How do you derive the marginal cost (MC) curve of a firm? Explain.     Answer question step by step and use graph.

Q: Why the average fixed cost curve does not touch the output axis ? YA AFC Output Cost

A:

Q: The diagram shows the short-run cost curves of a firm. Which statement is CORRECT? costs output

A: OPTION A is correct. Curve 1 is Average Fixed Cost Curve AFC = TFC/Q Since TFC is positive at levels…

Q: marginal cost

A: The marginal cost depicts the additional cost of an extra unit of output produced. As, the level of…

Q: What is the relationship between a firm’s total revenue, profit, and total cost?

A: Total revenue (TR) is the amount earned by the firm by selling its goods. Total Cost (TC) is the…

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: 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: b. Manton Bakery is a company that bakes bread. Here is the relationship between the number of…

A: The additional cost of producing one extra item is reflected in the marginal cost. As a result, it…

Q: 10. The following is a total cost curve. Sketch the corresponding marginal cost curve. If the price…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

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: What are Fixed Costs?

A: A company mainly faces two type of costs known as fixed cost and variable cost. These two costs are…

Q: Use the graph below to answer the following question. 10 8 Long Run Average Total Costs

A: The long run average total cost curve (LRATC) shows the per unit total cost incurred by the firm in…

Q: Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also…

A: The marginal cost curve refers to the curve that shows additional cost of production when the firm…

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: Examine the graph below. The firm is experiencing decreasing returns to scale between points SRATCS…

A: There are three types of return to scale Increasing Return to scale Diminishing return to scale…

Q: Make a sketch of Lin’s short-run cost curves

A: Short-run cost curve represents the cost incurred by the producer by producing each quantity of…

Q: Discuss the relationship between the three short-run total cost curves. Use a diagram to motivate…

A: Short run is the time period in microeconomics wherein some inputs are fixed while other inputs are…

Q: c. When output is 3, average variable cost is $ d. When output is 4, average total cost is $ e. When…

A: Total cost(TC) consists of fixed cost(FC) and variable cost(VC) Fixed cost is the one that doesn't…

Q: A special shoe manufacturer ABC Co. has costs of production as follows :…

A: a. Following below is the schedule for the Average fixed costs (AFC), average variable costs(AVC) ,…

Q: Explain Fixed costs versus variable costs and give an example?

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: Draw a graph and complete a short-run cost table by using the information provided.       (TP)…

A: In the short run, a firm will have two types of cost: fixed cost and variable cost.Total fixed cost…

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: Farmer McDonald gives banjo lessons for $20 an hour. One day, he spends 10 hours planting $100 worth…

A: Accounting profit is the difference between total revenues and explicit costs where explicit costs…

Q: Using the Diagram above, answer the following questions: b). Suppose this firm produces 15 units of…

A: Variable cost is the cost that is closely associated with the production activity. That is, it moves…

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: Fill in the column of marginal products. b. A worker costs $100 a day, and the firm has fixed costs…

A: MPn =TPn - TPn-1 ATC = TC / Q MCn = TCn - TCn-1

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: As a firm increases its output, we expect marginal cost to Increase. Decrease. Remain the same.…

A: Marginal cost is the additional cost incurred to produce an additional unit of output.

Q: What is the relationship between marginal product and marginal cost? Why do you suppose that is? Is…

A: Marginal Product: The term marginal product refers to the increase in total product due to the use…

Q: What is the difference between decreasing returns to scale and diminishing marginal product?

A: Meaning of Law of Variable Proportions: The term law of variable proportions refers to the…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Ike's bikers is a major manufacturer of bicycles.  It currently produces bikes in one factory, and…

Q: How do you derive the marginal cost (MC) curve of a firm? b) How are average variable cost (AVC) and…

A: Marginal cost is the additional cost that is incurred in order to produce an additional unit of an…

Q: Complete the following table: Marginal Output Average Cost Cost

A: There are two type of cost in production 1) Fixed cost - fix in nature…

Q: Use the figure to answer the following question(s). Figure 8-2 $10 ATC AVC 6. 4 10 20 30 40 Quantity…

A: Marginal cost: It is the additional cost of production when one more unit of quantity is produced.…

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: 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: The difference between economic profit and accounting profit is?   Average cost Direct costs…

A: Cost is the expenditure incurred by firms on the production of goods and services. The cost can be…

Q: (c) Long-run average total cost curve is a curve that shows the lowest (Unit) cost at which the firm…

A: When a fixed cost is set to minimize average total cost for each level of production, the long-run…

Q: Marginal cost curve is _______  1) Straight line  2) U shaped

A: Marginal cost refers to the cost associated with generating one more unit of output. It is the cost…

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…