I need the answer as soon as possible 42. What is the shape of the averagefixed cost (AFC) curve?A. O U-shapeB. O Horizontal up to a point and thenrisingC. O Sloping down towards the rightD. O Rectangular hyperbola

Answered: 42. What is the shape of the average…

42. What is the shape of the average fixed cost (AFC) curve? A. O U-shape Horizontal up to a point and then rising В. C. O Sloping down towards the right D. O Rectangular hyperbola

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 7SQP

See similar textbooks

Related questions

Q: 39. What do you call that COST which is nat usually thought of at a coST? A. Explicit Cost B.…

A: When making any activity, there used to be some cost associated with it thay is classified into…

Q: As output increases, total fixed cost A. increases; decreases B. does not change; decreases C.…

A: total cost is the cost which is incurred by producer for production by using all fixe and variable…

Q: Explain in words why the Law of Diminishing Marginal Returns implies that there are increasing…

A: Law of diminishing marginal returns states that, as the production is continuous using factor of…

Q: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…

A: Marginal Cost(MC) is the increment in the total cost(TC) due to a unit increment in the amount of…

Q: a. Complete the following table and answer two questions about costs. Instructions: Enter your…

A: Here we calculate the following terms by using the given information , so the calculation of the…

Q: Refer to Figure 13-4. Curve A represents which type of cost curve? O marginal cost O average total…

A: The curve A is negatively sloped. It is continuously falling and never rises. Curve A is relatively…

Q: Why does the difference between AVC and ATC get smaller as Q increases? b) Why does MC intersect…

A: Since you have asked multiple questions we will answer the first three for you. The average cost…

Q: E AFC Q Quantity Refer to the above diagram. At output level Qtotal fixed cost is:

A: The total cost refers to expense obtained in reaching a particular level of goods and services. It…

Q: l in the column for marginal cost in the previous table. (Hint: MC = 4) l in the column for average…

A: In economics, the marginal price is the alternate withinside the overall price that arises whilst…

Q: Which of the following is true at the output level where average total cost is at its minimum? OA…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: 12. In the figure below, the vertical difference between curves Fand G measures Costs per unit TC…

A: If we look at the vertical distance between F and G you will see that initially there is a higher…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: The amount incurred on producing each unit of a commodity, in this case a bike, is known as the…

Q: 3. As marginal cost rises, average variable cost necessarily rises. True False

A: Marginal cost (MC) curve is the incremental cost of production, i.e. the cost incurred when one more…

Q: d. Which worker(s) are in the region of diminishing marginal returns? e. Which worker(s) are in the…

A: marginal cost is the extra expense caused by the creation of another unit of a decent or…

Q: 4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Dallas. The…

A: The given table can be completed by using the following formulas.

Q: What does average fixed cost fall with increase in output?

A: Fixed cost per unit of output is known as average fixed cost. Because the same amount of fixed costs…

Q: e) In the following diagram of cost curves, how many short runs have been created? State and explain…

A: Average short run curve: It refers to the curve which is a U shaped curve. It decreases the average…

Q: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…

A: Marginal cost is defined as the extra coat a firm incurs by employing an extra unit of input.

Q: a. Find the first, second and third derivatives of the following total cost function: TC(Q)=Q3…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 66. Which of the following cost curves is never U-shaped? A. O Average cost curve В. Marginal cost…

A: Which of the following cost curves is never U - shaped.

Q: variable costs (AVC), average total costs (ATC), and marginal costs (MC) to fill in the missing…

A: Fixed cost refers to the cost that stays same at all levels of output. Variable cost is the cost…

Q: A. Graph total fixed cost, total variable cost and total cost B. Explain how the law of diminishing…

A: Answer A. TVC + TFC = TC Both TC and TVC run in concurrently. The x-axis of TFC is parallel. At zero…

Q: Define explicit costs and implicit costs. b. Assume the following: * A firm buys a unit of…

A: Explicit cost is the cost that is incurred for paying external expenses like wages to employees,…

Q: Calculate VC, FC, AVC and AFC in the following table Out put Total cost Variable Fix Cost AVC AFC…

