Which of the following statements is true? Group of answer choices If the marginal product of labor diminishes, the total cost rises at a diminishing rate. If the marginal product of labor diminishes, the average total cost rises. If the marginal product of labor diminishes, the average variable cost is constant. If the marginal product of labor diminishes, the marginal cost falls. If the marginal product of labor diminishes, the average fixed cost rises.

Q: Answer the following with the required graph. a) Describe the shape of the average fixed cost. b)…

A: The money spent to purchase the fixed and variable factor of production to produce the goods and…

Q: The government imposes a $1,000 per year license fee on all pizza restaurants.  As a result, which…

A: License fees are generally considered to be fixed costs. It is the money paid by a person using…

Q: Marginal product will eventually go down because of  the law of diminishing marginal utility.  the…

A: The marginal product of a factor input is the additional output that is generated when an…

Q: The statements and equations show various ways of defining average variable cost, marginal cost, and…

A: Average Variable cost refers to the variable cost per unit. It can be calculated as follows: In…

Q: Which of the following is always downward-sloping? a. The marginal cost curve when it is below the…

A: The firms, producers, and sellers are considered to one of the major players in the markets. The…

Q: suppose Jack produces chocolate with two inputs : factory and labor.  If the workers become more…

A: Labor productivity has increased. Labor productivity and cost of production (except fixed cost) are…

Q: When average variable cost is at a minimum, Multiple Choice   marginal cost is at a maximum.   the…

A: Option D When AVC is at a minimum, APL is at maximum AVC and AP are inversely related.

Q: Use Exhibit 2. For Comfy Chair Factory, which of the following statements is (are) correct? (x) The…

A: Total cost is the summation of Fixed cost and variable cost . Where varible cost when there is no…

Q: When the marginal product of labor diminishes average fixed cost rises average variable cost is…

A: Marginal product of labor is the additional output produced by employing an additional unit of…

Q: Which of the following relationship is correct? When marginal cost (MC) starts to increase; average…

A: MC is the slope of TC(total cost). ATC is the per unit cost of product obtained by the ratio of TC…

Q: Often the marginal cost (MC) is initially decreasing as Q rises because... the marginal productivity…

A: Marginal product refers to change in total output due to an addition of one more unit of input.

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: If a firm is using optimal input proportions, it is minimizing its costs

A: A firm determines optimal input proportions by equating the slope of the isocost line with the slope…

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 always downward-sloping?  a. The marginal cost curve when it is below the…

A: Marginal cost refers to change in total cost with respect to change in output. Average total 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: True or False The slope of the total cost curve is equal to marginal cost, or the change in…

A: Total cost It refers to all the cost or expense that is incur in a production process.It is given by…

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: Continuing to refer to Table 7.9 and Figure 7.7, compute the average total cost, average variable…

A: * SOLUTION :-    Given that ,

Q: Differences between implicit cost and explicit cost

A: Explicit costs are defined as those costs which leads to an outlay of cash from the business. It is…

Q: Distinguish explicit cost and implicit cost

A: We can classify costs on the basis of payments. These are: 1-Explicit cost 2-Implicit cost…

Q: The vertical distance between the average total cost curve and the average variable cost curve....

A: Variable cost: The variable cost can be defined as the cost that is being borne on the variable…

Q: If we have information about workers’ marginal products, then total and average product can be found…

A: Summing the marginal values will give total product.

Q: Is it true or not that the marginal cost  C′(x) is equal to the average cost at the critical points…

A: Average cost is the cost of making a single product calculated by dividing the Total cost by the…

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: Suppose a pizza parlor has the following production costs: $5.00 in labor per pizza, $4.00 in…

A: Fixed Cost is constant at all units of output produced.  Vraiable Cost changes as the output…

Q: Graphically, the marginal cost curve and the average total cost curve intersect where

A: The marginal cost (MC) curve and the average total cost (ATC) curve interest at the minimum point of…

Q: Which of the following is considered an implicit cost? PLEASE EXPLAIN.   A. Use of your labor…

A: Implicit Cost is self owned cost not need to pay to other or a cost has already occurred not…

Q: For the given cost function C(x)=250√x+ x^2/3375 -find a) The cost at the production level 1100…

A: Given: C(x) =250x+x23375

Q: is it true that the marginal cost curve intersects the average variable cost curve at the break-even…

A: Marginal cost: It is the cost that is incurred by the firm to produce one extra unit. Average…

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: Label each of the following as sunk cost, opportunity cost, or incremental costs and briefly explain…

A: The whole cost of producing a product may be included in a company's financial records as the cost…

Q: Which of the following statements is correct? Multiple Choice ___ Marginal cost is the change in…

A: Marginal cost is defined as the extra coat a firm incurs by employing an extra unit of input.

Q: Suppose Marcus produces chocolate with two inputs: factory and labor. If the workers become more…

A: If the workers become more productive due to the training provided to them, the output would also…

Q: In Figure 2-a, the average variable cost curve is curve Group of answer choices A D C B

A: Total cost is a sum of fixed cost and variable cost.

Q: Comment on the following statement: "Average cost includes both fixed and variable costs, whereas…

A: Average Cost= Total Cost/Output Total Cost=Total Fixed Cost+Total Variable cost Marginal cost=Change…

Q: Explain the theoritical relationship between average variable cost and the marginal cost

A: Average variable cost is the total variable cost per unit of output.  AVC = TVC / No of units…

Q: Which of the following relationship is correct? When marginal product (MP) starts to increase;…

A: MP is the marginal product which is the additional product produced with an additional unit of…

Q: The cost, in dollars, of producing æ units of a certain item is given by C (z) = 5x – 4/7 – 1. Find…

A: Average cost (AC) is defined as the per unit cost of producing a commodity.  AC = TC/x

Q: Q.1.16 The vertical distance between the average total cost curve and the average variable cost…

A: Note: As per the guidelines, we are supposed to answer only one question when multiple questions are…

Q: With appropriate examples explain how marginal cost is related only to total variable cost.

A: Cost Cost refers to the actual expenditure on inputs (i.e. explicit cost) and the imputed value of…

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: A firm is producing 20 units with an average total cost of $25 and a marginal cost of$15. If it were…

A: Average cost or ATC refers to the average cost of production of each unit. It is calculated as the…

Q: How would each of the following affect average total cost, average variable cost, and marginal cost?…

A: GIVEN  How would each of the following affect average total cost, average variable cost, and…

Q: A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to…

A: The total cost is the sum of fixed cost and variable cost. The fixed cost is the cost of fixed…