How does fixed cost affect marginal cost? Why is this relationship important?

Q: Distinguish among accounting profit, economic profit, and normal profit. Does accounting profit or…

A: The difference between the revenue earned from the sale of a product and the total cost of…

Q: 2). Discuss the relationship between the law of eventually diminishing marginal returns and the…

A: The law of diminishing marginal returns states that adding an additional factor of production…

Q: Q: Theoretically and graphically explain how firm choose optimum combination of inputs in short run…

A: Answer: Assumptions:  Two inputs, Labor (L) and Capital (K) Price of labor, wage rate (W) Price of…

Q: Say that neither labor nor machines are fixed but there is a 50 percent quick-order premium paid for…

A: Explicit costs and revenues are those financial transactions that are directly related to a decision…

Q: (Cups of tea per hour) Total Cost in Rs. 0 30 1 33 2 38 3 45 4 54 5 65 6 78 7 93 8…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

A: Marginal cost is the cost which occurs due to the production of one more unit of output is called…

Q: Fig 2.1 illustrates the law of diminishing returns in seeking the optimum system (or component)…

A: The Law of Diminishing returns refers to the marginal return states that adding an additional factor…

Q: Workers Output Marginal product Total costs ATC MC 1 20 2 50 90 120 5 140 6. 150 7 155 1. Fill in…

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

Q: What is Cost Analysis?

A: The correct answer is given in the second step.

Q: Refer to Figure: The vertical distance ABis Select one: A. total cost. B. marginal cost. C. total…

A: Curve 1 is the Marginal Cost(MC) Curve Curve 2 is the Average Variable Cost(AVC) Curve Curve 3 is…

Q: 6)ABC company is using labor and capital to build widgets The last employee produced 20 more widgets…

A: 6. The marginal product of labour = 20     The price of labour = $10     The marginal product of…

Q: Fill in the blank and explain the choice of correct answer. When the marginal…

A: The markets are the place where the buyers of various goods and services and the sellers, or the…

Q: 5. Jane’s Juice Bar has the following cost schedules: Quantity 0 vats of juice 1 2 3 4 5 6 Variable…

A: In economics, average variable cost is a firm's variable costs divided by the quantity of output…

Q: Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit…

A:

Q: 9) A chocolate company makes truffles using labor and capital. The company pays the workers $12 per…

A: The problem of reducing costs is, in mathematics, a problem. In limited optimization. The firm wants…

Q: . Jane’s Juice Bar has the following cost schedules:Quantity Variable Cost Total Cost0 vats of juice…

A: Total cost is classified into two parts, variable cost and fixed cost. In the short run fixed cost…

Q: Explain why understanding the cost curves and various types of costs is important for businesses…

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

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: 38. Graphically, where is average fixed cost (AFC)? It is below price but above average variable…

A: "Cost refers to the value of money that is spent on production or other economic activities." "Fixed…

Q: Define total cost, average total cost, and marginal cost. How are they related?

A: Production prices ar the expenses incurred by a firm once it manufactures a product or provides a…

Q: Why does the marginal cost of production typically increase as the amount of output produced…

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

Q: Poornima is a hard-working college junior. One Saturday, she answered 100 practice problems for her…

A: Poomima is a hard-working junior college .one Saturday ,she decides to work nonstop until she has…

Q: 6. The relationship between marginal physical product and margınal cost Hubert's Big Burger is a…

A: Marginal product is the additional output that is generated when one more unit of the variable input…

Q: "When the total cost of production decrease, we can say that the firm faces positive return to…

A: The firm would result in the production of the various goods and services which would involve the…

Q: Which graph correctly represents the relationship between all three cost curves? O Cost MC Cost АТС…

A: The relationship between curves: The MC curve cuts the ATC and AVC at the minimum and ATC>AVC.

Q: Expalin the law of diminishing returns or diseconomies of scales ?

A: In an economy, the law of diminishing returns and diseconomies of scale are two different concepts,…

Q: C(x) = Use your function to answer the following questions. (a) What is the cost of renting two…

A: Total cost is the cost that includes variable as well as a fixed cost of the production process.

Q: 2. The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the…

A: Marginal Cost(MC) curve is the change in the total cost(TC) due to one unit change in the output(Q).…

Q: Total cost Labor (workers)| Output (frijoles) (dollars) 1,000 1,000 3,000 10 3,000 5,000 15 4,000…

A:

Q: This chapter discusses many types of costs: explicit costs, implicit costs, total cost, average…

A: The questions given are based on different types of cost and are quite self explanatory.

Q: There are 15 dozen eggs in a case. The case costs $ 22.56. What doe one egg cost?

A: A dozen consists of 12 units, so we first calculate total number of eggs 15 dozens=15×12=180

Q: 4. What is the significance of the point where the marginal cost curve intersects the average total…

A:

Q: 3. Jane's Juice Bar has the following cost schedules: Variable Cost $0 Total Cost Quantity 0 vats of…

A: Given,

Q: a. What is optimization? How does it blow up the myth about profit being a result of a mere…

A: In order to achieve the “best” design that is being relative to a set of constraints or criteria…

Q: a. Compute the average cost and marginal cost. Units of output Total Cost Average Cost Marginal Cost…

A:

Q: 9. Cost-curve shifters The following graph shows the average total cost (ATC) curve, average…

A: Given the price of pizza including sales tax = $5 The price of pizza excluding sales tax = $4

Q: Quantity Total Cost Marginal Cost Using Total Cost (Dollars) Variable Cost Marginal Cost Using…

A: The firm produces the goods and services with the inputs of production using labor and capital. The…

Q: statements is true or false and explain If marginal cost is larger than average cost, average cost…

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

Q: People will consistently sit through terrible movies at the theater instead of leaving early. This…

A: The foundation of economics as a discipline is the notion that resources used by economies have a…

Q: Marginal Cost Curve is shaped like a Nike swoosh. graph. 5.The Marginal Cost Curve crosses the…

A: Here, MC marginal cost  ATC average total cost AVC average variable cost  AFC average fixed cost…

Q: 3. Jane's Juice Bar has the following cost schedules: Quantity 0 vats of juice Variable Cost Total…

A: Answer: (a). The following formulas will be used: Average variable cost (AVC)=Total variable…

Q: Which of the following is the best example of a transactions cost? O the price of labor and…

A: Cost is the expenditure of producing goods and services. It is the sum total of the total fixed cost…

Q: ting profit is zero. B. Economic profit is positive. C. Accounting profit is positive. D. Total…

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

Q: How does fixed cost affect marginal cost? Why is this relationship important?

A: Total fixed cost and total variable cost are the part of total cost. Total cost = Total fixed Cost +…

Q: What is the opportunity cost of Wang's $100,000 inheritance being used to start his business?…

A: The opportunity cost of an action is measured in terms of the value of the second-best alternative…

Q: 16. Consider the production process undertaken by a firm. How are the short run and the long run…

A: Short-run and long-run. Long Run: It is the time period in which all the factors of production are…

Q: What is the term for what you give up to obtain an item?   Question 4 options:   opportunity cost…

A: Implicit Cost:- The expenditure which have already incurred which isn't shown or acknowledged as a…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.