Business
EconomicsPrinciples of MicroeconomicsA firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it were to increase production to 21 units, which of the following must occur? a. Marginal cost would decrease. b. Marginal cost would increase. c. Average total cost would decrease. d. Average total cost would increase.
close solutoin list

A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it were to increase production to 21 units, which of the following must occur? a. Marginal cost would decrease. b. Marginal cost would increase. c. Average total cost would decrease. d. Average total cost would increase.

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 4CQQ
Textbook Problem

A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it were to increase production to 21 units, which of the following must occur?

a. Marginal cost would decrease.

b. Marginal cost would increase.

c. Average total cost would decrease.

d. Average total cost would increase.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.See solution
Chapter 13,
Problem 3CQQ
Chapter 13,
Problem 5CQQ

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 13 Solutions

Principles of Microeconomics
Show all chapter solutions
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...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
If nominal GDP is 400, real GDP is 200, and the money supply is 100, then a. the price level is , and velocity ...

Principles of Macroeconomics (MindTap Course List)

The Kroger Company is one of the largest grocery retailers in the United States, with over 2000 grocery stores ...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

An ATM personal identification number (PIN) consists of four digits, each a 0, 1, 2, 8, or 9, in succession. a....

Probability and Statistics for Engineering and the Sciences

(Price Floor) There is considerable interest in whether the minimum wage rate contributes to teenage unemployme...

ECON MICRO

Draw an example of a production possibilities frontier for Robinson Crusoe, a shipwrecked sailor who spends his...

Principles of Economics (MindTap Course List)

Bank A has a leverage ratio of 10, while Bank B has a leverage ratio of 20. Similar losses on bank loans at the...

Brief Principles of Macroeconomics (MindTap Course List)

(Alternative Measures of Profit) Why is it reasonable to think of normal profit as a type of cost to the firm?

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

What are the major types of teams?

Foundations of Business (MindTap Course List)

Income statement; net loss The following revenue and expense account balances were taken from the ledger of Aco...

Financial & Managerial Accounting

Describe the elements common to most current definitions of internal control.

Accounting Information Systems

Retail method A business using the retail method of inventory costing determines that inventory at retail is 39...

Corporate Financial Accounting

Communication Technology Social Media Team Web. Paramount Fitness Corporation, a commercial strength equipment ...

Essentials of Business Communication (MindTap Course List)

EXPECTATIONS THEORY Interest rates on 4-year Treasury securities are currently 6.7%, while 6-year Treasury secu...

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

Discuss the pros and cons of having the directors formally announce a firms future dividend policy.

Fundamentals of Financial Management (MindTap Course List)

Accounts receivable and accounts payable A subsidiary ledger is used for accounts receivable and accounts payab...

Accounting

Inventory Purchase Price Volatility In 2019, Steel Technologies Inc. changed from the LIFO to the FIFO method f...

Cornerstones of Financial Accounting

Does Whole Foods have very much long-term debt? What are the chief ways in which Whole Foods has financed asset...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

Give an example of how the capital expenditures budget affects other operating budgets.

Financial And Managerial Accounting

(Absolute and Comparative Advantage) You have the following Information concerning the production of wheat and ...

ECON MACRO

Name a way that your family interacts in the factor market and a way that it interacts in the product market.

Essentials of Economics (MindTap Course List)

What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Customer Refunds Payabl...

Financial Accounting

For each of the following items, circle either (a) or (b). In some cases, both (a) and (b) may apply to you. Yo...

Management, Loose-Leaf Version

A revenue account will begin with the number ________ in the chart of accounts. (a) 1 (b) 2 (c) 3 (d) 4

College Accounting, Chapters 1-27

Describe profit maximization in terms of marginal revenue and marginal cost.

Economics:

Structuring a Make-or-Buy Problem Coed Scents, a national producer of young adult perfumes and colognes, needs ...

Managerial Accounting: The Cornerstone of Business Decision-Making

Discuss the role of relationship marketing and strategic alliances in business marketing

MKTG 12:STUDENT ED.-TEXT

If the seller assumes the entire cost of transportation, without any reimbursement from the buyer, the freight ...

