Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Question
Chapter 7, Problem 8SQ
To determine
Shape of the fixed cost curve.
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Students have asked these similar questions
The difference between variable cost and fixed cost is that
Select one:
a. fixed cost is paid even when there is no output
b. fixed cost is always falling as output increases
c variable cost only increases for a while and then it decreases
d. fixed cost is always less than variable cost
e. fixed cost is not paid once production begins
Total variable cost
as output increases, and total fixed cost
as output increases
Select one:
A. increases; does not change
B. increases; increases
C. increases; decreases
D. does not change, does not change
Law of diminishing returns......
Chapter 7 Solutions
Microeconomics For Today (MindTap Course List)
Ch. 7.5 - Prob. 1YTECh. 7 - Prob. 1SQPCh. 7 - Prob. 2SQPCh. 7 - Prob. 3SQPCh. 7 - Prob. 4SQPCh. 7 - Prob. 5SQPCh. 7 - Prob. 6SQPCh. 7 - Prob. 7SQPCh. 7 - Prob. 8SQPCh. 7 - Prob. 9SQP
Ch. 7 - Prob. 10SQPCh. 7 - Prob. 11SQPCh. 7 - Prob. 1SQCh. 7 - Prob. 2SQCh. 7 - Prob. 3SQCh. 7 - Prob. 4SQCh. 7 - Prob. 5SQCh. 7 - Prob. 6SQCh. 7 - Prob. 7SQCh. 7 - Prob. 8SQCh. 7 - Prob. 9SQCh. 7 - Prob. 10SQCh. 7 - Prob. 11SQCh. 7 - Prob. 12SQCh. 7 - Prob. 13SQCh. 7 - Prob. 14SQCh. 7 - Prob. 15SQCh. 7 - Prob. 16SQCh. 7 - Prob. 17SQCh. 7 - Prob. 18SQCh. 7 - Prob. 19SQCh. 7 - Prob. 20SQ
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- When the marginal-cost curve lies: a. above the ATC curve, ATC rises. b. above the AVC curve, ATC rises. c. below the AVC curve, total fixed cost increases. d. below the ATC curve, total fixed cost falls.arrow_forwardA firm’s marginal product will be at a maximum at which of the following levels of output? A less than the quantity where average cost is a minimum. B greater than the quantity where marginal cost is a minimum. C greater than the quantity where average cost is a minimum. D less than the quantity where marginal cost is a minimum.arrow_forwardThe total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per widget at a production level of 300 units is closest to which of the following? a. $2,800 b. $6 c. $8 d. $4,000.arrow_forward
- Which of the following best describes total fixed cost?a.The change in total cost when one additional unit of output is produced.b.Total cost divided by the quantity of output produced.c.Total variable cost divided by the quantity of output produced.d.Cost that do not vary as output varies.arrow_forwardA company is planning to manufacture mountain bikes. Fixed monthly cost will be $100,000 and it will cost $100 to produce each bicycle. a. Write the cost function, C, of producing x mountain bikes. b. Write the average cost function, C, of producing x mountain bikes. c. How many mountain bikes must be produced each month for the company to have an average cost of $300 per bike?arrow_forwardThe law of diminishing marginal returns _____. a) is relevant in the short run. b) assumes all the inputs are fixed c) applies when all inputs are increasedarrow_forward
- The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The variable cost per widget is closest to which of the following? a. $1,000 b. $6 c. $8 d. $4,000.arrow_forwardWhich of the following would shift a firm's short-run cost curves downward? a.an increase in excise taxes levied on the firm's product b.an increase in the demand for the firm's product c.an advance in technology d.an increase in employees' wagesarrow_forwardWhereat for the firm operating at it efficient scale, a. the marginal cost curve intersects at the minimum point of AVC curve. b. the marginal cost curve intersects at the minimum point of ATC curve. c, the marginal cost curve intersects at the minimum point of AFC curve. d. the slope of total cost is the smallest.arrow_forward
- When marginal-cost curve lies:a. above the ATC curve, ATC risesb. above the AVC curve, ATC risesc. below the AVC curve, total fixed cost increasesd. below the ATC curve, total fixed cost fallsPlease, show your answer graphically.arrow_forwardA firm has the production function f(x, y) = x®y0.3, where a>0.7. This firm has Select one: a. decreasing returns to scale and increasing marginal product for factor x and y. b. None of the above. c. increasing returns to scale and diminishing marginal product of factor x. d. constant returns to scale. e. decreasing returns to scale and diminishing marginal products for factor y.arrow_forwardDiseconomies of scale exist over the range of output for which the long-run average cost curve is a. constant. b. falling. c. rising. d. none of the above.arrow_forward
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