Select choices which are true about Marginal Costs. (Select all that apply.) (change in Total Cost) divided by (change in Quantity) crosses Average Fixed Cost at minimum point of Average Fixed Cost crosses Average Total Cost at minimum point of Average Total Cost always horizontal crosses Average Variable Cost at minimum point of Average Variable Cost Total Cost divided by Quantity

Select choices which are true about Marginal Costs. (Select all that apply.) (change in Total Cost) divided by (change in Quantity) crosses Average Fixed Cost at minimum point of Average Fixed Cost crosses Average Total Cost at minimum point of Average Total Cost always horizontal crosses Average Variable Cost at minimum point of Average Variable Cost Total Cost divided by Quantity

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 5CQQ

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Question-1 The table below shows the short run cost for producing bicycles. Complete all missing values in table below: Marginal cost Average total cost Average variable cost Average fixed cost Total cost Variable cost Fixed cost Output Labor 0 $60 0 0 70$ $60 1 1 $140 $60 6 2 $210 $60 11 3 280$ $60 15 4 $350 $60 13 5 $420 $60 12 6 Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the marginal cost and average total cost intercept? Explain the relationship between the marginal cost and the average total cost with the help of graph.
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
30.Refer to Figure 1. Curve 1 is Outdoor Equipment's Select one: a. Marginal cost curve. b. Average total cost curve. c. Average fixed cost curve. d. Average variable cost curve.
Question 24.24. Variable costs are sunk costs. costs that change every day. costs that change with the level of production. the change in total cost due to the production of an additional unit of output.
Q1. The table below shows the short run cost for producing bicycles. Complete all missing values in table below: Marginal cost Average total cost Average variable cost Average fixed cost Total cost Variable cost Fixed cost Output Labor 0 $60 0 0 70$ $60 1 1 $140 $60 6 2 $210 $60 11 3 280$ $60 15 4 $350 $60 13 5 $420 $60 12 6 Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the marginal cost and average total cost intercept? Explain the relationship between the marginal cost and the average total cost with the help of graph. Question 2 When do firms decide to shut down production in the short run? Explain it. How is the short run average cost curve and the long run average cost curve shaped? What is the difference between them?
11. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost each month for various levels of production if it uses one, two, or three factories. (Note: QQ equals the total quantity of bikes produced by all factories.) Number of Factories Average Total Cost (Dollars per bike) QQ = 100 QQ = 200 QQ = 300 QQ = 400 QQ = 500 QQ = 600 1 140 60 40 80 160 320 2 230 110 40 40 110 230 3 320 160 80 40 60 140 Suppose Ike’s Bikes is currently producing 500 bikes per month in its only factory. Its short-run average total cost is per bike. Suppose Ike’s Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using .…
1. What is the formula to calculate profits? 2. Define Explicit and Implicit Costs. 3. Define Economic Profit and Accounting Profit. 4. Define Production Function, Marginal Product, and Diminishing Marginal Product. 5. Define Fixed Costs and Variable Costs. 5. Provide the formula/calculation for the following costs: Average Total Cost, Average Fixed Cost, Average Variable Cost, Marginal Cost. 6. Define Minimum Average Cost and Efficient Scale. 7. Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.
1 . Costs in the short run versus in the long run Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company’s short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Average Total Cost (Dollars per bike) Number of Factories Q = 200 Q = 300 Q = 400 Q = 500 Q = 600 1 440 280 240 320 480 800 2 620 380 240 240 380 620 3 800 480 320 240 280 440 Suppose Ike’s Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is ? per bike. Suppose Ike’s Bikes is expecting to produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using (one factory, two…