_________ refers to the additional cost spent to produce one more unit of the product. a. Marginal cost b. Money cost c. Sunk cost d. Average cost
Q: Table showing Total Cost and Quantity of Output Quantity of Total Average Total Marginal Cost Output…
A: Average total cost of the total cost per unit of output. Marginal cost is the change in total cost…
Q: Quantity Average Fixed Cost Average Total Cost 1 140 2 75 3 60 4 55 5 54 6 20 60 Short run…
A: Diminishing returns to production starts where marginal cost increases with an increase in output,…
Q: In a short-run production process, a diminishing marginal product of labor explains why marginal…
A: Marginal Product of Labor: The term marginal product of labor shows that how much additonal or…
Q: Distinguish between/ among a. The short run total fixed cost, total variable cost and total cost…
A: Cost refers to the value of the resource(s) that gets exhausted in the process of production or…
Q: Total cost divided by quantity of outout is Select one: a average variable cost b. average total…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: (d) The long run average cost curve is U shaped because up to a certain point you have excess K/L…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the…
A: Formulas to be used:TC = VC+FCATC = TC/QAVC = TVC/QAFC = TFC/OMC = TCn - TCn-1
Q: Question 2 a. A producer borrows money and starts a business. He himself looks after the business.…
A: Total fixed cost (or also called TFC in short) denotes the portion of production cost remaining…
Q: An implicit cost is another name for a(n): Explicit cost Production cost Economic…
A: Option D Implicit cost is a cost to a business that occurs due to the cost of resources that were…
Q: Figure 7-4 Quantity of Output Total Fixed Cost Total Variable Cost $25 $25 $25 $25 $25 $10 $15 $25…
A: TC(total cost) is calculated as the sum of TFC(total fixed cost) and TVC(total variable cost), where…
Q: If Boeing produces 9 jets per month, its long-runtotal cost is $9 million per month. If it…
A: Costs are the expenses that firms incur during the production processes. The firm’s costs depend…
Q: Chapter 11 Production and Costs – Units of Total Marginal Product Total Variable АТС AVC MC Labor…
A: The total production process of a firm/company is an amalgamation of various costs, the optimum…
Q: DEFINE AND EXPLAIN PRODUCTION IN SHORT RUN
A: In the production process, different inputs are used to produce the final output. Each input has its…
Q: The table gives costs at Ahmad's Bike Shop. Unfortunately, Ahmad's record keeping has been…
A: Labor (workers) Output (bikes) Total fixed cost (dollars0 Total variable cost (dollars) Total cost…
Q: what is meant by the term Cost of production? Distinguish between fixed and variable cost. Why short…
A: One of the important motives for the firms operating in a market is profit. Profit is the difference…
Q: Refer to Figure: The vertical distance ABis Select one: A. total cost. B. marginal cost. C. total…
A: Curve 1 is the Marginal Cost(MC) Curve Curve 2 is the Average Variable Cost(AVC) Curve Curve 3 is…
Q: 1) In the following market, Marginal Product Marginal cost Workers Output Total Cost Average Total…
A: marginal product = change in total product/change in labor TFC is independent of output produced…
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: 1. Economies and Diseconomies of scale 2. Graph of marginal cost, average cost and average total…
A: Hi! Thank you for the question but as per the guidelines, we only answer one question at a time.…
Q: Question 2 a) A producer borrows money and starts a business. He himself looks after the business.…
A: An ‘implicit cost’ is a cost that not recorded for accounting purposes. ‘Implicit costs’ represent…
Q: 31. Marginal cost is a Total cost per unit of output b. Average total cost divided by the quantity…
A: 31) Marginal costs are defined as a function of the total cost of production, the costs include both…
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: lassify each individual element of cost according to its behavior pattern (fixed, variable, or…
A: Fixed costs, variable costs, and semi-variable costs are types of costs that are classified based on…
Q: Mention and explain the cost components certainly do not exist in the long run?
A: The cost components include fixed costs and variable costs. Variable costs are the costs which vary…
Q: The change in fotal costjof production as the output or total product of the business is expanded…
A: Marginal cost: It is the extra cost of producing an extra unit product.
Q: Farmer McDonald gives banjo lessons for $20 an hour. One day, he spends 10 hours planting $100 worth…
A: Accounting profit is the difference between total revenues and explicit costs where explicit costs…
Q: . A producer borrows money and starts a business. He himself looks after the business. Identify…
A: Note- Since you have posted multiple independent questions in the same request, we will solve the…
Q: Total Cost Fixed Cost Variable Marginal Cost Average Fixed Cost Average Variable Cost Average Total…
A: Total cost = Fixed cost + variable cost Also Fixed cost are same at every level of output.
