[11] cost equal to $10 and its average variable cost equal to $8. At 101 units of output, the firm's average fixed cost will: Operating in the short-run, a firm is currently producing 100 units of output, with its average total be greater than $2 equal $2 be less than $2 all of the above are possible. А. В. С. D.

[11] cost equal to $10 and its average variable cost equal to $8. At 101 units of output, the firm's average fixed cost will: Operating in the short-run, a firm is currently producing 100 units of output, with its average total be greater than $2 equal $2 be less than $2 all of the above are possible. А. В. С. D.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 10MC

See similar textbooks

Similar questions

Assume that in the short run a firm is producing 1,000 units of output, has average total costs of $100, and has average variable costs of $75. The firm's total fixed costs are.
Consider a firm that is currently producing a level of output that maximizes its profits. The firm generates revenue of $40 million per month. Each month, the firm spends $30 million on worker compensation and $20 million on renting buildings and machinery. a) What is this firm’s current monthly profit? b) Should this firm continue to operate in the short run? Why?
In the short run, the marginal cost of the first unit of output is $40, the average variable cost of producing three units of output is $32, and the marginal cost of producing the second unit of output is $32. What is the marginal cost of producing the third unit of output? (Correct answer is $24)
Measures of Cost for Charlie's Chocolate Factory Quantity(Boxes of Chocolates) VariableCosts TotalCosts FixedCosts 0 $15 1 $1 2 $3 $18 3 $6 $21 4 $10 5 $30 6 $21 $15 What is the fixed cost of producing three boxes of chocolate? Question 15 options: $0 $1 $15 $18
Q15 Which of the following statements about the firm's short-run average product (AP) and marginal product (MP) curves is correct? a. TP begins to decrease when AP begins to decrease. b. TP is at its maximum when MP = O. c. When the MP curve cuts the AP curve from below, the AP curve begins to fall. d. AP is at its minimum when MP = AP. e. When MP > AP, AP is decreasing. Clear my choice
Assume that in the short run a firm is producing 1,000 units of output, has average total costs of $100, and has average variable costs of $75. The firm's total variable costs are
Consider the following table of long-run total cost for four different firms: Which firms have diseconomies of scale over the entire range of output? a. Firm 1b. Firm 2c. Firm 3d. Firm 4e. Firm 2 and 4
You are given the following cost data. You can’t produce fractions of a unit. Q 0 1 2 3 4 5 6 TFC 12 12 12 12 12 12 12 TVC 0 5 9 14 20 28 38 If the price of output is Rs 7, how many units of output the firm will produce? Will the firm operate in short run and long run? b) How does Total Revenue change with change in price under conditions ep=1, ep<1 and ep>1?
11 true or false The minimum short-run average total cost occurs at a level of output that is greater than that at which average variable cost is at a minimum
The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run. Plant 1 Plant 2 Plant 3 Output ATC Output ATC Output ATC 10 $ 10 10 $ 15 10 $ 20 20 9 20 10 20 15 30 8 30 7 30 10 40 9 40 10 40 8 50 10 50 14 50 9 What is the long-run average cost of producing 10 units of output? Multiple Choice $10 $15 $20 $45
In the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs Multiple Choice are $2.50. are $1,250. are $750. are $1,100.
Assume that the firm’s minimum average variable cost is £6.5. Should the firm continueoperating in the market in the short run? In the long run? If the firm is typical of other firms in the market, what price will it charge in the long run? Explain.