Draw the marginal-cost and average-total-cost curves for a typical firm. Explain why the curves have the shapes that they do and why they cross where they do

Q: In the short-run, if the marginal cost of a firm in a competitive industry is upward sloping while…

A: The short-run is the time period where at least one variable is fixed and others are variable. In…

Q: Calculate average variable costs, average total cost, and marginal cost for each quantity. Please…

A: The firm produces various goods and services. The firm would result in the producing the goods and…

Q: When do firms decide to shut down production in the short run? Explain it.

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

Q: In the long run, fixed costs are

A: Total Cost: The total cost of a commodity refers to the sum of fixed costs (FC) and variable cost…

Q: This is a graph of our firm’s costs. Label the lines on the graph using the following labels:…

A: The Average fixed cost is constantly declining. The average variable cost curve is lower than the…

Q: In the figure below, the firm's initial average total cost curve is SRAC with an initial marginal…

A: A firm in competitive market produces output at Price equals marginal cost.

Q: Give the area that represents the following Total Cost Total Variable Cost Total Fixed Cost Total…

A: Total cost is the total expenditure incurred to produce goods and services during a specific period…

Q: Explain how the Average Total Cost curve is derived for a competitive firm in the long-run. Also,…

A: In the long run the firms do not have any fixed cost as none of the factor inputs are considered as…

Q: The table shows a firm's total and marginal costs. Output Total cost ($) Marginal cost ($) 1 200 20…

A: Marginal cost=Change in Total CostChange in outputAverage Fixed cost=Fixed CostQuantityTotal…

Q: Quantity Total Revenue Total Cost $0 $10 1 $9 $14 2 $18 $19 3 $27 $25 4 $36 $32 $45 $40 $54 $49 7…

A: Marginal cost is the addition to the total cost for producing an additional unit of output. Marginal…

Q: The cost function for Acme Laundry is:    TC(q)=10+10q+q^2  so its marginal cost function is:…

A: The cost function measures the minimum cost of manufacturing a given level of output for a few fixed…

Q: Consider the graph below for a firm. At point T, we know that the firm: A.ls a cost minimizer but…

A: Isoquant Curve:- It is a curve showing combination of all the factors and input, used in producing a…

Q: Explain the industry structure with graph and discuss the reasons for economics of scale and…

A:

Q: Use the variable cost information in the following table to caleulate average variable cost and…

A: 1.   Total Cost = Fixed Cost + Variable Cost   Average Total Cost = Total Cost Quantity   Average…

Q: Given the following short run production cost schedule:   Short Run Total Cost Function…

A: Marginal cost is the additional cost incurred on the production of one extra unit of the output. In…

Q: Given the following short run production cost schedule:   Short Run Total Cost Function…

A: Given: To Find: The marginal cost of producing the first 10 units of output

Q: marginal revenue 1. Questions and Problems 6 average variable cost Average total cost is equal to…

A: The total average cost is defined as the aggregate of all costs of production at a given level of…

Q: Explain in your own words why in the short run a firm may continue to produce even at a loss…

A: A firm in the short will continue to produce until price covers it variable cost. Otherwise the firm…

Q: What is fixed cost? How would you calculate Fixed cost in a graph

A: Total Cost has two components in the short run  1)Total Fixed Cost and 2)Total Variable Cost . Each…

Q: Define and explain the following terms associated with long run production Accounting profit…

A: The short-run is the time period where at least one factor of production is fixed and others are…

Q: Imagine that you own your own business, or you are the manager of a company. Please provide an…

A: Sunk cost is a cost that has been paid and cannot be recovered in the future.

Q: What are examples of fixed and variable costs in a fast food restaurant?

A: Total fixed cost (TFC)is defined as those cost which a firm must pay irrespective of its level of…

Q: Complete table b. Calculate the total fixed cost for the firm  c. Is the firm operating in the…

A: The solution is given below

Q: n the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average…

A: Introduction: Short-run is a term that asserts that at least one input is fixed while others are…

Q: Question 1: Shown below are the graphs of the firm's marginal cost, average variable cost, and…

A: Marginal cost graph tells about the additional cost incurred with one additional unit of production.…

Q: Given the quantity produced (Q), Total fixed cost (TFC) and Total Cost (TC), (1) calculate Total…

A: Total Cost (TC) is the sum of Total Variable Cost (TVC) and the Total Fixed Cost (TFC). Therefore,…

Q: Draw the marginal cost and average total cost curves for a typical firm. Explain why the curves have…

A: A bend/curve that graphically represents the connection between the marginal cost caused by a firm…

Q: What is the difference between accounting profit and economic profit? Select one: a. Accounting…

A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: Complete the following table by computing the total cost and average total cost for each quantity…

A: The perfectly competitive market is the market in which there are large number of buyers and sellers…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: Show the effect of diminishing returns on the marginal and average cost curves of a firm in the…

A: diminishing returns is a  financial regulation expressing assuming one contribution to the…

Q: Assume that the cost data in the following table are for a purely competitive producer:

A: In perfect competition, there is a large number of buyers and sellers and sellers are selling…

Q: Georgia quit her old job where she had been earning $50,000 a year to start her own business. She…

A: Explicit cost: It is the actual monetary expenditure made during the operation of a business.…

Q: With the aid of a diagram, explain the relationship between ‘marginal cost’ and ‘average total cost’…

A: The expenditure incurred on the factors of production for the production of the final good is known…

Q: Given the following short run production cost schedule:   Short Run Total Cost Function…

A: The money spent to purchase the factor of production to produce the good is called cost of the…

Q: Calculate Marginal cost when the total cost changes from 15 to 45 and the quantity changes from 10…

A: # Marginal cost measures the change in total cost when the quantity changes.  MC = change in TC /…

Q: What is the term for the rising portion of its marginal cost curve above its average variable cost…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Given the following short run production cost schedule:   Short Run Total Cost Function…

A: Average cost (AC) =Total cost (TC)Quantity(Q)Marginal cost (MC) =TCn-TCn-1

Q: explain why the lower marginal cost firm can never produce the same as the high marginal cost firm

A: marginal cost is the cost of producing additional unit of product . and it helps to the firm to…

Q: The formula for total fixed cost is TFC = TC + TVC. TFC = TVC - TC. TFC = TC/TVC. TFC = TC - TVC.

A: Total cost is the total expenditure incurred on the production of goods or services. It can be…

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: Quantity Total Cost Marginal Cost 0 $   200   1      900   2   $900 3   3,000     a)…

A: a). The fixed coast is the cost which remains the same even when the firm produces nothing. Thus,…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: Marginal cost (MC) is the change in total cost or total variable cost per unit change in output.

Q: Choose the statement that is true. Fixed costs in the long run can become variable in the short run.…

A: Out of the given statements, only the fourth statement is true. The reason for this is explained…