Q: 3. Marginal cost a. Is below average total cost in the range where average total cost is rising b.…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: 4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $200 and the…
A: * SOLUTION :- By using the formulas we write the table AFC=FC/Q AVC=VC/Q ATC=AFC+AVC
Q: firm had sales revenue of $1 million last year. It spent $600000 on labor, $150000 on capital…
A: Following is the given information: Sales revenue = $1 million Amount spent on labor = $600000…
Q: The concept of marginal cost is best described by which of the following? O Mr. Creosote meets a…
A: Marginal cost refers to those cost that firm incurs when it decides to produce an additional unit of…
Q: Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant)…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Which cost inc with the increase in production? (a) Average cost. (b) Marginal cost. (c) Fixed cost.…
A: According to the given question The cost in economics are usually defined as the amount of the…
Q: 21) In the short run where total variable cost is ________ at a(n) ________ rate, marginal cost is…
A: Total variable cost refers to the total cost incurred by the producer in production activity and it…
Q: Quantity Average Fixed cost Fixed Cost Total Total Average Variable Total Cost Average Total cost…
A: A company must bear two forms of costs while production, variable costs and stuck costs. Variable…
Q: (d) Find the minimum average production cost per unit and the level of production that minimizes…
A: Average cost(AC) is defined as total cost(TC) divided by the total units produced. Here, units are…
Q: Quantity Total Cost Marginal Cost Using Total Cost (Dollars) Variable Cost Marginal Cost Using…
A: The firm produces the goods and services with the inputs of production using labor and capital. The…
Q: How profit is different from the incorporating normal profit and when the normal profit is into…
A:
Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…
A: Define economies of scale and explain why they might arise. When the long-run average total…
Q: 2. Find the volumes over which each site for making a product is the lowest cost. Site Fixed…
A: Given: Site Fixed Variable 1 20000 18 2 10000 23 3 32000 166 4 35000 20
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: Consider the following cost information for apizzeria:Quantity Total Cost Variable Cost0 dozen…
A: Costs are the expenses that firms incur in the production of goods and services.
Q: (1) Quantity of Output, Q (units) (3) (5) (2) Total Fixed Cost (S) Averoge Fixed Cost Average Total…
A: Costs are the expenses firms incur in the production of goods and services.
Q: a. Construct a diagram of the cost function, where you have the quantity on the X-axis and the cost…
A: Answer; PART A QUANTITY(q) cost(C) Fixed (FC) Variable. (VC) Marginal. cost (MC) Average T.…
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- What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?a. What is true about output levels 350, 700, 1,050, 1,400, and 1,750?Choices below. (Economic capacity ,Maximum cost, Economies of Scale b. What is the right size of a plant to produce an output of 875? (Plant1,Plant 2, Palnt 3, Plant 4, Plant 5) c. Between what plant sizes does the firm experience economies of scale? (Between plant1 and 3 ,Between plant 3 and 4, Between plant 3 and 5)what is meant by the term Cost of production? Distinguish between fixed and variable cost. Why short run average cost and marginal cost curve generally U-Shaped?
- a. Define economies of scale and explain why they might arise. Definediseconomies of scale and explain why they might arise. b. Explain the relationship between total product, marginal product, and averageproduct.c. How does fixed cost affect marginal cost? Why is this relationship important?True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered bycurrent decisions.2. It is possible for the economic profit and accounting profit to be equal to one another.3. If Ed<1, an increase in price leads to higher revenue.4. In the long run, at least some of the inputs should be variable.5. Production is a transformation of resources in to goods and services.True/False Marginal cost is the addition to the total cost when more unit of output is being produced.
- Explain and identify the relationship between total cost, average cost and marginal costusing diagram. How the short-run ATC curve is different from long-run ATC for afirm?Which cost concept helps firms assess the additional cost of producing one more unit beyond the current level? a) Total cost b) Sunk cost c) Marginal cost d) Average costQ: A farmer plane to harvest maize on his specific land. Discuss all factors of production whichhe need to harvest the whole season of crop. Also mentioned their rewards. Differentiate between economic profit and accounting profit, implicit explicit cost, total cost, variable cost, & average cost?
- ips Under decreasing returns to scale, average cost cost curve. as the quantity produced increases. Over this range of output, the marginal cost curve is Grade It Now the average Save & ContinueDefine economies of scale and explain why they might arise. Define diseconomies of scale and explain why they might arise. Explain the relationship between total product, marginal product, and average product. How does fixed cost affect marginal cost? Why is this relationship important?a. Give 2 examples of explicit cost b. Give 2 examples of implicit cost/opportunity cost/cost of ownership/cost of equity capital c. Imagine yourself as an entrepreneur. Pick any business you like. Run some numbers to calculate your accounting profit and economic profit. Show your numbers. Note: Make up those numbers yourself. d. After you have run the numbers, do you still want to start the business? Why or why not?
