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

Which of the following are true? (check all that apply) the average fixed cost is increasing if there are economies of scale occuring if the marginal cost is less than the average cost, the average cost is negatively sloped Average fixed costs never increase with output 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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Similar questions

Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
How does fixed cost affect marginal cost? Why is this relationship important?
What is the difference between fixed costs and variable costs?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.