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.

Q: Suppose a shoes factory makes 100 pairs of shoes. At this level of production, they have $25 in…

A: Output(Q)=100 units AVC(Q=100)=$25 ATC(Q=100)=$32 TFC(Q=100)=? We know that: Average Fixed Cost is…

Q: Solve the attachment.

A: The firms incur costs as per their production processes and other requirements to maintain and make…

Q: Suppose an artist produces 6 paintings. If fixed costs are $200 and variable costs are $100, then…

A: There are mainly two type of cost , FIXED COST and VARIABLE COST which is used in production ,…

Q: Marginal cost is the:  rate of change in total fixed cost that results from producing one more unit…

A: Marginal cost by definition is the cost incurred for producing an extra unit of the good or…

Q: The marginal cost curve: is a vertical line. generally rises at first and then declines as output…

A: Marginal cost is the cost of producing additional unit of output. The shape of marginal cost depends…

Q: Costs which increase with an increase in output are called________________ Costs which do not…

A: There are two main components of the total cost(TC) that a firm incurs. One is the variable cost(VC)…

Q: Fixed costs differ from sunk costs in that a firm can avoid fixed costs by not producing anything

A: Avoidable costs are costs that do not occur if the activity is not performed. For example, supply…

Q: Which of the following costs are important to consider when making short run decisions for a firm *…

A: We know that in the short run, there are both fixed and variable costs. Since some factors or input…

Q: Diseconomies of scale occur when:A) average total cost increases as output increases.B) average…

A: The process of production is the combining of the raw materials and the skills and knowledge of the…

Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Economies and diseconomies of scale explain: Group of answer choices the profit-maximizing level of…

A: Economies of scale are the point at which the expense per unit of creation (Average expense)…

Q: marginal revenue 1. Questions and Problems 6 average variable cost Average total cost is equal to…

A: The total average cost is defined as the aggregate of all costs of production at a given level of…

Q: Max​ Shreck, an​ accountant, quit his​ $80,000-a-year job and bought an existing tattoo parlor from…

A: a). MC of operating the tattoo parlor means the additional cost occurring when one more unit of…

Q: Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He…

A: Total cost =total variable cost + total fixed cost

Q: Which of the following would increase a firm's average total costs? economies of scale an increase…

A: Average Total Cost: The average total cost (ATC) is the per-unit cost of producing goods and…

Q: Evaluate the view that the main goal of firms will always be cost minimization.  You are interested…

A: 1) The main goal of the firm is cost minimization. This is because if the firm minimises the cost,…

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 profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…

A: In case of perfect competition there are large number of buyers and sellers. The firms sell…

Q: Fixed costs of production in the short run: a. Are low in proportion to variable costs in the short…

A: The firm can increase production by changing its factor of production. However, the production scale…

Q: ) The short run is a time period in which: (a) all resources are fixed.…

A: In economics, we study the interaction and the decision-making of the economic agents at the…

Q: With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50.…

A: Given:  Total Fixed Cost = 400. Average Total Cost = $3 Average Variable Cost = $2.50

Q: Which of the following results from bureaucratic red tape, breakdown of top-to-bottom communication,…

A: The Diseconomies of scale are the consequence that occurs because of bureaucratic red tape,…

Q: When a firm experiences increasing returns to scale a. its AFC will decrease. b. its AFC will…

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

Q: A producer borrows money and starts a business. He himself looks after the business. Identify…

A: (1.) A producer borrows money and starts a business. He himself looks after the business. Identify…

Q: When a firm is operating at its minimum efficient scale, its: a. marginal revenue is less than the…

A: Minimum efficient scale is defined as the level of output at which all economies of scale are…

Q: A firm’s short-run marginal cost______________________________.   increases with output remain…

A: By definition, marginal cost refers to the additional amount of cost which the firm has to bear for…

Q: After one month of operation, OO Café determined to shorten its business hours and close on…

A: The cost of production is the summation of all the costs incurred while producing a commodity in the…

Q: What of the following is considered "sunk cost" in the short run? Variable cost. (VC, or TVC)…

A: Definition: Sunk Costs: In economics and firm decision-making, a sunk cost is a cost that has…

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: The portion of a long run average cost curve that is downward sloping is called the range of: Group…

A: The long-run average cost curve is the cost curve which helps to analyze the cost function of the…

Q: Jeb owns a small marketing company, which he operates from a home office. Jeb’s home office is an…

A: Fixed Cost remains same at all levels of output. Marginal Cost is the additional cost incurred while…

Q: the effect of fixed costs upon AC as output increases   the law of demand   the law of constant…

A: increasing and decreasing returns to scale

Q: Minimum efficient scale for production of a good or service: Select correct one : a) is the point…

A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…

Q: A producer borrows money and starts a business. He himself looks after the Identify implicit and…

A: Answering first question as per guidelines. Explicit Costs refer to actual payments made for…

Q: In the short run, a perfectly competitive ball bearing manufacturer will continue to produce at a…

A: In perfect competition, there are large number of buyers and sellers and each firm sells identical…

Q: Distinguish between/among The short run total fixed cost, total variable cost and total cost.

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first…

Q: Fixed costs are associated with Multiple Choice   highly adjustable inputs such as labor.   both…

A: Fixed costs are costs that does not change with increase or decrease in production/sales. They are…

Q: Which of the following is correct if the firm described in Figure 7-4 decides to produce nothing?…

A: There are certain fixed costs that the firm has to incur even at 0 production level. Those costs are…

Q: f a firm has negative accounting profits in the short run, it should   Question 10 options:   All…

A: Accounting profit = Total revenue - Explicit cost Economic profit = Total revenue - Explicit cost -…

Q: When all fixed costs become variable costs a firm is considered to be in the

A: In the production process, a business firm develops its output from employing resources ( also…

Q: As the firm's output increases in the short run, the average variable cost will: A) always increase…

A: ‘Total cost(TC)’ is the amount that includes all the expenses that are paid to produce a certain…

Q: Designated cost incurred by the short-run firm. Select one: a. fixed cost b. total cost c. variable…

A: In short run, certain factors of production are fixed and certain factors of production are…

Q: (TC is total cost; VC is variable cost; Q is quantity.) ATC а. b. The amount by which total cost…

A: A -Change in TC dur to change in output is called MARGINAL COST B- AMOUNT by which total cost…

Q: The long run is best defined as a time period )during which prices of other goods change. that is…

A: The short-run (SR) is a time span where the prices of inputs are constant but the prices of output…

Q: Question attahed in image

A: A firm incurs two types of cost, fixed cost and variable cost. A firm’s total fixed cost is a cost…

Q: Total cost of the firm rely fully on the total fixed cost of the firm. True/False

A: Costs are the expenses that a firm incurs in the production of the goods and services. It is…

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…