Do AC and AVC intersects each other?

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: What are the positive and negative effect of economic factors to the operation system?

A: An economic factor is anything that might potentially change or affect a person's financial…

Q: What effect, if any, does diminishing marginal product have on the shape of the marginal cost curve?

A: According to the law of diminishing marginal returns, after a certain level adding additional units…

Q: How does optimization blow up the myth about profit being a result of a mere increase-decrease…

A: A technique for improvement of efficiency of products, processes, or other entities through…

Q: What is the Difference between Fixed Costs, Variable Costs, and Marginal Costs?

A: Fixed cost: Fixed costs are those costs that remain fixed for every unit of output produced. It does…

Q: Explain the relationship between AC and MC.

A: The average total cost is the ratio of the total cost of production and the quantity of output…

Q: What is constrains optimization, explain

A: Constrained optimization in mathematical optimization is the process in which we optimize an…

Q: what are the three stages of production? explain with TP, MP, and AP graph

A: The three stages of short-run production are readily seen with the three product curves--total…

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: for these two graphs answer the following question what is the fixed cost?

A: Cost refers to the expenditure incurred by the producer for producing a given level of output. There…

Q: total revenue (TR) and total variable cost (VC) if the price is equal to the AVC

A: Relationship between TR and TVC 1. TR represents sum of MR and TVC represents Sum of MC  Gross…

Q: Briefly describe the flow of costs in a manufacturing company?

A: Cost flow refers to how or the direction by which costs pass through a organization. Usually, the…

Q: Give a numerical example to show that as marginal physical product (MPP) rises, marginal cost (MC)…

A: Marginal Physical Product (MPP) is the addition to the total physical product when an additional…

Q: What is the difference between implicit and explicit costs? Why do economists include both implicit…

A: Each firm in any industry is driven by profit motive. The goal of a firm is to maximize its sales…

Q: What is sunk cost? Provide an example of a sunk cost. Why are such costs irrelevant in making…

A: Costs refer to the expenses which are made by the firms in the production of goods, and services.…

Q: Why is having a business objective of increased economies of scale always desirable?

A: Economies of Scale in the Business World When it comes to economies of scale, the size of the…

Q: On which factors does total cost for heating or air conditioning a building depends?

A: The sum of all the costs of producing a certain level of output incurred by a company is known as…

Q: On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points…

A: The overall cost paid by a firm to create a given amount of a product or provide a service is…

Q: What equation shows the relationship of MC to AVC when AVC is rising?

A: Marginal Cost It refers to the change in the total cost due to one unit change in output. Variable…

Q: 9. The MC curve cuts the AVC and ATC curves at A. O The falling part of each B. O Different points…

A: Business can be of various types. For example in diesel business, there is diesel production and…

Q: what is your takeaway on this article please?…

A: The total cost consist of fixed cost and variable cost. The fixed cost is the cost of fixed factor…

Q: What stage of production is efficient region of production in short run?

A: There are three stage of production. The law of variable proportion can be divided into three…

Q: Marginal cost is ?

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

Q: How is the optimum point of production for a firm determined?

A: Point of optimum production is that in which the plant is operated at its full capacity. When the…

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: Why should sunk costs be ignored for decision making? Give an example of why it makes sense to…

A: Sunk cost are those cost which have been caused and the sum spent can not be recovered.since the…

Q: What is economies of scale? What are differences between internal and external economies of scale?

A: Economies of Scale: When a company expands its production then usually the cost per unit falls.…

Q: If production increases, what happens to average fixed cost (AFC), does it increase only, decrease…

A: The average fixed cost (AFC) decrease only if the production increases.

Q: Which average cost curves are U-shaped?

A:

Q: fixed cost (AFC) curve?

A: Average fixed cost (AFC) is the per unit total fixed cost of production.

Q: How does the hypothesis of diminishing returns (MP& AP) influence the behaviour of costs (MC& AC)?

A: Costs refers to the amount of money needed to produce goods and services by a firm. These costs may…

Q: 30. If MC = AVC, then: a AVC is at its low point. b. MC is at its low point. c. AVC is rising. d.…

A: The profit maximizing point of a firm occurs at the point where Marginal revenue (MR) equals to…

Q: What is the economies of scale of General Motors?

A: The advantages of cost which is being obtained by the enterprises being solely due to their scale of…

Q: What is sunk cost? Provide an example of a sunk cost.Why are such costs irrelevant in making…

A: A sunk cost is the cost that is already paid and is non-recoverable.  An example is the fixed costs…

Q: What is relationship between total revenue (TR) and total variable cost (VC) if the price is between…

A: Total revenue refers to the revenue of a firm through its total sale of goods. The cost incurred in…

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Incremental cost of production is the increase in total cost due to increase in the production…

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 are the advantages and disadvantages of Cost benefits?

A: Cost-benefit analysis refers to the system under which the business can try to estimate the profits…

Q: If production increases, what happens to average total cost (ATC), does it increase only, decrease…

A: