Answered: Which of the following does not change…

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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 18RQ: How do we calculate each of the following: marginal cost, average total cost, and average variable...

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: 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: O greater than average total cost. O greater than average fixed cost. O greater than average…

A: According to economics, average variable cost (AVC) is labour, electricity, etc. divided by the…

Q: Answer the next four questions after completing the cost table below: Quantity TC MC AFC AVC ATC 0 1…

A: The measure that depicts expenses incurred by business for carrying out day to day expenses is known…

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: oth in the short - run and the long - run , average cost curves are U - shaped for different reasons…

A: Average cost is the per unit cost incurred in the production of a commodity. It is obtained by…

Q: Consider the following cost information for a pizzeria: a.What is the pizzeria's fixed cost?…

A: The total cost is the total expenditure incurred to the business during the production process of a…

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: The table gives costs at Ahmad's Bike Shop. Unfortunately, Ahmad's record keeping has been…

A: Labor (workers) Output (bikes) Total fixed cost (dollars0 Total variable cost (dollars) Total cost…

Q: Which type of cost does depend on a firm's output? Select one OA marginal cost O B total cost C…

A: Fixed cost is the cost that is incurred on fixed factors and does not change with the level of…

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: e) In the following diagram of cost curves, how many short runs have been created? State and explain…

A: Average short run curve: It refers to the curve which is a U shaped curve. It decreases the average…

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

A: Total cost refers to the costs that are remaining the same for all level of production. Generally…

Q: average total cost is increasing as output increase, then marginal cost must be average total cost.…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

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

A: We have to find Long run average cost curve.

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: Tabaq sells roasted coffee. The information about their production of coffee is given below: Labor…

A: The marginal physical product of labor can be calculated as follows: Marginal physical product of…

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: Which graph correctly represents the relationship between all three cost curves? O Cost MC Cost АТС…

A: The relationship between curves: The MC curve cuts the ATC and AVC at the minimum and ATC>AVC.

Q: Firm Beta finds that when it triples all of its inputs, output doubles. Firm Beta's production…

A: In a market, firm produces output using the combination of input resources. The change in output…

Q: At the minimum-cost output OA. average variable cost must equal marginal cost. B. average fixed cost…

Q: D D Question 12 When marginal product is diminishing O average variable cost is falling O fixed cost…

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

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

Q: Tiva has a crafts store that makes jewelry using beads (B) and copper (C). Her production function…

A: Given Production function: Q=B0.4C0.4 .... (1) Where B denotes beads and C denotes…

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

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

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: What does the long run average cost curve exhibit? It defines the least cost per unit of output when…

A: Answer: The long-run average cost (LRAC) curve shows the lowest cost per unit of output produced…

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: Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost…

A: Total cost refers to the total expenditure incurred by a person in producing a good or providing a…

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: How and why does a firm’s average-total-cost curve differ in the short run and in the long run

A: Short-run period is that period of time in which a firm can change its level of output by only…

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 variable cost
O Total fixed cost
O Marginal cost
O Average fixed cost

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?
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?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
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?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?