Which of the following does not change with the level of output?O Total fixed costO Margiņal costO Total variable costO Average fixed costఆత

Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…

Answered: Which of the following does not change…

Which of the following does not change with the level of output? O Total fixed cost O Marginal cost O Total variable cost O Average fixed cost

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.9P

See similar textbooks

Related questions

Q: As output increases, total fixed cost A. increases; decreases B. does not change; decreases C.…

A: total cost is the cost which is incurred by producer for production by using all fixe and variable…

Q: Which of the following statements is false? O a. Fixed costs exist in the short run, but not in the…

A: The total cost of production (TC) is the lowest cost of producing a certain quantity of output. This…

Q: How and why does a firm’s average-total-cost curvein the short run differ from its…

A: Total cost (TC) equals the total fixed and variable costs. An average total cost function is the…

Q: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…

A: Marginal cost (MC) is that the cost of manufacturing an additional unit of output.Average variable…

Q: Aaron hires students to do housecleaning at $400 a week. He leases equipment that costs $400 a week.…

A: The markets are the places where the sellers, and the buyers operate with each other. In the…

Q: As the quantity produced increases, then a. variable cost always decreases b. average fixed cost…

A: Total cost is defined as the sum of all exposed being incurred by the producer in order to producer…

Q: P in the remaining cells of the table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost…

A: The formula for computing the average and marginal cost of production: 1) Margina cost, MC =…

Q: What is the meaning of minimum efficient scale? a. The minimum plant size where constant returns to…

A: Minimum efficient scale refers to the smallest output that a firm is able to produce when long run…

Q: A D Quantity (units per day Curve C represents which type of cost curve? O A. marginal cost (MC) B.…

A: Average total cost is the sum of average Fixed cost and average variable cost. Average Fixed cost…

Q: The formula for total fixed cost is Select one O A TFC TVC-TC O B. TFC-TC/TVC C TFC=TC-TVC. O D…

A: Total Fixed cost (TFC) is the cost that is incurred on fixed factors and does not change with the…

Q: Which of the following does not change with the level of output? O Marginal cost O Total fixed cost…

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

Q: 12. In the figure below, the vertical difference between curves Fand G measures Costs per unit TC…

A: If we look at the vertical distance between F and G you will see that initially there is a higher…

Q: Suppose Joann knows the average total cost of producing 9 gallons of ethanol is $5, while the…

Q: Which of the following does not change with the level of output? O Total variable cost O Total fixed…

A: There is an inverse relationship between output and average fixed cost. When an increase in output…

Q: The formula for total fixed cost is Select one OA. TFC TVC-TC B. TFC TC/TVC C. TFC-TC-TVC. O D…

A: The term total cost represents sum of all costs incurred by a firm in the production process. It…

Q: a. (A-Marginal Cost, B-Average Variable Cost, C-Average Total Cost) O b. (A-Average Total Cost,…

A: Total fixed cost divided by output gives the average fixed cost. Average variable cost equals total…

Q: Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the…

A: Complete the table using the following formula. AVC = VC/Q ATC = TC/Q MC = change in TC / change in…

Q: The set of lines below reflect information about the cost structure of a firm. Use the figure to…

A: The total cast is defined as the expenses being incurred by the producer in order to produce goods

Q: Consider a graph drawn with the average total cost curve and average variable cost curve. The…

A: Average total cost is the combination of average fixed cost plus average variable cost. So, the…

Q: Which of the following is not a variable cost at the sandwich shop? O Cost of labor

A: We have to find which is not a variable cost at the sandwich shop.

Q: Marginal cost is equal to the change in average variable cost divided by the change in total output…

A: Total cost is the sum of fixed cost and variable cost. Variable cost increases with increase in…

Q: Given the quantity produced (Q), Total fixed cost (TFC) and Total Cost (TC), (1) calculate Total…

A: Total cost is the total expenditure of the producer in the production process. The cost includes the…

Q: What is the diference between total cost and vaiable cost in the long nun? In the long run A. the…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The shape of the Total Product curve on the production side gives us the shape of which curve on the…

A: Total product curve represents the total output of a firm in the short run.

Q: Draw the marginal-cost and average-total-cost curvesfor a typical firm. Explain why the curves have…

A: Average-Total-Cost (ATC): Average total cost refers is cost of production of per unit output that is…

Q: Each graph below illustrates three short run cost curves for firms, where ATC is Average Total Cost…

A: Marginal Cost is the additional cost received by selling one more unit of output. MC is the…

Q: hat is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why…

A: Marginal product refers to an addition to the total production by producing an extra unit of output.…

Q: Which of the following is correct with respect to economic profit? PLEASE EXPLAIN THANKS! A.…

A: The main objective of any firm is profit maximization and a firm maximizes its profit by producing…

Q: Complete the following table, assumingthat each unit of labor costs $75 per day.…

A: Total cost is the sum of fixed cost and the variable cost. Fixed cost is fixed and does not vary…

Q: which of the following statements is true? O since fixed costs are constant as output changes in the…

A: The statement that since total fixed costs are constant as output changes in the short run, it…

Q: Marginal cost is calculated as اختر أحد الخيارات .a. the increase in total cost divided by the…

A: Answer: Correct option: (b) Explanation: Marginal cost: it refers to the cost of producing an…

Q: In the graph below, which depicts the relationship between units produced and total cost, the dotted…

A: The measure that depicts expenses being incurred by a business for carrying out its day to day…

Q: Suppose Jackie runs an apple farm. Jackie has one fixed factor of production. Suppose that Jackie's…

A: In a typical short-run average cost curve, the shape is U-shaped with the minimum value of the cost…

Q: Cost LRAC B A Quantity Figure 1 Long run average cost curve for a firm Figure 1 shows a long run…

A: In economics, when the firm expands or grows then there exists a change in its cost too. When the…

Q: Use the following statements to answer this question: 1. The long-run average cost (LAC) curve is…

A: Long run average shows the relationship between Average total cost and output in the long run. In…

Q: The following is a table of cost for a toy manufacturing firm. The variable input is labor. Use this…

A: We are going to find the average variable cost to identify the value of B.

Q: In a short-run production process for computer software, the average total cost (ATC) is increasing…

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

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Short run costs are those cost in which only one factor is variable and other factors are fixed.…

Q: Refer to the table below. The table shows Long-Run Total Costs Quantity 1 2 4 6 7 Firm 1 $180 $280…

Q: The peak of the Total Product curve relates that a. Maximum output of production b. Maximum…

A: "Marginal product indicates additional output produced when one more unit of variable input is…

Q: In the above figure, curve A is the curve and curve Cis the _ curve. O A. total cost; total variable…

A: Total cost is the overall cost incurred in production, it is the sum of total fixed cost and total…

Q: An economic consultant is presented with the following total product table and askedto derive a…

A: Labor TP MP TC MC AC AP 1 5 10 2 5 2 15 10 20 1 1.33 7.5 3 30 15 30 0.667 1 10 4 36…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Ike's bikers is a major manufacturer of bicycles. It currently produces bikes in one factory, and…

Q: The figure shows the cost curves for Phil's Phone Repair, a cell phone repair firm. When output…

A: Answer is given Below

Q: 5. At its minimum point, the average total cost curve is intersected by the average variable cost…

A: 5) ATC or average total cost is the sum of average variable cost and average fixed cost. The fixed…

Q: Complete the third column of the following table by calculating the marginal cost per dozen pizzas…

A: A change in the total cost of producing various quantities of a product is divided by a change in…

Q: Jane’s Juice Bar has the following cost schedules:a. Calculate average variable cost, average total…

A: The fixed cost is the cost that is associated with the fixed factors of production (factors that…

Q: ll in the remaining cells of the following table. Quantity (Pairs) Total Cost Marginal Cost Fixed…

A: Average total cost (ATC) is determined by dividing total cost by total quantity. Average…

Q: a) Complete the following table by filling in the fixed cost (FC), variable cost (VC), total cost…

A: Total Cost (TC) = Fixed cost (FC) + Variable cost (VC) or Variable cost (VC) = Total Cost (TC) -…

Question

Which of the following does not change with the level of output?
O Total fixed cost
O Margiņal cost
O Total variable cost
O Average fixed cost
ఆత

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

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?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
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.
How does fixed cost affect marginal cost? Why is this relationship important?
Would you consider an interest payment on a loan to a film an explicit or implicit cost?