Question 8Average total cost is equal to:O Total cost divided by marginal cost.Total variable cost divided by total fixed cost.O Fixed cost divided by total output.Total cost divided by total output.Fixed cost divided by number of workers.

Total cost is the sum of total variable cost and total fixed cost i.e., TC = TVC + TFC Total cost…

Answered: Average total cost is equal to:

Business

Economics

Average total cost is equal to:

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

See similar textbooks

Related questions

Q: Techware Incorporated is considering the introduction of two new software products to the market. Th...

A: Techware Incorporated had four choices present: either none of the two items, present item 1, presen...

Q: increase in al O a. Price level incases. O b. Real GDP and price level increase. O c. Interest rates...

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If yo...

Q: Which of the following statements are correct? Select one: O a. Households smooth their consumption ...

A: In macroeconomics, the household sector consumes the final items created by the production sector. I...

Q: What is the role of aggragate demand in eliminating the GDP gap?

A: The aggregate demand curve shows that the different quantities are demanded at the various price lev...

Q: 3. An amount of 100,000 was borrowed and was to be repaid in 10 instalments at the end of every quar...

A: P= 100,000 r= 12% compounded semi annually = 12%/2 = 6% Number of years= 2.5 years (10 installme...

Q: wo firms with the same (constant) marginal costs are engaging in Bertrand competition. One of the co...

Q: Suppose that the price elasticity of beer demand is 0.8 (Ea = 0.8) and the price elasticity of beer ...

A: The formula for determining the consumer's tax burden is: (Elasticity of Supply)/(Sum of both elasti...

Q: What is the difference between independent floating, managed floating, and fixed exchange rate syste...

A: In the international market, when countries decides to make an economic exchange, the price of the g...

Q: How Zuwaina is helping Oman’s economy, explain?

A: In this situation, Zuwaina, the Chief Executive Officer of Dar Al Herfya (World of Handicrafts), spe...

Q: Discuss the forms of competition that exist in a market.

A: Market refers to the system under which buyers and sellers interact with each other to strike a deal...

Q: Proponents of socialism contend that it willa. prevent workers from exerting significant control ove...

A: Meaning of Economics: The term economics refers to the situation under which there remain transact...

Q: 1. A company is considering opening a new product line. The building being considered will have a mo...

A: The point where the costs of producing a product equal its revenue is called the break-even point.. ...

Q: In comparing alternatives I and J by the present worth method, the equation that yields the present ...

A: The correct answer is given in the second step.

Q: Answer the following, providing a graphical illustration along with your answer where necessary: a) ...

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost th...

Q: leulále the quantities of crude oil and beef produced in each country in autarky (when they do not t...

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for you...

Q: Determine the total amount of an investment of $9750 for 25 years, at an interest rate of 7.2% compo...

Q: Which statement is incorrect? a. When a company increases its degree of financial leverage, the sta...

A: Operating a business requires a certain amount of capital. A company's capital structure is used to ...

Q: How does an increase in household income affect firms?

A: A household is basically made up of one or more people who live in the same home and eat together.It...

Q: In a competitive market with free entry and exit from the market a permanent rise in demand will lea...

A: A permanent increase in demand raises market quantity, and the market price for each business climbs...

Q: Using the information in the following table on Mexico’s 1996 international transactions to answer t...

A: Balance of trade is defined as the difference between the value of exported and imported goods and s...

Q: 15,000 =(1+r) 3500+24000 How do I find what is interest (r)? Please provide an breakdown of calculat...

Q: Problem 2. Consider the following Phillips Curve n = En – 0.6(u – 0.05) a) Explain the above Philips...

A: When represented or charted graphically, the Phillips curve illustrates an inverse relationship betw...

Q: 10. Assume that a consumer's income is high enough so that with quasilinear preferences, her demand ...

A: Price Effect/ Total Effect: The price effect refers to the change in demand of a good due to a chang...

Q: Consider an infinitely repeated game where the stage game is the game of chicken: Swerve Straight Sw...

A: Given game is chicken game in which each player wants to win the game over tying the game. Given pay...

