Before the point of diminishing marginal returns, marginal cost will be increasing. Group of answer choices True False

Q: economies of scale, followed by diseconomies of scale. increasing costs, followed by decreasing…

A: The average cost is the per unit cost of production . It can be determine by dividing the total cost…

Q: Answer the question on the basis of the following cost data.   Output Total Cost 0 $ 24 1 33 2 41…

A:

Q: If a firm's average total cost remains constant as output grows, the firm has constant returns to…

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

Q: Which of the following does not refer to diminishing marginal returns? O Increasing numbers of seat…

A: Diminishing marginal returns means the productivity or output falls with increase in the units of…

Q: Misleading product cost numbers are most likely the result of misallocating 1 direct material cost 2…

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

Q: 1 Average fixed cost equals a. Average total cost minus average variable cost b. Total variable cost…

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

Q: Classify the Costs for Predicting Cost Behavior?

A: Every company incurred the costs to produce goods and services. For example labor cost, and…

Q: If marginal cost is less than the average variable cost and output increases, average total cost…

A: Average variable cost(AVC) is the ratio of total variable cost(TVC) to output(Y). Average total…

Q: The differences between average total costs and average variable costs declines as a firms output…

A: The difference between average total cost and average variable cost declines as a firms output…

Q: Fixed costs decrease per unit of output as volume decreases. True O False

A: Fixed Cost is that cost which are not changed as output changed, that means if output increases or…

Q: Multiple Choice Question : 5.2) Which statement accurately describes the relationship between…

A: Answer: option a (Average fixed costs will always decline as the output increases) Explanation: The…

Q: Marginal cost is plotted (as an approximation) halfway between successive units of output. a. True O…

A: Costs represent the expenses that firms incur during their production activities. A firm incurs…

Q: If average cost is increasing over a range , it should be the case that a) marginal cost is smaller…

A: When MC < ATC, in this range ATC is decreasing. When MC > ATC, in this range ATC is…

Q: At zero output the total cost is 10 dollars and 20 dollars at one unit of output, the total fixed…

A: Total cost is the sum of fixed cost and variable cost in which fixed cost is independent of output…

Q: According to Accountants cost of production consists of both explicit and implicit cost ………………. a)…

A: (b) - False

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: Given that Production function: q = F(K, L) Wage for a labor, w = $500, Cost for one capital, v =…

Q: Which of the following best describes total fixed cost?a.The change in total cost when one…

A: Cost in the domain of accounting, the overall costs for a business may be classified into different…

Q: Average fixed cost is 0 at zero level of output True/False

A: # Average fixed cost is given by the ratio of total fixed cost and total quantity.

Q: q3- The average total cost curve is increasing when marginal cost is:   Select one: a.…

A: The relationship between ATC and MC is: When the MC curve is above the ATC curve then the ATC…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: Cost is minimized when isoquant is tangent to the isocost line. The isoquant Q = 100 is tangent to…

Q: When average cost decreases as output increases, Group of answer choices marginal cost is below…

A: The economies of scale curve is a long-run average cost curve since it permits all variables of…

Q: True or false The unit share of fixed costs changes in a direct direction with the change in the…

A: Fixed cost: It is the cost that remains constant and does not get affected by the increase or…

Q: When marginal cost exceeds average total cost, a marginal cost must be rising. b average total cost…

A: MC(marginal cost) & ATC(average total cost) are both U-shaped curves and MC cuts/intersects ATC…

Q: Given the following cost functions: TC=100+60Q-3Q2+0.1Q3 TC=100+ 60Q+3Q2 TC=100 + 60Q In each…

A: TC=100+60Q-3Q2+0.1Q3 AC=TC/Q= 100/Q+60-3Q+0.1Q2 In this case FC= 100 VC= 60Q-3Q2+0.1Q3 AVC=VC/Q=…

Q: Total variable cost as output increases, and total fixed cost as output increases Select one: A.…

A: The variable cost is the cost that changes when the output changes. This includes labor cost, cost…

Q: TV manufacturer can produce 200 TVs in a month at a total $140000 and 400 TVs at a total cost…

A: Given the cost for production of 200 Tvs is $140,000. Therefore, the fixed cost is $140,000 as it…

Q: Jeb owns a small marketing company, which he operates from a home office. Jeb’s home office is an…

A: Fixed Cost remains same at all levels of output. Marginal Cost is the additional cost incurred while…

Q: As long as marginal cost is below average cost, average cost will be a. falling b. rising. .…

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

Q: Diminishing marginal returns implies:

A: Diminishing marginal returns  The law of diminishing returns is the fundamental principal of…

Q: Marginal cost is defined by: (a) total cost increases when one more unit is produced. (b) fixed…

A: In economics, cost is further classified as marginal cost, fixed cost, variable cost, average…

Q: Which of the following statements is true? Costs are always explicit, never implicit. Costs are…

A: Cost is the expenditure incurred by the firm on purchase of factors of production for the production…

Q: True or false:  a change in fixed costs will change average total cost. a.True b.False

A: The measure that depicts the expenses that are incurred for carrying day-to-day expenses of the…

Q: A marginal cost fiction C'(q) is given in the figure below. If the fixed costs are $10,000,…

A: Marginal cost is defined as the cost of producing an additional unit of the output. Marginal cost is…

Q: True or False The average total cost cannot equal marginal cost.

A: Average total cost It refers to the total cost per unit of production. ATC = TC/Q where ATC is…

Q: Average cost is defined as __________

A: In economics we come across the term total cost which shows the relationship between cost incurred…

Q: Which of the following relationship is correct? When marginal product (MP) starts to increase;…

A: MP is the marginal product which is the additional product produced with an additional unit of…

Q: A firm earns normal profit Selected Answer: c. when explicit costs equal implicit costs. Answers: a.…

A:

Q: Q15 _____ cost declines over the whole range of output. a. Average variable. b. Total variable. c.…

A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…

Q: The cost that cannot be recovered if a firm goes out of business is known as __________. a. Cost of…

A: If a firm goes out of business then some of the costs can not be recovered such as Advertising…

Q: Compare and contrast economies of scale and economies of scope. Give an example of each from your…

A: Introduction Economies of scale: Economies of scale occur when the quantity of goods increases and…

Q: d. Show that the cost function is non-decreasing in w,r and q.

A: Cost function is non- decreasing in w, r and q