The marginal cost (MC) curve intersects the a)AVC and AFC curves at their minimum points. b) ATC and AFC curves at their minimum points. c) ATC and AVC curves at their minimum points. d)ATC, AVC, and AFC curves at their minimum points.

The marginal cost (MC) curve intersects the a)AVC and AFC curves at their minimum points. b) ATC and AFC curves at their minimum points. c) ATC and AVC curves at their minimum points. d)ATC, AVC, and AFC curves at their minimum points.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 4.10P

See similar textbooks

Related questions

Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…

A: Answer to the question is as follows:

Q: True or false? a. The AFC curve can never rise. b. Diminishing marginal product is a long-run…

A: The AFC stand for Average Fixed Cost curve which refer to that price of a commodity in the economy…

Q: What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b. Returns to…

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: QUESTION 25 The Marginal Cost curve crosses the Average Total Cost curve at its maximum. True False

A: "Marginal cost represents change in total costs when one more unit is produced while average total…

Q: The government imposes a $1,000 per year license fee on all pizza restaurants. As a result, which…

A: License fees are generally considered to be fixed costs. It is the money paid by a person using…

Q: Marginal product will eventually go down because of the law of diminishing marginal utility. the…

A: The marginal product of a factor input is the additional output that is generated when an…

Q: Refer to the graph shown. This set of cost curves Is: MC ATC B AVC Output Multiple Cholce O wrong…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: Can you differentiate which is the best and which is the worst between Constant Cost Condition,…

A: In a perfectly competitive market, the long-run industry supply curve explains the relationship…

Q: ATC is decreasing, is ATC is above (greater), equal, or less (below) than MC? ________ choose one…

Q: Which of the following is true of fixed costs? a. Fixed costs can be changed, but it is…

A: Fixed costs are those that do not change with changes in the output level produced. They are the…

Q: MC ATC Avc AVC B A AFC Quantity Refer to the diagram. At output level Q total variable cost is…

A: Mathematically, the average variable cost is determined by separating the absolute variable cost…

Q: An implicit cost is another name for a(n): Explicit cost Production cost Economic…

A: Option D Implicit cost is a cost to a business that occurs due to the cost of resources that were…

Q: Jim cannot work for a week due to illness. [ Select | [ Select ] explicit cost implicit cost Norman…

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…

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

A: Marginal cost: Minimal expense speaks to the gradual costs brought about while creating extra units…

Q: In the short run marginal cost crosses average total cost at the minimum of average total cost True…

A: According to the given question Simply a Short run period is that period in which the other factors…

Q: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: What is Cost Analysis?

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

Q: When the marginal-cost curve lies: a. above the ATC curve, ATC rises. b. above the AVC curve, ATC…

A: Marginal cost refers to the additional cost that occurs when producing an extra unit of output.…

Q: Minimum average costs occur when: Select an answer and submit. For keyboard navigation, use the…

A: When firms operate in a market, they incur fixed costs and variable costs. Fixed costs do not depend…

Q: Which of the following is a correct statement about the relationship between average cost (AC) and…

A: The relationship between MC and AC can be stated as under: (i) When AC falls with increase in…

Q: . The marginal cost curve intersects the average fixed, average variable, and average total cost…

A: Answer to the question is as follows:

Q: Graphically show the relationship between the Avg. Variable Cost, Avg. Total Cost, and Marginal Cost…

A: Below is the formula: AVC = TVCQATC = TCQMC = TCn - TCn-1

Q: If marginal cost is equal to average total cost then, (a) Average total costs are falling (b)…

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

Q: The vertical distance between a firm's total cost (TC) and variable cost (VC) curves O is equal to…

A: The total cost of any firm includes its fixed costs and its variable costs that occurred during…

Q: A graph represented by a straight line parallel to the output of the X-AXIS is an image of which…

A: The total cost is the sum of total fixed cost and total variable cost of production. The total fixed…

Q: On a diagram, represent graphically the Average Total Cost (ATC). Discuss this shape by fully…

Q: QUESTION 3 Match each of the following terms and descriptions Fixed Cost Total Cost A. fixed cost…

A: Fixed cost is that cost which are not changed as output changed its remains constant. That means if…

Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…

A: Marginal cost is the cost of producing an additional unit. With the increase in production, till a…

Q: Average total cost intersects marginal cost at minimum marginal cost. True False

Q: Explain economies of scale and how to determine if a firm is experiencing it or not from their cost…

A: In a market, economies of scale is considered as one of the competitive advantage of a firm.

