Which of the following relationship is correct? When marginal cost (MC) starts to increase; average variable cost (AVC) starts to decrease When marginal product (MP)starts to decrease, marginal cost (MC) starts to increase When marginal product (MP) starts to decrease, marginal cost (MC) starts to decrease O When marginal product (MP) starts to increase; marginal cost (MC) starts to increase

Q: Which of the following is true:     A. Long Run Average Total Costs are always smaller or equal…

A: The first statement is True. This is because in long run, all factors of production are variable and…

Q: The law of diminishing returns happens when each additional unit of a variable input results in a…

A: The law of diminishing returns is also known as law of variable proportion. It is applicable on…

Q: Average total cost, average variable cost marginal cost and marginal product b. The relationship…

A: Average Total Cost or Average Cost is the total cost (TC) divided by the number of units produced…

Q: Solve the attachment.

A: The firms incur costs as per their production processes and other requirements to maintain and make…

Q: Can you differentiate which is the best and which is the worst between Constant Cost Condition,…

A: In a perfectly competitive market, the long-run industry supply curve explains the relationship…

Q: Draw an example of the Total Fixed Cost, Total Variable Cost, and Total Cost of a company whose…

A: Total Cost: The term total cost refers to the sum of all the costs that are used in the production…

Q: Which of the following is true of fixed costs?   a. Fixed costs can be changed, but it is…

A: Fixed costs are those that do not change with changes in the output level produced. They are the…

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: Given the following cost functions: TC=100+60Q-3Q2+0.1Q3 TC=100+ 60Q+3Q2 TC=100 + 60Q Compute…

A: Since you have posted multiple questions so as per the answering guidelines, I have solved the first…

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 false? O The total fixed cost curve has the same slope as the…

A: When a firm makes production activities in the market, it faces two types of costs that are fixed…

Q: Assume a standard marginal cost curve and average cost curve for firms producing cellular phones.…

A: Points to be considered: * Technological advancement increases the production/output. * MC and AC…

Q: When the marginal cost curve lies below the average total cost curve, it is true that as output…

A: Answer to the question is as follows:

Q: QUESTION 4 Match each of the following terms and descriptions Average Fixed Cost Average Total Cost…

A: Providinf full. Solution.

Q: Which of the following is true of the relationship between Average Cost and Marginal Cost Select…

A: Average Cost refers to the per-unit cost of production, it means both fixed and variable costs are…

Q: Assume that the marginal cost of production is increasing. Can you determine whether the average…

A: AVC is the cost which is measured by dividing average cost by the quantity of output produced.  MC…

Q: Which of the following is a correct statement about the relationship between average cost (AC) and…

A: The relationship between MC and AC can be stated as under: (i) When AC falls with increase in…

Q: Suppose that the marginal cost of producing a pound of cereal is $2, irrespective of the level of…

A: Marginal cost is in addition to total cost because of producing one more unit of output. Average…

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: Which of the following relationship is correct? O When marginal product (MP)starts to decrease,…

A: MP is the additional change in total output due to produce of one additional unit of output  MC is…

Q: If c=3q-3q2+q3is a cost function, when is marginal cost decreasing?

A:

Q: Which of the following statements are true according to the previous graph? Check all that apply.…

A: Total cost is the sum of all costs incurred in the production process. The total cost can be divided…

Q: What are a total variable cost and average variable cost?

A: Total Variable costs are those costs that change when the input changes. For example-wages, when…

Q: 1.7 Use the information in the graph to find the values for the following costs at an output level…

A: Total fixed cost refer to the total expenditure which remain fixed at all levels of output . It does…

Q: Which of the following cost curves is never U-shaped? a. the average fixed cost curve b. the…

A: The expenses that are being incurred for carrying out daily transactions of a business is being…

Q: Suppose that average total cost is $60, average fixed cost is $25, marginal cost is $45, and output…

A: Given,  ATC = $60 AFC = $25   MC = $45 Output = 300.

Q: For an increase in output, average costs change by more in the short run than in the long run, but…

A: Average Price The total cost is divided by the number of things produced to get the average cost.…

Q: Explain why marginal cost curve (MC) cuts average cost curve(ATC) and average variable cost (AVC) at…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: What is the difference between economic profit and accounting profit? What is a normal rate of…

A: As per honor code, we’ll answer only one question at a time , we have answered the first question…

Q: curve II is the

A: In this figure there are three curves they are Total cost, Total fixed cost and Total variable cost.

Q: When output increases from 20 to 30 units the total cost increases from $500 to $600. Assuming the…

A: Average Total Cost (AC): - it is the average value of total cost by producing a specific unites of…

Q: If accounting profit is $400000 greater than economic profit, what do implicit costs equal?

A: Implicit cost: A certain expense is any cost that has just happened yet not appeared or detailed as…

Q: Which of the following statements are true according to the previous graph? Check all that apply. O…

A:

Q: Which of the following statement is correct? a. Marginal cost will equal average total cost when…

A: Let's first understand what's the meaning of marginal cost. The cost which is incurred on the…

Q: You are given the following cost functions: TC=100+60Q−3Q2+0.1Q3TC=100+60Q−3Q2+0.1Q3…

A: Total cost (TC): It is the sum total of the cost that is being borne by the producer in the process…

Q: Is the below statement correct or incorrect? Explain Briefly. If average product is negative,…

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

Q: Which of the following statements is true? Group of answer choices If the marginal product of labor…

A: According to the law of diminishing returns as more units of the variable input labor is used with a…

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: Consider a linear, increasing function for total costs. If there are fixed costs, which one of the…

A: Answer: A (Marginal cost is always falling) Explanation: The marginal cost will be constant in the…

Q: The diagram displays short-run cost curves for a facility that produces liquid crystal display (LCD)…

A:

Q: Explain which of the following is a fixed cost or a variable cost for General Motors. a. The cost…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…

A: The Long-run average cost curve is defined as a curve which portrays a firms lowest cost per unit at…

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

A: Costs are the expenses that firms incur in the production of goods and services.

Q: Which of the following statements about average and marginal cost is INCORRECT? (2) (1) The marginal…

A: MARGINAL COST CURVE: A graph that shows the relationship between a firm's marginal cost in the…

Q: Indicate how each of the following would shift the (1) marginal- cost curve, (2)…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then…

A: Average cost is the per unit cost of production. it is the ratio of total cost and output.  Marginal…

Q: Which of the following is true at the output level where average total cost is at its minimum? OA…

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