Which of the following is true? OIf Marginal product is above average product then average product must be increasing OIf Marginal product is below average product then average product must be increasing O Marginal product intersects average product at average products maximum O Marginal product never intersects average product O Both a and c are true

Which of the following is true? OIf Marginal product is above average product then average product must be increasing OIf Marginal product is below average product then average product must be increasing O Marginal product intersects average product at average products maximum O Marginal product never intersects average product O Both a and c are true

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 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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Similar questions

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
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?
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?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
How does fixed cost affect marginal cost? Why is this relationship important?
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.
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
How do we calculate marginal product?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
Are fixed costs also sunk costs? Explain.