Q: Graphs must display The Marginal Cost Curve is shaped like a Nike swoosh. The Marginal Cost Curve…

A: 1. The marginal cost is the cost that is caused to the firm through the increased production of the…

Q: The marginal cost curve intersects the short-run average total cost curve where: A. average…

A: Marginal Cost is the cost incurred for producing an additional unit of output. Marginal Cost =…

Q: Stretch the MC, ATC and AVC curves in a diagram. Explain the reason why MC and ATC curve is shaped…

A: The marginal cost (MC) shows the incremental cost incurred when one additional unit is produced. It…

Q: When plotting marginal and average cost curves, the cost curve always crosses the cost curve at its…

A: Average fixed cost (AFC) refers to per unit fixed cost of production.AFC = TFC / QIt is rectangular…

Q: Opportunity cost refers to A) explicit costs+ implicit costs B) Time costs C) Money costs D) None of…

A: The total amount of money used in producing goods & services and including labor, time and…

Q: If production increases, what happens to average variable cost (AVC), does it increase only,…

Q: The marginal cost curve passes through the minimum point of the average variable cost curve but not…

A: ATC(Average total cost), MC(Marginal cost) and AVC(average variable cost) are U shaped curves. This…

Q: Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale.…

A: According to the question, C(x) = ½ X^2 AV(x) = C(x)/x = ½ x MC(x) = C’(x) =x

Q: If average total cost decreases as output increase, this indictes that there are

A: In the long run, If the average total cost decreases as output increases, this indicates that there…

Q: State whether the following describes MC (marginal cost), ATC (average total cost), AVC (average…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Costs are the expenses that firms incur in the production of goods and services.

Q: MC ATC AVC F AFC A Quantity Refer to the above diagram. At output level Q total variable cost is:…

A: Diagrammatically, total variable cost(TVC) at a certain level of output is given by the area below…

Q: Q.4 Marginal Cost is closely relate (a) Total variable cost (b) Total cost (c) Total fixed cost (d)…

A: # marginal cost measures the change taking place in the value of total cost when the quantity…

Concept explainers

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.

Question

19) The marginal cost (MC) curve intersects the

a)AVC and AFC curves at their minimum points.

b) ATC and AFC curves at their minimum points.

c) ATC and AVC curves at their minimum points.

d)ATC, AVC, and AFC curves at their minimum points.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

2. The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the left of the minimum of AVC. d. cut AVC at the minimum of AVC but cut ATC at a point to the right of the minimum of ATC. b. cut ATC at the minimum of ATC but cut AVC at a point to the right of the minimum of AVC. e. cut both ATC and AVC at their respective minimums c. cut AVC at the minimum of AVC but cut ATC at a point to the left of the minimum of ATC. explain your answer above thoroughly--graphical, algebraically, numerically.
2. The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the left of the minimum of AVC. d. cut AVC at the minimum of AVC but cut ATC at a point to the right of the minimum of ATC. b. cut ATC at the minimum of ATC but cut AVC at a point to the right of the minimum of AVC. e. cut both ATC and AVC at their respective minimums c. cut AVC at the minimum of AVC but cut ATC at a point to the left of the minimum of ATC. Choose and explain your answer above thoroughly--graphical, algebraically, numerically. Please use a graph in your answer, and explain in as much detail as possible.
Whereat for the firm operating at it efficient scale, a. the marginal cost curve intersects at the minimum point of AVC curve. b. the marginal cost curve intersects at the minimum point of ATC curve. c, the marginal cost curve intersects at the minimum point of AFC curve. d. the slope of total cost is the smallest.
Is this graph a valid set of cost curves? True/False
Which of the following statements regarding marginal analysis is true? A. If total cost is falling, marginal cost must be positive. B. If total cost is rising, marginal cost must be rising. C. If total cost is rising, marginal cost could be falling. D. If total cost is falling, marginal cost could be zero.
What is relationship between total revenue (TR) and total variable cost (VC) if the price is equal to the AVC (tangent to the minimum AVC), (is TR greater, less, or equal to VC)? What do we call this point?
The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the average-variable-cost (AVC) curve at their maximum points. Select one: True O False
Graph the curves for total cost, ATC, AVC, AFC, MC. Explain shape of these curves and the relationship between ATC and MC.
Question1: a. Find the first, second and third derivatives of the following total cost function: TC(Q)=Q3 /5−8Q2 + 5/2 Q+180 b. Find the average cost, AC = TC/Q, and its minimum. c. Find the average variable cost, AVC = TVC/Q, and its minimum. d. Show that the marginal cost, MC, curve passes through the minimum of the AC and the AVC curves.
Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale. Find and graph the cost,average cost, and marginal cost functions. Interpret the graphs andexplain the idea of diminishing returns.
36. The marginal cost curve intersects the average fixed, average variable, and average total cost curves all at their minimum points. True False
What is relationship between total revenue (TR) and total variable cost (VC) if the price is less than AVC (is TR greater, less, or equal to VC)?