Briefly explain (c) Why Marginal cost curve is U-shaped?

Q: 1. Chapter 11, 4.2, p.397 If the marginal product of labor is rising, is the marginal cost of…

A: The marginal product of labor refers to the change in output by employing one extra unit of labor.…

Q: What is Explicit Cost?

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: What are Sunk Costs?

A: A sunk cost refers to money that has been spent already and which is unable to recovered. In other…

Q: Explain using examples the difference between implicit and explicit costs

A: Cost refers to the sum of money a corporation spends on making or producing products or services.…

Q: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…

A: Marginal cost (MC) is that the cost of manufacturing an additional unit of output.Average variable…

Q: Complete the table, assuming that labour and materials cost $8 an hour. For all $ amounts, round…

A: (a) Table  Q Total hours Average hours=total hours/Q Marginal hours TVC =8× total hours…

Q: What are diminishing marginal returns? Using a diagram you have learned show and explain diminishing…

A: A production function shows the unique relationship between inputs and outputs. The change in output…

Q: Based on the graph provided  i. What is Freda’s marginal cost for each cookie? ii. What is Freda’s…

A: Marginal Opportunity Cost :  Marginal Opportunity Cost may be defined as that amount of a good…

Q: The table below shows Crystal’s total cost of producing different quantities of tie-dyed t-shirts…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost is total cost at 0 units and…

Q: Explain why it would cost Rafael Nadal or Venus Williams more to leave the professional tennis tour…

A: A cost that occurs without the exchange of money and that is not documented for accountancy purposes…

Q: During the recent auto sales slump, GM, Ford, and Chrysler decided it was cheaper to sell cars to…

A: The article mentions anout selling cars at a loss. It is referring to economic cost.

Q: Draw tfc, tvc, tc and marginal cost curve on the same graph.

A: To draw the graph of TC, TVC, TFC and MC random data have been taken.

Q: What is marginal cost? Fixed cost?

A: Costs refer to the expenditures which are incurred by the firms in order to purchase various factors…

Q: What is the relationship between the marginal cost (MC) curve and marginal product MP) curve of a…

A: The marginal product is the change in the total product when an additional unit of the variable…

Q: Graph the following: The Marginal Cost Curve crosses the Average Total Cost curve and Average…

A: The figure illustrates the MC, ATC and AVC.

Q: Question: Looking at the average total cost data, at what level of output does the diminishing…

A: The spreading effect is the effect which the increasing output has on the average total cost. As the…

Q: what is explicit cost with example

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

Q: Assume that the marginal cost of production is greater than the average variable cost. Can you…

A: The marginal cost of production is the incremental cost incurred when an additional unit of a good…

Q: 15. Explain the following: a) Why would a U-shaped Average Cost (AC) curve result from a Total Cost…

A:

Q: Briefly explain the short run fixed costs and the variable cost in modern economics?

A: Short-run is the time period that is less than or equal to a year. The costs can be divided into two…

Q: Is it possible to avoid Diminishing Marginal Return? Why? Explain

A: Law of diminishing returns postulates that as more units of a variable input are used with a fixed…

Q: How do you derive the marginal cost (MC) curve of a firm? Explain.     Answer question step by…

A: The total cost of a firm is the cost of producing the products which is the sum of total fixed and…

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: Marginal cost is ?

A: Microeconomics deals with the several components of a single firm or an individual. The subject’s…

Q: Hi, I am studying chapter 11 from Microeconomics 21st edition. I am still confused about a certain…

A: The marginal cost curve of a firm cut the average total cost curve at its minimum point. In initial…

Q: 2. (Module 55) Use the information in the table below to answer the following questions. Average…

A: a) Total fixed cost = Average fixed cost / output.

Q: The table below shows how the number of university classrooms cleaned in an evening varies with the…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Briefly write the behaviour of Average fixed cost when output increase

A: # By the name itself we can see that average fixed cost is on an average value of fixed cost…

Q: What is law of diminishing marginal returns

A: The law of diminishing returns is significant because it informs economists' beliefs that a firm's…

Q: In the short run, even when output is zero, the firm still has some variable costs it must pay." Is…

A: Concepts related to the question: i). Shutting down point- The point at which it is thought by the…

Q: The table below shows Crystal’s total cost of producing different quantities of tie-dyed t-shirts…

A: Total cost is the cost of producing a given level of output whereas the marginal cost the cost of…

Q: Using the following graph of the cost curves for a firm. Complete the statement below. yice

A: The firms short run capacity point is where MC = AVC In short run the firm starts its output at…

Q: The table below shows the cost data of a furniture manufacturer named Cindy’s Custom Made.a)…

A: Hi! thank you for the question but as per the guidelines, we answer only up to three subparts at one…

Q: The following table shows the end of the year account entries of a small company Item Amount ($)…

A: Implicit costs are those costs which does not include any payment of money and includes the cost of…

Q: 32. The marginal cost curve is labeled: a L b. I. C. II d IV

A: The Marginal cost curve is a curve which graphically shows the relation between the marginal costs…

Q: You are working for a company that does helicopter tours of the Grand Canyon. So far, you have…

A: (a) Initial total cost (TC1) = 500 By organising an additional tour, new average cost = 55 Hence,…

Q: The president of Toyota's Georgetown plant was quoted as saying, "Demand for high volumes saps your…

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

Q: What two lines on a cost curve diagram intersect at the zero-profit point?

A: For a perfectly competitive firm, average cost curve and marginal revenue curve intersect each other…

Q: Briefly explain  (a) Why the producer prefers stage 2 in production process.

A: There are three stages in the production process. Out of these three stages, the second stage is…

Q: Illustrate and briefly explain the relationship  between Marginal cost and average cost curves

A: The markets are the place where the buyers and the sellers of goods and services tend to interact…

Q: How do you derive the marginal cost (MC) curve of a firm? Explain.    use graph.

A: The marginal cost represents the change in the total cost of production that results in one new unit…