Distinguish between/ among a. The short run total fixed cost, total variable cost and total cost b. Implicit and explicit cost c.the short run avarage fixed cost, average variable cost and average total cost

Distinguish between/ among a. The short run total fixed cost, total variable cost and total cost b. Implicit and explicit cost c.the short run avarage fixed cost, average variable cost and average total cost

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 5CQQ

See similar textbooks

Related questions

Q: Cups of FroYo Workers Labo r Cost Other Variable Input Variable Total Average Average Average Cost…

A: total cost is defined as the sum of all the expenses incurred by the producer to produce goods.…

Q: 36) In the short run, if marginal product is A) above; decreasing B) below; decreasing C) above;…

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

Q: Question: What are the kinds of cost which firm face in short run. Explain theoretically and…

A: Short run is the time period wherein some inputs are held fixed while other inputs are variable. In…

Q: 1. Show and explain the relationship between total cost, marginal cost and average variable cost

Q: Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the…

A: Formulas to be used:TC = VC+FCATC = TC/QAVC = TVC/QAFC = TFC/OMC = TCn - TCn-1

Q: he short-run and long-run average cost functions of a firm are generally U-shaped. This implies high…

A: In economics, a CF {"cost function"} is described as a function of an output quantity and P {prices}…

Q: Course: Microeconomic - Long and short run costs The company "Mr. Tomas" manufactures tricycles…

A: Tricycle is a function of function of two set of inputs : Steering wheel , seat & frame : (v)…

Q: What are the kinds of cost which firm face in short run. Explain theoretically and graphically the…

A: Cost is the money that is used to produce goods and services.

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

A: Costs are the expenses that firms incur during the production processes. The firm’s costs depend…

Q: (a) Define economies of scale and explain why they might arise. Define diseconomies of scale and…

A: Part (a) Economies of scale arises when the long run average total cost curve declines as output…

Q: A D Quantity (units per day Curve C represents which type of cost curve? O A. marginal cost (MC) B.…

A: Average total cost is the sum of average Fixed cost and average variable cost. Average Fixed cost…

Q: ane's Juice Bar has the following cost schedules: n the following table, complete the marginal cost,…

A: We have given that Cost in dollars Quantity Variable cost Total Cost Marginal Cost Average…

Q: Chapter 11 Production and Costs – Units of Total Marginal Product Total Variable АТС AVC MC Labor…

A: The total production process of a firm/company is an amalgamation of various costs, the optimum…

Q: Define fixed and variable costs of production. Why do you think bigger firms may have lower average…

A: Answer: Fixed cost: it refers to the cost that is constant in the short run and it does not change…

Q: Average and marginal products AP, MP 2,700 2,025 1,925 1,800 Average Product 825 Marginal Product 01…

A: Average variable cost: It is the total variable cost of a unit of goods. Variable costs keep on…

Q: Explain and identify the relationship between total cost, average cost and marginal cost using…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: bath the marginal cost and the average variable cost curves are U-shaped, at the minimum point of…

A: Average total cost is the sum of average Fixed cost and average variable cost. It is referred as…

Q: Problem 2, From the data given below, calculate: O Average fixed cost, (ii) Average variable cost,…

Q: e) In the following diagram of cost curves, how many short runs have been created? State and explain…

A: Average short run curve: It refers to the curve which is a U shaped curve. It decreases the average…

Q: In long run production, which of the following does NOT fluctuate? OA All costs can fluctuate in…

A: Money has been evolved since the ages and everyone uses money for number of purposes. There are…

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: Disclaimer :: as you posted multiple questions we are supposed to solve the first one only. Cost is…

Q: A. Graph total fixed cost, total variable cost and total cost B. Explain how the law of diminishing…

A: Answer A. TVC + TFC = TC Both TC and TVC run in concurrently. The x-axis of TFC is parallel. At zero…

Q: Cost LRAC A Quantity Figure 1 Long run average cost curve for a firm Figure 1 shows a long run…

A: We have to find Long run average cost curve.

Q: Units of Fixed Variable Total Marginal Average Output Cost Average Variable Cost Total Cost Average…

A: Total cost is the sum of fixed and variable costs. Marginal cost is the addition to the total cost…

Q: Camplete all missing valucs in table below: Labor Output Fixed Variable Total Average Average…

A: Labor Output(Q) Total Fixed cost VC($) TC=FC+VC($) AFC=TFCQ($) AVC=VCQ($) ATC=TCQ($)…

Q: ben diseconomies of scale occur: A the long-run average total cost curve B. marginal cost intersects…

A: Firm produces final goods and services using the factors of production which are broadly divided…

Q: Ball Bearings, Inc., faces costs of production asfollows:Quantity (cases) Total Fixed Cost Total…

A: There are two components of Total cost (TC) - Total Variable Cost(TVC) and Total Fixed Cost (TFC).…

Q: lassify each individual element of cost according to its behavior pattern (fixed, variable, or…

A: Fixed costs, variable costs, and semi-variable costs are types of costs that are classified based on…

Q: one input and derive the short-run cost function. Show that long-run average and marginal cost are…

A: The Cobb-Douglas production function depends on the observational investigation of the American…

Q: The change in fotal costjof production as the output or total product of the business is expanded…

A: Marginal cost: It is the extra cost of producing an extra unit product.

Q: Solve the following Workers Output Marginal product Total costs ATC MC 0 0 1…

A: since you have asked a multipart question and according to our policy we can only solve the first 3…

Q: a) "The above production schedule shows that the firm is producing in the long run because quantity…

A: Answers 1) The labour cost is BDT 25 and the capital cost is BDT 25. a) This statement is false…

Q: Using the following table a) construct the cost schedule for a firm operating in the short run b)…

A: The cost structure of a firm is important in determining its profits. It helps a firm in knowing how…

Q: 6. Identify the short run cost curve for the variable cost: a). Curve 1 b). Curve 2 c). Curve 3 d).…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: 2. As an employee of the Rays-R-Us Corporation (a solar panel company), you have been asked to…

A: a.Total cost and long run average cost for quantity 1:Total cost and long run average cost for…

Q: Quantity of Output Fixed Cost Variable Total Cost Cost $23 $33 2 S38 $60 4 $54 5 S80 S88 $113 $155…

A: A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or…

Q: antity (Q) Fixed Cost Variable Cost Total Cost Marginal Cost Average Fixed Cost Average…

A: Fixed cost is independent of output produced thus FC=$100

Q: Using the following table a) construct the cost schedule for a firm operating in the short run b)…

A: Revenue: It refers to the profit that is earned by the firms when they produce more goods and…

Q: 8. Which one of the following cost can never become zero? (A) (B) (C) (D) Average cost Fixed cost…

A: Answer according to the given question Option(B) is correct that it is the fixed cost which cannot…

Q: (1) Quantity of Output, Q (units) (3) (5) (2) Total Fixed Cost (S) Averoge Fixed Cost Average Total…

A: Costs are the expenses firms incur in the production of goods and services.

Q: Give the formulas for and plot average fixed cost, AFC, marginal cost, MC, average variable cost,…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Question

Distinguish between/ among

a. The short run total fixed cost, total variable cost and total cost

b. Implicit and explicit cost

c.the short run avarage fixed cost, average variable cost and average total cost

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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: Concept

Step 2

Step 3

Step 4

Step by step

Solved in 4 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

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 shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
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?
How does fixed cost affect marginal cost? Why is this relationship important?
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.