If average cost is increasing over a range , it should be the case that a) marginal cost is smaller than average cost over that range b) marginal cost is equal to average cost over that range c) marginal cost intersects the average cost over that range d) marginal cost is greater than the average cost

If average cost is increasing over a range , it should be the case that a) marginal cost is smaller than average cost over that range b) marginal cost is equal to average cost over that range c) marginal cost intersects the average cost over that range d) marginal cost is greater than the average cost

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4CQQ

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26. The cost that vary accordingly to the volume of output is _____________. a. Fixed cost b. Both fixed and variable costs c. All the options d. Variable cost
1. Marginal cost is calculated for a particular increase in output by A) multiplying the change in total cost by the change in output. B) multiplying the total cost by the change in output. C) dividing the total cost by the change in output. D) dividing the change in total cost by the change in output.
Fig 2.1 illustrates the law of diminishing returns in seeking the optimum system (or component) performance and hence the need to balance the performance against the cost. Give examples of two pairs of characteristics other than performance versus cost where optimizing one frequently competes with the other, and briefly explain why they do.
Question 1 Alice must determine which of the following statements is false. It is: Total cost equals fixed cost plus average cost. Marginal cost is the increase in total cost resulting from a one-unit increase in output. Marginal cost depends on the amount of labour hired. Average total cost is total cost per unit of output. Average fixed cost plus average variable cost equals average total cost.
11- Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to increase their supply of halwa for the coming month of August 2021. However, due to COVID-19 Pandemic, the only available resources they could change are the number of their workers. Determine which type of production period Al Shaihani business is facing? a. Long run b. All of these c. Short - run d. Mid-run
2. As a general rule, when accountants calculate profit they account for explicit costs but usually ignorea. certain outlays of money by the firm.b. implicit costs.c. operating costs.d. fixed costs.
1. True or False: explain why your answer is true or false a. We can expect the average cost curve of a software product downloadable in the internet to have no minimum point. b. Decreasing returns to scale implies that production exhibits economies of scale. c. Fixed costs tend to infinity when output is zero d. While the distance between the total and variable cost curves does not change, the distance between the average total cost and the average variable cost curves decreases with increasing output. e. In general, production can display diminishing returns in all variables but still display increasing returns to scale. Explain your answer.
22. Which one of these will continuously increase as more products are produced? a. None of the choices b. Variable cost c. Average fixed cost d. Fixed cost
(a) The marginal cost of producing the fourth unit of output is (b) The total variable cost of producing five units of output is
q4- Total cost increases from $500 to $600 when output increases from 20 to 30 units. Fixed costs are $200. Which of the following is true? Select one: a. The production cost per unit is increasing b. Average fixed costs rise c. Marginal cost is equal to fixed cost d. Average total cost falls
(8)A production function: (a) Shows the cost of producing any level of output. (b) Is a technological relationship between factors of production and output. (c) Expresses the least-cost method of producing a given level of output. (d) Expresses our ability to produce various combinations of goods, using all of our resources.
Question 5 The measure of the cost of a particular good in terms of what is given up to produce that good is called an explicit cost. an opportunity cost. a necessary cost. a dollar cost. a fixed cost.