Microeconomics
2nd Edition
ISBN: 9780073375854
Author: B. Douglas Bernheim, Michael Whinston
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3P
To determine
Identify the best choice of hour.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
To be efficient, outputs should be produced that minimize total cost. True or false
If marginal cost is greater than average total cost, then average total cost must be increasing.
Group of answer choices
True
False
In the figure above, which of the following statements makes sense?
Group of answer choices
A) Average fixed cost is B, marginal cost is D, average total cost is C and average variable cost is B.
B) Average fixed cost is C, marginal cost is B, average total cost is D and average variable cost is A.
C) Average fixed cost is A, marginal cost is B, average total cost is C and average variable cost is D.
D)Average fixed cost is D, marginal cost is A, average total cost is B and average variable cost is C
Knowledge Booster
Similar questions
- The average fixed cost curve will never intersect with either the horizontal or vertical axis.arrow_forwardWhich of the following is an example of an implicit cost associated with an action? - the cost of materials in undertaking a new renovation on your home -the hourly wage you could be earning instead of enjoying your leisure time -the tuition fee that a student pays for a term of college -the time a parent can't spend with their children because they are working there could be more then one correct choicearrow_forwardYou have been invited by friends to fly to Germany for October fest next year. For international travel, you apply for a passport that costs $97 and is valid for 10 years. After you receive your passport, your travel companions decide to cancel the trip because of “insufficient funds.” You decide to also cancel your travel plans because traveling alone is no fun. Is your passport expense a sunk cost or an opportunity cost? Explain your answer.arrow_forward
- Before the point of diminishing marginal returns, marginal cost will be increasing. Group of answer choices True Falsearrow_forwardAt zero level of production, _______ cost is always zeroarrow_forwardA decision maker wishes to minimize the cost of producing a given level of total benefit B = 288. The cost function is C = 6x + 3y. And the total benefit function is B = xy. Set up the Lagrangian and then determine levels of x and y at the minimum level of cost. What is the minimum value of cost?arrow_forward
- The optimum level of consumption or production for the individual consumer or firm will be where _________________________. Marginal Benefit is equal to Marginal cost Marginal benefit is greater than marginal cost Marginal benefit is less than marginal cost None of the abovearrow_forwardYou have just woken up and are trying to decide whether to attend an upcoming lecture. The following are the costs and benefits you are considering. Tuition is $7,000 per semester; Books are $500 per semester; Driving to class is $10; Wages earned if you went to work instead are $35; How much you value an extra hour of sleep = $25; The cost of tuition and books ___________ be included in your calculations because they are an example of ________________ costs. Group of answer choices A)should not; sunk B)should; sunK C)should; marginal D)should not; marginal E)should; opportunityarrow_forwardState the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is decreasing, is AVC is above (greater), equal, or less (below) than MC? ________ choose one AVC is minimum, is AVC is above, equal or less than MC? __________ choose one AVC is increasing, is AVC is above, equal, or less than MC? _________ choose onearrow_forward
- For the cost function C(Q) = 75 + 4Q + 2Q2, the marginal cost of producing 5 units of output is:arrow_forwardThe weekly cost C of producing x units in a manufacturing process is given by C(x) = 60x + 2250. The number of units x produced in t hours is given by x(t) = 50t. (a) Find and interpret (C ∘ x)(t). (C ∘ x)(t) = (C∘x)(t) represents the cost of production as a function of time. (C∘x)(t) represents the production as a function of cost. (b) Find the cost of the units produced in 4 hours.$ (c) Find the time that must elapse in order for the cost to increase to $15,000. hrarrow_forwardCalculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C(x), the cost of producing x items (of whatever they are selling). This question deals with just the cost function C(x). Problem Set question: The cost, in dollars, of producing x units of a certain item is given by C(x)=5x−4x−1−−−−√. Find the production level that minimizes the average cost per unit. The number of units that minimizes the average cost is .arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning