Which of the following is NOT true? At the minimum-cost output, the marginal cost curve crosses the average totai cost curve At output greater than the minimum-cost output, marginal cost is greater than average total cost and average total cost is falling At output less than the minimum-cost output, marginal cost is less than averag total cost and average total cost is falling At output greater than the minimum-cost output, marginal cost is greater than average total cost and average total cost is rising
Which of the following is NOT true? At the minimum-cost output, the marginal cost curve crosses the average totai cost curve At output greater than the minimum-cost output, marginal cost is greater than average total cost and average total cost is falling At output less than the minimum-cost output, marginal cost is less than averag total cost and average total cost is falling At output greater than the minimum-cost output, marginal cost is greater than average total cost and average total cost is rising
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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Transcribed Image Text:Which of the following is NOT true?
At the minimum-cost output, the marginal cost curve crosses the average total
cost curve
At output greater than the minimum-cost output, marginal cost is greater than
average total cost and average total cost is falling
At output less than the minimum-cost output, marginal cost is less than average
total cost and average total cost is falling
At output greater than the minimum-cost output, marginal cost is greater than
average total cost and average total cost is rising
Transcribed Image Text:The average total cost of baking 5 cookies is 80 cents and the average total cost of
baking 6 cookies is 70 cents. What is the marginal cost of producing 6th cookie?
(Hint: You cannot directly calculate the marginal cost, you need to first calculate
some other cost(s) that will then allow you to calculate the marginal cost)
10 cents
20 cents
70 cents
80 cents
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