which of the following reflects the correct rleationship between average total cost(ATC) and marginal cost (MC) a. When MC>ATC; ATC is falling b. when ATC is minimum; ATC

Q: You are planning to start a business. When calculating the costs. You have considered the costs of…

A: Opportunity cost refers to the best alternative foregone when choosing the other alternative.

Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…

A: Answer to the question is as follows:

Q: Which of the following statements is TRUE? O The average variable cost curve must always be…

A: The addition of fixed and Variable Cost gives us total costs, which when divided by the output give…

Q: True or false? a. The AFC curve can never rise. b. Diminishing marginal product is a long-run…

A: The AFC stand for Average Fixed Cost curve which refer to that price of a commodity in the economy…

Q: What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b. Returns to…

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: Answer the question on the basis of the following cost data.   Output Total Cost 0 $ 24 1 33 2 41…

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Q: ATC is decreasing, is ATC is above (greater), equal, or less (below) than MC? ________ choose one…

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Q: Which of the following statements is (are) correct? (x) If marginal cost is less than average total…

A: Average total cost refers to total cost per unit of output. Average total cost is the sum of average…

Q: The marginal-cost (MC) curve and the average-variable-cost (AVC) curve are same images of the…

A: MC is the cost which is associated with the MP and the cost which is associated with the AP is the…

Q: If a store owner increases the size of his store producing more quantities of his product, and…

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Q: Which of the following cost relationships is incorrect? a. APL=TP/L b. TVC= TC-FC c. MC=change in…

A: Total cost is the sum of Fixed cost and variable cost. Fixed cost remains same at all levels of…

Q: Cost, Revenue & Profit For these problems, xx will represent the number of items and yy will…

A: Slope intercept form: Y=AX + B

Q: 1. Answer the question on the basis of the following cost data. Outpu Average Fixed Average Variable…

A: The firms operating in a market incur two types of costs, fixed costs, and variables costs. Fixed…

Q: Which of the following statements is entirely correct? OBoth economies of scale and diminishing…

A: Economics of scale refers to impact on the total output if all the input factors are changed. While…

Q: Output Total Cost 0 24 1 33 2 41 3 48 4 54 5 61 6 69 Refer to the above data. The…

A: Fixed cost is the cost that does not vary with the output produced.

Q: Economist describe short run decisions as constrained decisions while long run decision are…

A: In the short run, few costs are fixed and few are variable but in the long run their will be no…

Q: The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the…

A: Marginal cost: Minimal expense speaks to the gradual costs brought about while creating extra units…

Q: Given the Total Product indicated in Table 2, complete MFMI’s cost schedule including variable…

A: The variable cost can be calculated by using the following formula as follows: Variable cost=Total…

Q: Three college students are considering operating a tutoring business in economics. This business…

A: Fixed costs are the costs paid for resources whose quantities cannot be changed in a fixed period.…

Q: Evaluate the view that the main goal of firms will always be cost minimization.  You are interested…

A: 1) The main goal of the firm is cost minimization. This is because if the firm minimises the cost,…

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Given Information: Units produced Costs 0 $600 200 $1200 400 $1600 600 $1800 The fixed…

Q: Define explicit costs and implicit costs.      b. Assume the following: * A firm buys a unit of…

A: Explicit cost is the cost that is incurred for paying external expenses like wages to employees,…

Q: The four statements below describe properties of a firm's short run cost curves. Complete the…

A: Average cost is the sum of average fixed cost an average variable cost. It is a U-shaped curve.

Q: 21

A: Short run production function means where only one factor is variable in nature and other factor…

Q: Marginal analysis (a.k.a. thinking at the margin) Multiple selects     assumes dimishing marginal…

A: Marginal analysis is the process of comparing additional benefits accrued to the additional costs…

Q: The marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the…

A: Marginal cost is the cost of producing an additional unit. With the increase in production, till a…

Q: Which of the following statements is NOT correct? O The long-run total cost curve is the lower…

A: Marginal rate of technical substitution is the rate at which input factor labour and capital is…

Q: $100 90 80 70 60 50 40 30 20 10 1 2 3 4 567 89 10 Quantity of Output Refer to Figure 7-3. Which is…

A: please find the answer below.

Q: The upward sloping portion of a long-run average cost curve illustrates diseconomies of scale.…

A: Economies of scale refer to the production gets cheaper when more and more units are produced (up to…

Q: The MC curve crosses the ATC curve at ATC's minimum, because A. ATC is falling when MCATC B. ATC is…

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

Q: Which of the following is correct regarding the shape of total fixed cost curve (TFC) ? (A)…

A: According to the given question Total fixed cost curve in simple words relatively refers to the…

Q: The marginal cost (MC) curve intersects the a)AVC and AFC curves at their minimum points. b) ATC…

A: The cost of production is the money spent to purchase the factor of production. There are two types…

Q: Which of the following statements regarding a firm's long-run average total cost (LRATC) curve and…

A: In the economy, there is a difference in the short-run and long-run cost curve of a firm because in…

Q: Which of the following is always true?A) When marginal costs are less than average total costs,…

A: Below are the cost curves: (Sorry it’s a free hand diagram so it is not very neat)

Q: Assuming decreasing returns to scale, illustrate the long run average cost curve under the following…

A: There are basically two types of economies, real economies and pecuniary economies.

Q: Find TC, MC, AFC, AVC, and ATC from the following table. Instructions: Enter your responses rounded…

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Q: Water World Water Park has the following cost function: TC = 500 + 125q and MC = 125 a) Determine…

A: Given: TC = 500 + 125q MC = 125

Q: Which statement must be false? a)  When a firm has increasing returns to scale in production, its…

A: Increase return to scale : where production  increase proportionally same as input increased. .…

Q: OUTPUT TOTAL COST 40 1 49 57 64 4 70 77 6. 85 : The TVC of producing 4 units of output is : The AFC…

A: "The total variable cost represented by TVC indicates the total of all the variable costs of inputs…

Q: . The marginal cost when output = 10 is equal to a. the slope of a line drawn tangent to the total…

A: # Marginal cost is the total cost per unit of output. The formula for marginal cost is:- MC = TC / Q…

Q: using the cost given in the table below, derive the values for the total cost (TC), average fixed…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.