When marginal product increases, marginal cost increases. True False

Q: of scale. As Big Jake Lumber expands, the cost of shipping the lumber drops sharply. This is an…

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Q: Explain in words why the Law of Diminishing Marginal Returns implies that there are increasing…

A: Law of diminishing marginal returns states that, as the production is continuous using factor of…

Q: How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when…

A: Fixed costs are the costs that do not change with the change in quantity while variable costs are…

Q: A firm encountering economies of scale over some range of output will have a a. rising, then…

A: Microeconomics is a part studied under economics that is used to understand the demand and supply…

Q: The marginal-cost (MC) curve and the average-variable-cost (AVC) curve are same images of the…

A: MC is the cost which is associated with the MP and the cost which is associated with the AP is the…

Q: As output increases, total cost total fixed cost and total variable cost O. increases; does not…

A: The total cost incurred by a firm includes fixed cost and variable cost. Fixed costs do not change…

Q: True or False. Please explain The production function f(x1,x2,x3) = (min{0.5x1;0.75x2 })0.5 ·x30.5…

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Q: Consider this statement “Total output starts falling when diminishing returns occur.” Do you agree…

A: According to the law of diminishing returns as more units of a variable input are used with a fixed…

Q: If marginal cost is less than average variable cost and output increases, average total cost and…

A: The marginal (MC) cost is the extra cost incurred due to the production of an additional unit of…

Q: When average product increases, which short-run cost variable also changes? The output range over…

A: Marginal cost refers to the change in total cost with respect to change in output. Average total…

Q: DEFINE AND EXPLAIN PRODUCTION IN SHORT RUN

A: In the production process, different inputs are used to produce the final output. Each input has its…

Q: Why does as output increases, average variable cost initially declines and eventually begins to…

A: In an economy, the cost is analyzed in different ways, such as total cost, marginal cost, average…

Q: true or false When marginal product is zero, profit is at its maximum level.

A: Marginal Product is the change in the total product when the input employed changes by 1 unit. So if…

Q: true or false: suppose a company has short term production function is 1 1 y = xx .3 so, total…

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Q: what is meant by the term Cost of production? Distinguish between fixed and variable cost. Why short…

A: One of the important motives for the firms operating in a market is profit. Profit is the difference…

Q: Fixed costs decrease per unit of output as volume decreases. True O False

A: Fixed Cost is that cost which are not changed as output changed, that means if output increases or…

Q: In long run production, which of the following does NOT fluctuate? OA All costs can fluctuate in…

A: Money has been evolved since the ages and everyone uses money for number of purposes. There are…

Q: True or false. The U shape of the long-run ATC curve is the result of diminishing returns.

A: Average total cost:The term average total cost refers to the amount or magnitude that comes after…

Q: e graph below illustrates a series of short-run average cost curves, numbered AC1 through AC5, which…

A: Economies of scale occurs when long run average cost falls as more output is produced. Long run…

Q: Average total costs are falling Average total costs are rising Average total costs are minimized O…

A: Average total cost is alluded to as the aggregate of all creation costs partitioned by the total…

Q: A firm has economies of scale, it must have increasing returns to scale. Explain?

A: Economies of scale are cost advantages experienced by firms when production becomes efficient.…

Q: D. The marginal cost curve is always increasing due to the law of diminishing marginal returns. E.…

A: Statement D is true.

Q: Marginal analysis (a.k.a. thinking at the margin) Multiple selects     assumes dimishing marginal…

A: Marginal analysis is the process of comparing additional benefits accrued to the additional costs…

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

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Q: Explain the relationship between total product, marginal product, and average product and how does…

A: Total ProductIn simple terms, we will define Total Product because the total volume or amount of…

Q: Frank pays 50,000/year in fixed costs. If his shop sells Q cups of tea in a year, the other costs…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: What is the difference between economic profit and accounting profit? What is a normal rate of…

A: As per honor code, we’ll answer only one question at a time , we have answered the first question…

Q: Economics students often confuse (a) diminishing returns related to the variable factors of…

A: The return to scale and economies of scale are two different concepts.  The law of diminishing…

Q: Others things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of…

A: Others things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of…

Q: Identify the explicit costs incurred by this business. Why are they explicit costs?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: For a restaurant that sells hamburgers, which of the following costs would be a variable cost? O The…

A: Variable cost is those cost which is not fixed in nature. These costs change in proportion to…

Q: when marginal cost is less than average total cost is falling true False

A: Answer (21). True, Explanation: When the marginal cost is less than the average total cost, the…

Q: Which costs are measured on per-unit basis: fixed costs,averagecost,average variable cost,variable…

A: Cost(C) is an important component of production. The ‘cost of production’ refers to the total…

Q: What is the term for the change in total cost resulting from a one-unit increase in production?…

A: please find the answer below.

Q: Cost to be incurred even in the absence of production is reflected on Variable Input. O True O False

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Quantity Average Fixed cost Fixed Cost Total Total Average Variable Total Cost Average Total cost…

A: A company must bear two forms of costs while production, variable costs and stuck costs. Variable…

Q: A firm experiemces A) diseconomies of scale, average total cost curve slopes downward B) economies…

A: C)diminishing marginal Returns; average total cost curve shift upward

Q: A firm hires two workers and rents 15 acres of land for a season.It produces 150000 bushels of…

A: Here, it is given that, Initial production: 150000 bushels of crop Final production after doubling…

Q: Consider the statement: “Total output starts falling when diminishing returns occur”. Do you agree…

A: "Total output starts falling when diminishing returns occur." It is a disagreeable statement as…

Q: Marginal variable costs and marginal total costs are the same. True False

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

Q: As output increases, marginal costs willeventually incrense a average total cost increases O…

A: As there is an increase in the level of output, there comes a rise in the level of marginal cost…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: Answer to the question is as follows: