Average cost curves (except for average 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. Do you think that average and marginal cost curves have the same general shape and why?

Q: Why the average cost curve is a U shaped curve?

A: # The total cost per unit of output is reffered to be as the average costs.

Q: Answer the following with the required graph. a) Describe the shape of the average fixed cost. b)…

A: The money spent to purchase the fixed and variable factor of production to produce the goods and…

Q: Explain why the fixed cost has no influence at all on marginal cost.

A: In the short run, a firm will have two types of cost: fixed cost and variable cost. Total variable…

Q: How is the difference between average total cost and average variable cost impacted by an increase…

A: Average total cost is the total cost per unit whereas average variable cost is the total variable…

Q: The long run average cost curve is U shaped because up to a certain point you have excess K/L and…

A: Total cost refers to the total amount of expenditure incurred by the firm ti produce the given…

Q: What effect, if any, does diminishing marginal product have on the shape of the marginal cost curve?

A: According to the law of diminishing marginal returns, after a certain level adding additional units…

Q: Explain how input, output and cost are interrelated

A: A business needs to make use of inputs for turning them into outputs that could finally be sold in…

Q: What is the Difference between Fixed Costs, Variable Costs, and Marginal Costs?

A: Fixed cost: Fixed costs are those costs that remain fixed for every unit of output produced. It does…

Q: Explain why the marginal cost curve intersects a U-shaped average cost curve at its minimum point.

A: Marginal cost (MC): - it is the additional cost incurred due to the production of additional units…

Q: Use the cost table below to find the following marginal costs.   Output quantity Total variable cost…

A: Marginal cost is the additional cost incurred from producing an additional unit of output.

Q: What explains why the long run average cost curve is u-shaped

A: First of all average cost fall in the beginning because the factor of production or the capital used…

Q: how is the slope of the total cost and marginal cost related?

A:

Q: Why does the average fixed cost falls with the increase in output?

A: Fixed cost is that cost which doesn't Change in the short run as the production proceeds.  Average…

Q: Show me how to arrive at Average Variable Cost?

A: Total variable cost varies with the level of production.

Q: . The marginal cost curve intersects the average fixed, average variable, and average total cost…

A: Answer to the question is as follows:

Q: Graph the following: The average fixed cost curve will never intersect with either the horizontal…

A: In the short run, a firm will have two types of cost: fixed cost and variable cost. Total fixed cost…

Q: Use the cost table below to find the following marginal costs. Output quantity Total Variable Cost…

A: The cost structure of a firm determines its productivity. The total cost of a firm comprises of…

Q: What are a total variable cost and average variable cost?

A: Total Variable costs are those costs that change when the input changes. For example-wages, when…

Q: Define total cost, average total cost, and marginal cost.  How are they related?

A: Total Cost (TC) is the cost of production of a good and it includes both the variable cost i.e. the…

Q: What will happen to the average total cost if the average variable cost is falling? a. Rises B.…

A: The average Total cost if the the average variable cost is falling is also falling.

Q: If we have information about workers’ marginal products, then total and average product can be found…

A: Summing the marginal values will give total product.

Q: Marginal cost curve always cuts the lowest point of the average total cost curve. Do you agree?…

A: Marginal Cost:Marginal cost refers to the additional cost of producing the additional unit of…

Q: Why is the average cost a U shape

A: Cost refers to the amount of money required to produce the goods and services by the various factors…

Q: You are told that the marginal cost of production is increasing. Is it possible to determine whether…

A: Marginal cost of production refers to the additional cost of producing one extra unit of output,…

Q: If the marginal cost equals average cost, we are at the _____ point of the ____ curve.

A: Marginal cost is that cost which is incurred because of producing one additional unit of the output,…

Q: When plotting marginal and average cost curves, the cost curve always crosses the cost curve at its…

A: Average fixed cost (AFC) refers to per unit fixed cost of production.AFC = TFC / QIt is rectangular…

Q: Which average cost curves are U-shaped?

A:

Q: If marginal cost is less than average cost, average cost must fall when more units are produced.…

A: The marginal cost is change in total output when one additional unit of input is used.

Q: is it true that the marginal cost curve intersects the average variable cost curve at the break-even…

A: Marginal cost: It is the cost that is incurred by the firm to produce one extra unit. Average…

Q: If the marginal cost of production is greater than the average cost, in what direction must the…

A: If marginal cost is higher than average cost it means the slope of average cost will be higher than…

Q: What is the relationship between marginal product and marginal cost? Why do you suppose that is? Is…

A: Marginal Product: The term marginal product refers to the increase in total product due to the use…

Q: Graph the following:  Average Total Cost curve and Average Variable Cost curve with proper…

A: Average total cost refers to per unit cost of production which is calculated by dividing total cost…

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: is it true that the marginal cost curve is represented by a quadratic equation if the total cost…

A: When a firm generates output to earn revenue, it tries to serve an output level at which it is able…

Q: Give an quantitative example of marginal and average cost.

A: Average cost is the equivalent of total fixed cost (TFC) and total variable costs (TVC) divided by…

Q: how do you find total fixed cost?

A: Sellers must incur costs while producing goods and services by making a variety of factor payments…

Q: How do we calculate each of the following: marginal cost, average total cost, and average variable…

A: The total cost(TC)  is the production cost incurred on engaging various inputs i.e land, capital,…

Q: With appropriate examples explain how marginal cost is related only to total variable cost.

A: Cost Cost refers to the actual expenditure on inputs (i.e. explicit cost) and the imputed value of…

Q: The average variable cost curve and the average total cost curve get closer to each other as output…

A: The average variable cost refers to the variable cost per unit. The average total cost is the…