A: Total cost refers to the costs that are remaining the same for all level of production. Generally…

Q: il to his long run average cost of production ter than his long run average cost of production than…

A: Economies of scaleLong-run ATC falls as yield increments. Diseconomies of scale Long-run ATC ascends…

Q: Explain why marginal cost curve (MC) cuts average cost curve(ATC) and average variable cost (AVC) at…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: 3. As marginal cost rises, average variable cost necessarily rises. * True False

A: Marginal cost (MC) curve is the incremental cost of production, i.e. the cost incurred when one more…

Q: Hi, I am studying chapter 11 from Microeconomics 21st edition. I am still confused about a certain…

A: The marginal cost curve of a firm cut the average total cost curve at its minimum point. In initial…

Q: n the following questions take Q as 10. . Name the curves in the diagram. A B C . What is the amount…

A: Since you have asked multiple questions, we will answer only the first question for you. If you have…

Q: TUse the table below to answer the following questions. Assume that fixed costs are $100 and labor…

A: Given: Fixed cost = $100 Labor cost per unit (variable factor cost per unit) = $80

Q: fixed cost (AFC) curve?

A: Average fixed cost (AFC) is the per unit total fixed cost of production.

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given information: Ike Bikes is a manufacturer of bikes, currently producing bikes in its only one…

Q: uestion 13 of 15 Production and Costs: End of Chapter Problems 12. Consider the relationship…

A: There is a significant relationship between marginal cost and average total cost as any change in…

Q: Output AFC AVC ATC MC 0 $ --- $ ---…

A: When the price is $105, the price is just greater than he marginal cost (82) at the output level 4…

Q: Consider the following cost information for a pizzeria:Quantity Total Cost Variable Cost0 dozen…

A: Costs are the expenses that firms incur in the production of goods and services.

Q: 7) What is the relationship between AFC, AVC & ATC? How are these calculated? 8) A firms produces an…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: marginal cost curve and average variable cost (AVC) curve related?

A: The Marginal Cost shows the cost incurred on producing an extra unit of output. The Average Variable…

Q: A. Graph AFC, AVC, ATC and MC B. Explain the derivation and shape of each of these four curves and…

A: Answer A. The graph below shows all the four curves :

Q: 12 .knowing that the total cost function is: TC = 200 + 3Q, Calculate the average fixed cost when…

A: Total cost is the sum of total fixed cost and total variable cost. Average fixed cost is total fixed…

Q: 32. The marginal cost curve is labeled: a L b. I. C. II d IV

A: The Marginal cost curve is a curve which graphically shows the relation between the marginal costs…

Q: a. Why is the gap or difference between average total cost and average variable cost larger at…

A: Cost is a metric of the possibilities foregone when one product or task is chosen over another.

Q: 5. At its minimum point, the average total cost curve is intersected by the average variable cost…

A: 5) ATC or average total cost is the sum of average variable cost and average fixed cost. The fixed…

Q: How would each of the following affect average total cost, average variable cost, and marginal cost?…

A: GIVEN How would each of the following affect average total cost, average variable cost, and…

Q: Jane’s Juice Bar has the following cost schedules:a. Calculate average variable cost, average total…

A: The fixed cost is the cost that is associated with the fixed factors of production (factors that…

Q: Give the formulas for and plot average fixed cost, AFC, marginal cost, MC, average variable cost,…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: a) Complete the following table by filling in the fixed cost (FC), variable cost (VC), total cost…

A: Total Cost (TC) = Fixed cost (FC) + Variable cost (VC) or Variable cost (VC) = Total Cost (TC) -…

Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

I need the answer as soon as possible

42. What is the shape of the average
fixed cost (AFC) curve?
A. O U-shape
B. O Horizontal up to a point and then
rising
C. O Sloping down towards the right
D. O Rectangular hyperbola

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

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

Average 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?
Are fixed costs also sunk costs? Explain.
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
What are explicit and implicit costs?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
How does fixed cost affect marginal cost? Why is this relationship important?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Would you consider an interest payment on a loan to a film an explicit or implicit cost?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
What is a long-run average cost curve?
A firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and 200,000 on materials. What was the firms accounting profit?
A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?