Which of the following are true? (check all that apply) a.the average fixed cost is increasing if there are economies of scale occuring b.if the marginal cost is less than the average cost, the average cost is negatively sloped c. Average fixed costs never increase with output d. average total costs are always greater than or equal to average variable costs

Which of the following are true? (check all that apply) a.the average fixed cost is increasing if there are economies of scale occuring b.if the marginal cost is less than the average cost, the average cost is negatively sloped c. Average fixed costs never increase with output d. average total costs are always greater than or equal to average variable costs

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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17. Refer to Figure 1. Curve 2 is Outdoor Equipment's Select one: a. Average total cost curve. b. Marginal cost curve. c. Average fixed cost curve. d. Average variable cost curve.
10 . If marginal product is less than average product, then average product is : A. decreasing b - fixed C- None of the above d - growing
4. Refer to Figure 1. Curve 3 is Outdoor Equipment's Select one: a. Average variable cost curve. b. Average total cost curve. c. Average fixed cost curve. d. Marginal cost curve.
4. Problems and Applications Q4 Ball Bearings, Inc., faces costs of production as follows: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 100 0 1 100 50 2 100 70 3 100 90 4 100 140 5 100 200 6 100 360 Complete the following table by calculating the company's total cost, marginal cost, average fixed cost, average variable cost, and average total cost at each level of production. Quantity Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 0 1 2 3 4 5 6 The price of a case of ball bearings is $50. Seeing that he can't make a profit, the company's chief executive officer (CEO) decides to shut down operations. The firm's…
22. Which one of these will continuously increase as more products are produced? a. None of the choices b. Variable cost c. Average fixed cost d. Fixed cost
1.Joe quits his computer programming job, where he was earning a salary of $50,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $24,000 per year. In his first year of business he has the following expenses: salary paid to himself, $40,000; rent, $0; other expenses, $25,000. Find the accounting cost and the economic cost associated with Joe’s computer software business.
1. Explain the difference between explicit costs and implicit costs. 2. Explain the difference between economic profit and accounting profit. 3. What are the 2 variables that the Production Function is analyzing/graphing? Why does the production function diminish over time? 4. Give an example of a fixed cost and a variable cost. 5. How does fixed costs and variable cost change with increased production? 6. Why does Marginal Cost rise? 7. Why is the Average Total Cost curve U shaped? 8. Why is the Minimum Average Total Cost and Efficient Scale important? 9. What is the relationship between Marginal Cost and Average Total Cost? 10. Explain why economies of scale is important.
(6) If marginal product is greater than average product (a) total product must be increasing. (b) marginal product must be decreasing. (c) marginal product must be increasing. (d) average product may be increasing or decreasing.