Q: Over-production results in
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A: The given situation can be presented as:-
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A: ANSWER IS GIVEN BELOW
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Q: In the given diagram, BDE represents the average variable cost and BCDF represents the marginal cost…
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Q: . When price increases __________________ increases. 2.When price increases…
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A: average of some cost is determined by total dividing total no. of quantity.
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A: In a competitive market marginal revenue is equal to marginal cost at equilibrium.
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- Which of the following is an implicit cost to a firm that produces a good or service? A. Labor costsB. Costs of operating production machineryC. Foregone profits of producing a different good or serviceD. Costs of renting or buying land for a production siteWhen you calculate marginal costs, they should include: SELECT THE CORRECT ANSWER A.the market price of the product. B.only variable costs. C.both the variable and fixed costs. D.only fixed costs.In the ice cream industry, in the short run, what cost includes the cost of cream and sugar, but not the cost of the factory. Choose all answers that are correct. a.Marginal cost b.Variable cost c.Fixed cost d.Average total cost
- Productive efficiency means output (production) is produced in the long run atIn the short run marginal cost crosses average total cost at the minimum of average total cost True or False?Reference to the table provided. What is the average variable cost of producing three units of the good? Output Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 1 — — — — — — — 2 — — $680 — — — — 3 — — — — ????? — $100 4 — — — — — — — 5 $300 — — — — — —
- Total cost of the firm rely fully on the total fixed cost of the firm. True/FalseThe cost function of producing Q units of good: C(Q) = 4Q2 + 16Q + 40 Write down the average cost and marginal cost. Find the value of Q whichminimizes average cost? (Show necessary and sufficient conditons)X and Y are factors of production. X's marginal product is 30 and Y's marginal product is 20. X=5 dollars for each unit, Y= 4 dollars for each unit. Since Y costs less than X, can the firm keep produce the same output at a cheaper cost by using less of X and more of Y? Explain why or why not.
- ABC company's total cost when it produces 20 units is $100. ABC's total cost is $120 when it produces 22 units. What is ABC's marginal cost of producing the 22nd unit?Given the quantity produced (Q), Total fixed cost (TFC) and Total Cost (TC), (1) calculate Total Variable cost (TVC) and (2) Draw Total cost (TC) curve.Suppose consumers see coffee as an undifferentiated good and that there are hundreds of coffee shops in the market. The market price of a cup of coffee is $3. Carly’s coffee shop has a daily short-run total cost given by ?? = 5 + 1 4 ? 2 . The associated marginal cost curve is ?? = 1 2 ?. How many cups of coffee should Carly make a day if she wants to maximize profits?