Q: The sales of a company rose from dollar 40,000 in March to dollar 48,000 in April 2002. company expr...

Q: An amusement park has 1 000 visitors every Saturday and charges $55 per person to enter the park. Re...

Q: The below graph shows the market of computers. The equilibrium is at point "E": Price $700 650 600 5...

A: Total surplus is the sum of consumer surplus and producer surplus.

Q: What is relationship between social welfrare and economic growth ?

A: Social welfare refers to the concept to study about. The betterment of the whole society in terms of...

Q: Mention two approaches used in studying industrial economics (Industrial Organization), give an expl...

A: The industrial economy refers to activities that combine production elements (facilities, supply, la...

Q: Three former Uruguayan presidents recommended the current administration that without abandoning Mer...

A: Mercosur was created in 1991 as a procedural and economic group that was open and active. Since its ...

Q: A juice producing company operates in a perfectly competitive market and is therefore a price taker....

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the mark...

Q: Explain Keynes’s theory of investment and why it is central to his more general theory of output and...

A: Mistrust of the rationality of free-market decision making pervades the atmosphere. A book by Englis...

Q: explain what is meant by intermediate products and the role they play in the production function

A: Consumer goods are those goods which are purchased by the consumers for direct consumption and satis...

Q: onsider the following market supply and demand information for cigarettes: Price ($) ...

A: A larger tax burden falls on that side of the market (sellers or consumers) which is relatively pric...

Q: According to the Coase theorem, private parties can solve the problem of externalities if Group of a...

A: The Coase Theorem is best explained by way of a real-world case study. A prominent example of an ext...

Q: Refer to the graph shown. Within which section(s) of the production function is marginal product dec...

A: Here, the given graph shows the production function of a firm to explain the different phases of the...

Q: can you kindly assist with the role of informal sector in economic development of the local area.

A: The informal sector consist of a wide range of economic activities, businesses, employment, and empl...

Q: Using Harrod-Domar Growth Model If a net savings rate is equal to 5% and a capital-output ratio is ...

A: Given Saving rate s=5% capital-output ratio (K/Y)=2 We have to find the GDP growth rate.

Q: Provide and briefly explain the various oligopoly models.

A: The market is a location where the transaction of services and commodities takes place. It is import...

Q: Total Total Marginal Marginal Price Cost $5 $5 $5 $5 $5 $5 $5 $5 Quantity Revenue Revenue Cost $0 $5...

A: Introduction Here data of total cost, total revenue a firm has given. And we have calculate its marg...

Q: What are the characteristics of a steady state in the Solow growth model?

A: The exogenous growth model, sometimes known as the Solow–Swan model, is a long-run economic growth m...

Q: A. At XYZ Restaurant, which sells only pepperoni pizza, has the cost profile: (Note that variable co...

A: Given; Fixed costs= $5650 Variable costs= $5.56 Price= $10

Q: Shiela bought a new phone and paid $10,000. This means that her marginal utility from this new phone...

A: Here, it is given that Shiela bought a phone and she paid $10,000 for the phone.

Q: The past records of a factory using quality control methods show that on the average 4 articles prod...

Q: Why is investment an important component in a country's output? what theory supports investment in ...

A: To spur economic growth, a country must acquire or mobilise funds in order to invest in the economy'...

Q: Tom's utility function is u(x,x,) = In(x,)+2 In(x,) and Sally's utility functic u(x,,x2) = min{x, } ...

A: utility function is an important concept that measures preferences over a set of goods and services....

Q: The stimulus check is an example of Select an answer and submit. For keyboard navigation, use the up...

A: Stimulus refers to the measures adopted by the government to stimulate the economy. Stimulus checks ...

Q: aggregate demand for coffee is D(p) = 10 - (3/4)p and the aggregate supply S(p) = 5p then what is th...

A: As given Aggregate Demand D(p) = 10-(3/4)p Aggregate Supply S(p) = 5p

Q: Jess is an artist and spends all of her income on pen and pencils. Pen costs $4 per piece and pencil...

A: Jess is an artist and spends all of her income on pen and pencils. As given price of pen is $4 per p...

Question

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
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?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Are fixed costs also sunk costs? Explain.