Determine if the statements and expressions regarding costs are true or false. True False All costs are either fixed or variable. Average fixed cost is always higher than average variable cost. When fixed costs are positive, the average fixed cost curve is downward- sloping. The ATC is always greater than or equal to AVc. FC + VC The ATC crosses the MC at the lowest point on the MC. ATC = Q The ATC is rising when the MC is below the ATC. The ATC is increasing whenever the MC is increasing. The VC curve is modeled as a horizontal line. MC refers to the change in total cost associated with the production of another unit. TC = FC + VC + MC

Q: True or false? a. The AFC curve can never rise. b. Diminishing marginal product is a long-run…

A: The AFC stand for Average Fixed Cost curve which refer to that price of a commodity in the economy…

Q: ATC is decreasing, is ATC is above (greater), equal, or less (below) than MC? ________ choose one…

A:

Q: Rising short-run average variable costs of production for a firm indicate that   Question 4 options:…

A: Average variable costs are the costs incurred on variable factors or inputs per unit of output. The…

Q: If you know that with 8 units of output, average fixed cost is $12.50 and average variable cost is…

A:

Q: The MC curve must be * rising when TC is rising. less than AFC when the average cost is rising.…

A: Every production unit incurs certain amount of costs during production processes. These costs are…

Q: Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of…

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

Q: If Boeing produces 9 jets per month, its long-run total cost is $9.0 million per month. If it…

A: Economics of scale: It refers to the situation when increasing production leads to falling per unit…

Q: Given the cost information below, answer the following questions. Output Total Cost $10.00 1 19.76 2…

A: Hi! thank you for the question but as per the guidelines, we answer up to three sub-parts. Kindly…

Q: Determine if the statements and expressions regarding costs are true or false. The ATC is always…

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

Q: The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the…

A: Marginal cost: Minimal expense speaks to the gradual costs brought about while creating extra units…

Q: A firm produces 300 units of output at a total cost of $1,000. If fixed costs are $100, average…

A: Given: Total Cost = $1000 Fixed Cost = $100 Output = 300 units.

Q: Normal profits are Multiple Choice   the profits reported by accountants on a firm's annual…

A: ANS Profit is given by subtracting Total Cost (TC) from Total Revenue (TR). Mathematically it is…

Q: Find fixed cost if output is 20 units and AFC is $21

A: Given information, Total output= 20 units Average fixed cost (AFC)= $21 To find: fixed cost

Q: True or false. The U shape of the long-run ATC curve is the result of diminishing returns.

A: Average total cost:The term average total cost refers to the amount or magnitude that comes after…

Q: A new machine increases fixed cost and may or may not increase ATC as the…

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

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

A: (b) - False

Q: The average variable cost curve and average total cost curve tend to converge as output rises…

A: ATC = TC/Q AFC = TFC/Q AVC = TVC/Q   TC = TFC + TVC TFC = TC – TVC AFC = AC - AVC

Q: mine if the The ATC is rising when the MC is below the ATC. ATC= True FC + VC Q Answer Bank All…

A: Cost, in like manner use, the financial worth of labor and products that makers and shoppers buy. In…

Q: Diseconomies of scale occur mainly because

A: Diseconomies of scale is associated with the increasing cost per unit with increase in the scale of…

Q: A firm produces 400 units of output at a total cost of $1.000. If fixed costs are $200, average…

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

Q: Given below is a numbered list of cost terms. For the given definition statement. '_____ costs can…

A: The costs and revenue of the firms play an important role in the smooth functioning of the firms.…

Q: $100 90 80 70 60 50 40 30 20 10 1 2 3 4 567 89 10 Quantity of Output Refer to Figure 7-3. Which is…

A: please find the answer below.

Q: What is the relation between fixed costs and total costs?   Question 5 options:   Two of the other…

A: Fixed cost is a component of total cost and is defined as the cost of production that does not…

Q: Which of the following does NOT represent a fırm's explicit costs? O the firm's total accounting…

A: Explicit cost is the actual monetary expenditure to run a business Implicit cost is the opportunity…

Q: The MC curve crosses the ATC curve at ATC's minimum, because A. ATC is falling when MCATC B. ATC is…

A: Marginal cost refers to change in total cost with respect to change in output. Average total cost is…

Q: Determine if the statements and expressions regarding costs are true or false. True False Average…

A: We can re-create the table correctly as follows.

Q: The portion of a long run average cost curve that is downward sloping is called the range of: Group…

A: The long-run average cost curve is the cost curve which helps to analyze the cost function of the…

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: If average total costs increase when the output level increases, then there are diseconomies of…

A: The expenses that are being incurred for running a business and carrying out its various…

Q: Q45 When a factory is operating at the level of output where its short-run average total cost is at…

A: Short-run average expense (SRATC/SRAC) approaches average fixed expenses in addition to average…

Q: You are the owner of a small company that makes laptops at the price of $550. Your variable cost of…

A: The number of laptops can be found by equating price and the cost of producing laptops. We will find…

Q: Refer to the above diagram. Diseconomies of scale?

A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…

Q: firm aims at minimizing its cost. Which of the following statement is TI A. The firm's technology…

A: In economics, market structure describes how enterprises are distinguished and classified depending…

Q: Consider a firm that enjoys economies of scale. • If this firm wants to produce 25% more output, it…

A: In a market, economies of scale refers to the situation when a firm is experiencing an inverse…

Q: Original per unit cost of a hat New cost after the price decrease in labour if insufficient time to…

A: Originally 10 hats are produced using 16 capital and 7 labour. cost of capital = $10  cost of…

Q: Sea lions have been depleting the stock of steelhead trout. One idea to scare sea lions off the…

A: a. The total cost can be calculated by multiplying each unit with the total cost of producing each…

Q: During the last few days the Superior Company has been running into problems with its computer…

A: 'A' is a total cost of 1 unit and we know the average total cost from the table for 1 unit and that…

Q: manufacturer!s total cost is C(x) = 0.1x3 - 0.25x2 + 300x + 100 dollars, where x is the level of…

A: We calculate the total cost with x=6 and x=6.1 and then see the difference. TC(6) = 0.1(6)3 -…

Q: The business venture involves the sale of decorative jewelry cases. It costs the startup $280 to…

A: Answer: Given, The total cost of producing 40 jewelry cases = $280 The total cost of producing 60…

Q: Marginal cost _1. The additional cost from an additional unit of output produced. Production…

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

Q: Marc Nerlove conducted a classic study on economies of scale in the electric utility industry. I…

A: Economies of scale occur when the average total cost (ATC) decreases as output (Q) increases…

Q: Which of the following describes an implicit cost? NO opportunity cost is involved. NO outlay of…

A: Cost can be of two types, explicit cost and implicit cost.