relationship important? 2. Is it possible for total utility to increase while marginal utility diminishes? Explain. 3. Define economies of scale and explain why they might arise. Define disecononies of scale and explain why they might arise.arrow_forward1) In short, what does the production function describe? A .how a firm maximizes profits. B. how a firm turns inputs into output. C. the minimal cost of producing a given level of output. D. the relationship between cost and output. 2)What is the significance of the point at which Marginal Revenue and Marginal Cost curves intersect on a graph? A. total revenue is equal to variable cost. B. total revenue is equal to fixed cost. C. total revenue is equal to total cost. D. profit is maximized.arrow_forwardThe law of diminishing marginal returns states: Select one: a. As a firm uses more of a variable factor of production, total product (TP) eventually decreases. b. As the size of a plant increases, marginal product (MP) eventually decreases. c. As a firm uses more of a variable factor of production, its average cost (AC) eventually decreases. d. As a firm uses more of a variable factor of production, with a given quantity of the fixed factor of production, the MP of the variable factor eventually decreases.arrow_forward
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