College Accounting (Book Only): A Career Approach

Differentiate the six categories of marketing.

Contemporary Marketing

Temporary Difference At the end of 2019, its first year of operations, Slater Company reported a book value for...

Intermediate Accounting: Reporting And Analysis

Why are traditional accounting events, such as recording a transaction in a journal and posting ledgers, not mo...

Accounting Information Systems

Journalize the following transactions, using the direct write-off method of accounting for uncollectible receiv...

Financial Accounting

Freight terms Determine the amount to be paid in full settlement of each of two invoices, (A) and (B), assuming...

Financial & Managerial Accounting

The Bureau of Transportation Statistics Omnibus Household Survey is conducted annually and serves as an informa...

Statistics for Business & Economics, Revised (MindTap Course List)

Fill in the missing data for the following table:

Exploring Economics

List five arguments often given to support trade restrictions. How do economists respond to these arguments?

Principles of Macroeconomics (MindTap Course List)

Indicate whether the following instruments are examples of money market or capital market securities. a. U.S. T...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What factors generally are considered in determining the allocation of profits and losses?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Compare and contrast the efficiency and effectiveness of an in-house data center, an arrangement with an outsou...

Pkg Acc Infor Systems MS VISIO CD

Suppose a company simultaneously Issues 50 million of convertible bonds with a coupon rate of 9% and 50 million...

Fundamentals of Financial Management (MindTap Course List)

Perpetual inventory using LIFO Assume that the business in Exercise 7-9 maintains a perpetual inventory system....

Accounting (Text Only)

The __________ is a working paper used by accountants to record necessary adjustments and provide up-to-date ac...

College Accounting (Book Only): A Career Approach

If the driving population increases in an area and the supply of freeway space remains constant, what will happ...

Macroeconomics

In the accompanying figure, PW is the world price and PW + T is the world price plus a tariff. Identify the fol...

Microeconomics

Calculate the Herfindahl index and the four-firm concentration ratio for the following industry:

Economics (MindTap Course List)

Assume a regulatory agency is given authority over prices and entry conditions for a given industry. Also assum...

Economics For Today

What are the risks associated with backdoor (maverick) buying and selling? Why is purchasing interested in cont...

Purchasing and Supply Chain Management

Entries for cash dividends The declaration, record, and payment dates in connection with a cash dividend of 1,2...

Corporate Financial Accounting

Ethics and professional conduct in business Phil Fritz is a financial consultant to Magna Properties Inc., a re...

Survey of Accounting (Accounting I)

United Steel manufactures two types of steel at three different steel mills. During a given month, each steel m...

Practical Management Science

How are pretax contributions by employees into cafeteria plans presented on Form 940?

PAYROLL ACCT.,2019 ED.(LL)-TEXT

Explain why the timing and quantity of cash flows are important in capital investment decisions.

Cornerstones of Cost Management (Cornerstones Series)

Correct the possessives. The new hires confidence was crushed by the managers harsh tone. This companies missio...

Bcom

What is shirking? If the managers of a firm are attempting to maximize its profits, will they have an incentive...

Microeconomics: Private and Public Choice (MindTap Course List)

The account that records a nations foreign economic transactions is called the a. trade account. b. T account. ...

Micro Economics For Today

If the Fed wants to expand the money supply, why is it more likely to do so by purchasing bonds and other finan...

Economics: Private and Public Choice (MindTap Course List)

In this chapter, it was stated that a private property right also involves having the right to transfer or exch...

Macroeconomics: Private and Public Choice (MindTap Course List)

The hypothesis that people believe that the best indicator of the future is the recent past is a. rational expe...

MACROECONOMICS FOR TODAY

Break-even sales and cost-volume-profit chart Last year, Hever Inc. had sales of 500,000, based on a unit selli...

Managerial Accounting

Singly, or in groups of no more than two, find a place to be a minority, such as a Korean wedding (as long as y...

Understanding Management (MindTap Course List)

bartleby
  • Contact Research (Essays)
  • High School Textbooks
  • Literature Guides
  • Essay Help
  • Mobile App
    • © 2021 bartleby. All Rights Reserved.