Explain why the average variable cost curve and the average total cost curve get closer to each other as output increases.

Q: Calculate average cost when total cost is 300 and quantity is 15

A: # The average of the total cost which we spend on a single good is given by the average cost.…

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: How is the difference between average total cost and average variable cost impacted by an increase…

A: Average total cost is the total cost per unit whereas average variable cost is the total variable…

Q: The long run average cost curve is U shaped because up to a certain point you have excess K/L and…

A: Total cost refers to the total amount of expenditure incurred by the firm ti produce the given…

Q: Explain how input, output and cost are interrelated

A: A business needs to make use of inputs for turning them into outputs that could finally be sold in…

Q: Identify and describe three examples of economies of scale and three examples of diseconomies of…

A: Companies benefit from economies of scale as their production becomes more productive. Economies of…

Q: What is the Difference between Fixed Costs, Variable Costs, and Marginal Costs?

A: Fixed cost: Fixed costs are those costs that remain fixed for every unit of output produced. It does…

Q: Using the definition QxAC = TC where Q = output, TC = the total cost of production and AC = the…

A: The average cost of production is calculated by dividing the total cost (TC) by the total output…

Q: What explains why the long run average cost curve is u-shaped

A: First of all average cost fall in the beginning because the factor of production or the capital used…

Q: Why does as output increases, average variable cost initially declines and eventually begins to…

A: In an economy, the cost is analyzed in different ways, such as total cost, marginal cost, average…

Q: Why does the average fixed cost falls with the increase in output?

A: Fixed cost is that cost which doesn't Change in the short run as the production proceeds.  Average…

Q: Graph the following: The average fixed cost curve will never intersect with either the horizontal…

A: In the short run, a firm will have two types of cost: fixed cost and variable cost. Total fixed cost…

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: 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: 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: 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: Marginal cost curve always cuts the lowest point of the average total cost curve. Do you agree?…

A: Marginal Cost:Marginal cost refers to the additional cost of producing the additional unit of…

Q: the following table to answer the next question.   Output           Total Cost      0…

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

Q: State two examples of the fixed cost and two examples of the variable cost in economics

A: According to the given question Fixed cost are those cost in economics which are basically and…

Q: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

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: You are told that the marginal cost of production is increasing. Is it possible to determine whether…

A: Marginal cost of production refers to the additional cost of producing one extra unit of output,…

Q: The reason why the average total cost curve is u shaped is because

A: ‘Total cost(TC)’ is the amount that includes all the expenses that are paid to produce a certain…

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: Please complete the table with formula.

A: Given values:

Q: The marginal cost curve passes through the minimum point of the average variable cost curve but not…

A: ATC(Average total cost), MC(Marginal cost) and AVC(average variable cost) are U shaped curves. This…

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: Graph the following:  Average Total Cost curve and Average Variable Cost curve with proper…

A: Average total cost refers to per unit cost of production which is calculated by dividing total cost…

Q: Give an quantitative example of marginal and average cost.

A: Average cost is the equivalent of total fixed cost (TFC) and total variable costs (TVC) divided by…

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: Why is the Average Variable cost U-shaped

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

Q: What is direct cost? What is indirect cost? Provide detailed definitions and  example for both

A: The total cost of a product is generally categorized into direct and indirect costs.

Q: How do we calculate each of the following: marginal cost, average total cost, and average variable…

A: The total cost(TC)  is the production cost incurred on engaging various inputs i.e land, capital,…

Q: Which is the correct formula for the total cost of production?Note: TC is total Cost, AFC is average…

A: TC is the total cost of producing output TFC is the total fixed cost of producing output. It remains…

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: If the marginal cost is increasing, do you know whether average variable cost is increasing or…

A: Marginal cost is U shaped and average variable cost is also U shaped.

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: Fill in the blanks in the following table: Total cost Total fixed cost Total varjable cost Average…

A: Cost: The term cost refers to the situation under which a firm occurs various expenses during the…