If a person starts their own business, one implicit cost is the loss of a steady salary from leaving a job. true false The average cost and marginal cost are always the same. true false

Q: Please explain whether the following statements are true or false. Question (a) if the owner of a…

A: The potential benefits that a person, investor, or company loses out on by choosing one option over…

Q: The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC s the…

A: Since you have asked for the solution of B and C only. So, I am answering only B and C.

Q: Are all fixed costs also sunk costs?

A: Sunk Cost: It refers to the cost that is once incurred can’t be recovered.Fixed Cost: It is the cost…

Q: A firm with only fixed costs will have which of the following average cost relationships? As…

A: Average Total Cost is calculated by dividing the total cost with units of output. Average Cost =…

Q: suppose Jack produces chocolate with two inputs : factory and labor.  If the workers become more…

A: Labor productivity has increased. Labor productivity and cost of production (except fixed cost) are…

Q: Q 1. The hiring of labour with fixed factor of production under short run after sometimes leads to…

A: 1) The law of variable proportion states that when total output of a good is increased by adding…

Q: Q.No.6 a. If total cost function is (6) C= C(Q) Show the relationship between marginal cost and…

A: Marginal cost refers to the additional cost of production incurred in the process of increasing…

Q: Which of the following is an example of an implicit cost? Group of answer choices A)Federal taxes…

A: Implicit cost is such a cost that shows factor cost owned by entrepreneur himself and also known as…

Q: When the marginal cost curve lies below the average total cost curve, it is true that as output…

A: Answer to the question is as follows:

Q: Suppose that the cost of all inputs (both labor and capitol) decreases. What will happen to the…

A: In economics, inputs are considered as factors of production. That means, inputs are those factors…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: The diminishing returns occurs in the short run. All factor of production are not variable in the…

Q: In short-run production where labor is a variable input, the relationship between marginal product…

A: We are given, Economy is in short run. Labor is the variable input. Marginal cost of production =…

Q: If output per per person is .25 and the wage rate is 10,what is the average variable cost?

A: Answer: Given, Output per person=OutputL(units of labor)=0.25Wage rate(W)=10 To find, Average…

Q: Since marginal cost is the reciprocal of marginal product times the input price, it decreases as…

A: The marginal cost refers to the additional cost incurred on production of an additional unit of…

Q: The marginal cost curve intersects the minimum point of both the average total cost curve and the…

A: The following are the definitions of the terms asked in the above questions. The marginal cost is…

Q: A lot of companies use the marginal cost function for their business models to determine the…

A: 1. We know, Average cost = AC(x) = C(x)/x  Marginal cost MC(x) = C’(x) At the critical points of…

Q: The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is…

A: Total Cost is the sum of fixed cost and variable cost. TC=FC+VC Fixed cost is that cost which is…

Q: Suppose the production function is Q = 50 (KL)1/2. (Quantity = 50 times the square root of capital…

A: Q = 50 (KL)1/2 Q = 50 K1/2L1/2 In short run, some input factors are fixed and some are…

Q: What is the critical point of the total cost function TC=1/3Q3+6Q2-640Q

A: Critical points are calculated by setting the derivative of a function equal to zero.

Q: Explain the following statement by using a graphical analysis: “Shape of the short-run cost curves…

A: The shape of the short-run total cost (TC) curve is cubic and that of the average cost (AC) curve is…

Q: Economic cost is equal to the sum of the explicit and the implicit costs True False

A: The economics as a study is associated with the use of various resources which are available with…

Q: When the marginal product of adding a worker is a greater loss than the loss of the marginal product…

A: When the marginal product of adding a worker is a greater loss than the loss of the marginal product…

Q: When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Which would be an implicit cost for a firm?  The cost        of worker wages and salaries for the…

A: In economics, there are two types of cost, the one is explicit cost and other is implicit cost.…

Q: Consider the following cost function: C(q) = 100+10q+q² (i) What are the formulas for the Total…

A: Given the information: C(q) = 100 + 10q + q2

Q: Consider a producer with the production function y = min {2L, K} and suppose the input prices are…

A: Given, The production function, Y = min(2L, K), w = 1 r = 2 a) The cost function is given by: C = wL…

Q: explicit or implicit cost

A: The expenditure incurred on producing a good or service depicts the cost. Cost depends the level of…

Q: Provide a diagram that illustrates, for the short-run analysis, the average cost function, the…

A: The firms, and businesses operate with the motive of enhancing their profits, and minimizing their…

Q: If accounting profit is $400,000 greater than economic profit, what do implicit cost equal?

A: We know that: Accounting profit = Total revenue- Total explicit cost Economic profit = Total revenue…

Q: The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC is the…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Suppose the short run production function is q=10*

A: Given the production function, q = 10*L Wage rate = $10

Q: Give few examples of "Sunk Cost" from your real-life experience.

A: Money that was already spent that cannot be recovered is referred to as a sunk cost. The axiom that…

Q: The average fixed cost curve a. always rises with increased levels of output b. declines as long as…

A: The average fixed cost is the per unit fixed cost incurred in the production process as it is…

Q: Explain the theoritical relationship between average variable cost and the marginal cost

A: Average variable cost is the total variable cost per unit of output.  AVC = TVC / No of units…

Q: Suppose that the production of Y uses two inputs, L and K. L can be any positive real number, while…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: the envelope curve be tangential to the bottom of each of the short-run average cost curves? Explain…

A: In Economics, qualification is frequently made between the short-run and long-run. In the short-run…

Q: Average variable cost and average total cost get closer as output increases because a) productivity…

A: ATC = AVC + AFC So, AFC = ATC - AVC (= distance between ATC and AVC curves) Also, AFC = TFC / Q As Q…

Q: Marginal cost equals None of the above are correct. total cost divided by quantity of output…

A: Marginal cost: The cost that is incurred on the production of an additional unit of output is…

Q: A firm with some fixed costs and a constant marginal cost at all levels of production will have…

A: The total cost can be divided into two parts: total fixed cost and total variable cost. Total fixed…

Q: Distinguish between economies of scale and constant returns to scale. What shape will the long-run…

A: Economies of scale – A downward sloping LARC (Long run average cost curve)The constant return to…

Q: an interest payment on a loan to a firm is an explicit or implicit cost?

A: The implicit cost is an indirect cost defined as the opportunity cost of utilizing a firm's…

Q: Marginal variable costs and marginal total costs are the same. True False

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…