An owner of a firm estimates that the average total cost is $6.71 and the marginal cost is $6.71 at the current level of output.  Explain the relationship between the marginal cost and average total cost figures.

Q: The total cost of producing 25 tons of butter is 45000. If the average variable cost is $775, then…

A: TC(Total) is the cost which is incurred by a firm in producing some specific level of output. It is…

Q: The statements and equations show various ways of defining average variable cost, marginal cost, and…

A: Average Variable cost refers to the variable cost per unit. It can be calculated as follows: In…

Q: Graphically show the relationship between the average total cost, variable cost and marginal cost…

A: Below are the formulas: AVC=TVCQATC=TCQMC=TCn-TCn-1 Where, AVC = Average variable cost TVC= Total…

Q: If the Marginal Cost for a product is found to be MC= 1500/15x+100' , and the cost of 80 units is…

A: We have, x= 80 Total cost = TC = $6000 at x = 80 Marginal cost, MC = 1500/ (15x+100) To find the…

Q: If you know that with 8 units of output, average fixed cost is $12.50 and average variable cost is…

A:

Q: A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it…

A: Average total cost is total cost divided by total output produced,  ATC = TC / Q Marginal cost is…

Q: A cost function is given. C(q) = 3800 + 7q – 0.03q² + 0.0003q³ (a) Find the average cost and…

A: Disclaimer :- as you posted multipart questions we are supposed to solve only the first 3 questions…

Q: Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What shapes would you generally expect each of the following cost curves to have: fixed costs,…

A: Cost curves shows how the cost of production changes when output/quantity changes.

Q: The average fixed cost curve will never intersect with either the horizontal or vertical axis. There…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: A company is planning to manufacture mountain bikes. The fixed monthly cost will be S100,000 and it…

A: Given that fixed monthly cost for manufacturing mountain bikes is $100,000. Cost of each bicycle is…

Q: The fixed costs of a firm are $100. When the firm produces one unit the total cost is $150. The…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Cost, revenue, and profit are in dollars and x is the number of units. If the daily marginal cost…

A: Given, Marginal cost (MC) = 4x+150 Fixed cost (FC) = $600 Here MC = dCdX

Q: Given the cost information below, answer the following questions. Output Total Cost $ 40.00 10…

A: a.Total fixed cost is equal to total cost when output is…

Q: If marginal cost is equal to average total cost then, (a) Average total costs are falling (b)…

A: Marginal cost depicts additional cost incurred in order to produce an additional unit of output.

Q: Which of the following is an example of a Variable Cost? A. an employee who makes $40,000 a year B.…

A: Fixed cost is the cost that remain same at all levels of output. Variable cost is the cost the…

Q: Which of the following must be falling when the short run marginal cost is less than it, and rising…

A: Total Cost is the sum of the Total Variable Cost and Total Fixed cost of any firm. Total Fixed is…

Q: Answer the question on the basis of the following cost data. Average Fixed Average Variable Output…

A: Average variable cost (AVC): - it is the average value of the cost incurred due to the employment of…

Q: For Questions 24 to 28, consider the following total cost function: TC = 0.2q° + 6q + 50 where TC is…

A: In a market, average total cost, marginal cost and other types of cost can be determined with the…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: The isoquant line shows the different combinations of factors of production required to produce a…

Q: fisherman has a fixed cost of Rs.10 (his rod). The variable cost of his time is Rs.5 per hour. Graph…

A: total cost = total fixed cost + total variable cost

Q: Which of the following cost curves is never U-shaped? a. the average fixed cost curve b. the…

A: The expenses that are being incurred for carrying out daily transactions of a business is being…

Q: Suppose that average total cost is $60, average fixed cost is $25, marginal cost is $45, and output…

A: Given,  ATC = $60 AFC = $25   MC = $45 Output = 300.

Q: Construct the cost schedule using the data. below for a firm operating in the short run.   Graph…

A: Total cost is the sum of all the cost that incurred by a firm in order to produce output. The…

Q: As long as marginal cost is below average variable cost or average total cost , then average…

A: When MC is below AVC, MC pulls the common down. When MC is above AVC, MC is pushing the typical up;…

Q: Total variable cost of the firm is $20 and the total fixed cost is $100 Calculate the total cost…

A: Answer: Given, Total variable cost = $20 Total fixed cost = $100 Total cost = Total variable cost +…

Q: how do you know the total variable is 50 when finding the total fixed cost

A: TC = AC * Q ------------------- MC is a change in TC due to changing quantity by one unit.  MCn =…

Q: What is the term for the change in total cost resulting from a one-unit increase in production?…

A: please find the answer below.

Q: Calculate the value of Total cost if average cost is $28 and the no of units is 21

A: The information given to us is:- Average cost = $28 No of units = 21 units We need to find the value…

Q: Find the attached file.

A: Fixed cost is the cost which does not vary with the change in the output. Marginal cost is the…

Q: If marginal cost is less than the average variable cost and output increases, average total cost…

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

Q: What is the average variable cost of producing 400 units of output?

A: Answer: Given that:      Labor  Output   Marginal Cost  Variable Cost  Fixed Cost  0  0    0  5…

Q: For Questions 24 to 28, consider the following total cost function: TC = 75 + 3q² where TC is total…

A: ("Since you have asked multiple questions, we will answer the first question for you. If you want…

Q: 1.  Marginal cost is calculated for a particular increase

A: We have found what is marginal cost.

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: Water World Water Park has the following cost function: TC = 500 + 125q and MC = 125 a) Determine…

A: Given: TC = 500 + 125q MC = 125

Q: Cost function C = 80q - 3q2 + q3 If MC function is 80-6q+3q2, At what output level the average cost…

A: Answer to the question is as follows:

Q: Calculate Marginal cost if total cost changes from 80 to 160 and output rises from 1 to 3

A: We are given that :- TC1 = $80 and TC2 = $160 Total cost rises from $80 to $160 And the output rises…

Q: In line with the information including the production amount and total cost of the firm and the…

A: In order to form the total cost equation, we will take the given data and make a regression…

Q: Marginal cost can be calculated both from total cost and total variable cost and is not affected by…

A: According to the given question The marginal cost is basically or initially considered as the slope…

Q: manufacturer!s total cost is C(x) = 0.1x3 - 0.25x2 + 300x + 100 dollars, where x is the level of…

A: We calculate the total cost with x=6 and x=6.1 and then see the difference. TC(6) = 0.1(6)3 -…

Q: Referring to the cost table above, what is the Marginal Cost of increasing quantity produced from…

A: TC = Total cost  that is related to production. It is the sum of Fixed cost and Variable cost. TC =…

Q: an interest payment on a loan to a firm is an explicit or implicit cost?

A: The implicit cost is an indirect cost defined as the opportunity cost of utilizing a firm's…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: Given that: Production Function: q = f(K, L) where K is capital and L is labor. Wage for one…

Q: A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to…

A: The total cost is the sum of fixed cost and variable cost. The fixed cost is the cost of fixed…

Q: A firm can build a plant of three different sizes. The short-run average total cost curves of each…

A: Answer to the question is as follows :