Business
EconomicsPrinciples of MicroeconomicsA firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to 1,001 units, its total cost would rise to $5,008. What does this information tell you about the firm? a. Marginal cost is $5, and average variable cost is $8. b. Marginal cost is $8, and average variable cost is $5. c. Marginal cost is $5, and average total cost is $8. d. Marginal cost is $8, and average total cost is $5.

A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to 1,001 units, its total cost would rise to $5,008. What does this information tell you about the firm? a. Marginal cost is $5, and average variable cost is $8. b. Marginal cost is $8, and average variable cost is $5. c. Marginal cost is $5, and average total cost is $8. d. Marginal cost is $8, and average total cost is $5.

BuyFind

Principles of Microeconomics

7th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305156050
BuyFind

Principles of Microeconomics

7th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305156050

Solutions

Chapter
Section
Problem 1CQQ
Problem 2CQQ
Problem 3CQQ
Problem 4CQQ
Problem 5CQQ
Problem 6CQQ
Problem 1QR
Problem 2QR
Problem 3QR
Problem 4QR
Problem 5QR
Problem 6QR
Problem 7QR
Problem 8QR
Problem 1PA
Problem 2PA
Problem 3PA
Problem 4PA
Problem 5PA
Problem 6PA
Problem 7PA
Problem 8PA
Problem 9PA
Problem 10PA
Chapter 13, Problem 3CQQ
Textbook Problem

A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to 1,001 units, its total cost would rise to $5,008.

What does this information tell you about the firm?

a. Marginal cost is $5, and average variable cost is $8.

b. Marginal cost is $8, and average variable cost is $5.

c. Marginal cost is $5, and average total cost is $8.

d. Marginal cost is $8, and average total cost is $5.

Expert Solution

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Chapter 13,
Problem 2CQQ
Chapter 13,
Problem 4CQQ

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Chapter 13 Solutions

Principles of Microeconomics
Ch. 13.1 - Farmer McDonald gives banjo lessons for 20 an...Ch. 13.2 - If Farmer Jones plants no seeds on her farm, she...Ch. 13.3 - Suppose Honda's total cost of producing 4 cars is...Ch. 13.4 - If Boeing produces 9 jets per month, its long-run...Ch. 13 - Raj opens up a lemonade stand for two hours He...Ch. 13 - Diminishing marginal product explains why, as a...Ch. 13 - A firm is producing 1,000 units at a total cost of...Ch. 13 - A firm is producing 20 units with an average total...Ch. 13 - The government imposes a 1,000 per year license...Ch. 13 - If a higher level of production allows workers to...
Ch. 13 - What is the relationship between a firm's total...Ch. 13 - Give an example of an opportunity cost that an...Ch. 13 - What is marginal product, and what does it mean if...Ch. 13 - Draw a production function that exhibits...Ch. 13 - Define total cost, average total cost, and...Ch. 13 - Draw the marginal-cost and average-total-cost...Ch. 13 - How and why does a firms average-total-cost curve...Ch. 13 - Define economies of scale and explain why they...Ch. 13 - This chapter discusses many types of costs:...Ch. 13 - Your aunt is thinking about opening a hardware...Ch. 13 - A commercial fisherman notices the following...Ch. 13 - Nimbus, Inc., makes brooms and then sells them...Ch. 13 - You are the chief financial officer for a firm...Ch. 13 - Consider the following cost information for a...Ch. 13 - Your cousin Vinnie owns a painting company with...Ch. 13 - The city government is considering two tax...Ch. 13 - Janes Juice Bar has the following cost schedules:...Ch. 13 - Consider the following table of long-run total...

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