A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total costs. If it produces an additional watch, will its average total costs rise, fall, or stay the same?

Q: Universal’s variable cost to rent a car is $15. Assume the fleet size is fixed at 21,666. How many…

A: Given information Universal's variable cost to rent a car is $15 Fleet size is fixed at 21,666 The…

Q: Why will firms in most markets be located at or close to the bottom of the long-run average cost…

A: In the long run, all the costs are the variable costs. In long run, costs are lower than that of in…

Q: Suppose you own a television factory and at your current level of output, you have average total…

A: Meaning of Average Total Cost (ATC): The term average total cost refers to the addition of the…

Q: A weaver working with a handloom is able to produce 16 yards of fabric per day. The typical weaver…

A: Production costs are the overall costs of producing a product or providing a service, including…

Q: Calculate the Marginal Cost at Q 200? Calculate the Marginal Cost at Q 300? Calculate the Average…

A: the marginal cost is the change in the total cost that arises when the quantity produced is…

Q: Are all fixed costs also sunk costs?

A: Sunk Cost: It refers to the cost that is once incurred can’t be recovered.Fixed Cost: It is the cost…

Q: What is optimization? How does it blow up the myth about profit being a result of a mere…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: Consider the table below that describes the costs associated with producing a good (Q). Total…

A: Marginal cost refers to the additional cost of producing one more unit of output.

Q: People often believe that large firms in an industry have cost advantages over small firms in the…

A: Individuals generally feel that big businesses have economic benefits in a sector over smaller…

Q: In a furniture market, if a furniture company is analyzing the short run total costs, one of the…

A: Here, it is given that a firm in the furniture market is analyzing its short-run total cost.…

Q: draw the marginal and average cost curves of companies p and q where Firm p: Cost= 4Q Firm q: Cost =…

A: Answer -    Average Cost = Average cost is cost per unit  Marginal cost = It is the cost a firm…

Q: A firm’s total cost of production is given by TC=100q+100q^2. Are the returns to scale increasing,…

A:

Q: Use Exhibit 2. For Comfy Chair Factory, which of the following statements is (are) correct? (x) The…

A: Total cost is the summation of Fixed cost and variable cost . Where varible cost when there is no…

Q: Introduction to Calculus in Economics (continued): In the previous Problem Set question, we started…

A: Differentiation is the process of finding derivatives. It basically gives the rate of change in one…

Q: Assume that for a quantity produced of 20, the total cost is 500 and the average fixed cost is 10.…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: A weaver working with a handloom is able to produce 16 yards of fabric per day. The typical weaver…

A: Total cost of production is the total expenditure incurred by the firm on production of the final…

Q: Where Q = quantity, TC = total cost, TFC = total fixed cost, and TVC = total variable cost; average…

A: The average variable cost is the total variable cost per unit of output. The total variable cost is…

Q: the short run, a firm's average variable cost will increase as its output increases because

A: The variable cost refers to the cost which changes with change in the level of output.  AVC = TVC/Q.

Q: If a firm is using optimal input proportions, it is minimizing its costs

A: A firm determines optimal input proportions by equating the slope of the isocost line with the slope…

Q: Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: Assuming, along these lines, a firm needs to build production in the short-run, it can do as such…

Q: Suppose Honda's total cost of producing 4cars is $225000and its total cost of producing 5cars is…

A: Given, Total cost of producing 4 cars = $225000 Total cost of producing 5 cars = $ 250000

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: Continuing to refer to Table 7.9 and Figure 7.7, compute the average total cost, average variable…

A: * SOLUTION :-    Given that ,

Q: A weaver working with a handloom is able to produce 13 yards of fabric per day. The typical weaver…

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

Q: ohnson produces bottles. Suppose q is the quantity of bottles produced. Her Total Costs are given by…

A: Average cost = total cost/ q take first order and second order condition for minimum value of…

Q: 2. Trapper Joe, the fur trader, has found that his production function in acquiring pelts is given…

A: Given: q = 2H0.5 H= q2/4 Now, it is given that per hour a worker earns $8. Therefore, Total cost…

Q: Where average costs of production are lowest when all output is produced by a single firm

A: Average cost curve: It is a cost bend which is commonly U-shaped. Average variable cost (AVC) is…

Q: Consider Firm GM, a car manufacturer. Suppose you have some information regarding the cost curves of…

A: Average cost is initially more and then decreases.

Q: you assume that a firm has a U-shaped average cost curve, why would large and small firms have…

A: The economies and diseconomies of scale lead to the U shaped average cost curve.

Q: Suppose a firm faces a cost function of C = 8 + 4q + q^2, so that its marginal cost is MC=4 + 2q. a)…

A:

Q: A weaver working with a handloom is able to produce 11 yards of fabric per day. The typical weaver…

A: Per day production by handloom = 11 yards Per day payment to worker =$10 Per day production by…

Q: Marginal cost is given by the slope of total variable cost (TVC) curve, but not the slope of the…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: If production increases, what happens to average variable cost (AVC), does it increase only,…

A:

Q: Showing your analytical work clearly in a step by step manner is a must. Otherwise points will be…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: If the Marginal Cost for a product is found to be MC= 8x+60 , and the Marginal Revenue is given as…

A: The marginal cost(MC) is the cost of manufacturing one more unit of output(o/p). Whereas the…

Q: Do you think that the taxicab industry in large cities would be subject to significant economies of…

A: The economies of scale arise when a firm produces a large quantity because as the production…

Q: please pick an example of three types of costs that a business can incur and briefly explain whether…

A: Fixed Costs are those costs that remain constant at all levels of output.  Variable Costs are those…

Q: Is it true that if a firm’s technology exhibits the decreasing return to scale, then average…

A: Introduction The scale of production in two factor production function means a given amount of labor…

Q: Why is the Average Variable cost U-shaped

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

Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: For the operator of a movie theater, the marginal cost (MC) of admitting one more person to the…

A: Marginal cost is an additional cost incurred by the producer in order to provide additional goods or…

Q: Consider the following table illustrating the production function of gadgets. Furthermore, suppose…

A: Answer to the question is as follows :

Q: The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable…

A: Average fixed cost (AFC)=Total fixed costQ AFC=10000010000=10

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: Marginal cost (MC) is the change in total cost or total variable cost per unit change in output.

Q: When a firm produces one unit, the variable cost is $8. When the firm produces two units, the…

A: Marginal cost is the addition to the total cost. Total cost consists of total fixed cost and…

Q: A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of…

A: Returns to scale state the effect on the output level due to the increase in the production inputs.