Business
EconomicsMicroeconomicsAnswer the following: a. If TVC = $80 and AVC = 4, then what does quantity ( Q ) equal? b. If total cost is $40 when Q = 2 and total cost is $45 when Q = 3, then what does marginal cost equal? c. What does average fixed cost equal at Q = 2 if total variable cost is $15 at Q = 2? d. Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as quantity of output increases?
Answer the following: a. If TVC = $80 and AVC = 4, then what does quantity ( Q ) equal? b. If total cost is $40 when Q = 2 and total cost is $45 when Q = 3, then what does marginal cost equal? c. What does average fixed cost equal at Q = 2 if total variable cost is $15 at Q = 2? d. Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as quantity of output increases?
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Microeconomics
13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406
BuyFindarrow_forward
Microeconomics
13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406
Solutions
Chapter
Section
Chapter 8, Problem 9WNG
Textbook Problem
Answer the following:
- a. If TVC = $80 and AVC = 4, then what does quantity (Q) equal?
- b. If total cost is $40 when Q = 2 and total cost is $45 when Q = 3, then what does marginal cost equal?
- c. What does average fixed cost equal at Q = 2 if total variable cost is $15 at Q = 2?
- d. Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as quantity of output increases?
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Chapter 8 Solutions
Microeconomics
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addCh. 8.2 - Will individuals form teams or firms in all...Ch. 8.2 - Is accounting profit or economic profit larger?...Ch. 8.2 - Suppose everything about two people is the same...Ch. 8.2 - When can a business owner be earning a profit but...Ch. 8.3 - If the short run is six months, does it follow...Ch. 8.3 - As we add more capital to more labor, eventually...Ch. 8.3 - Suppose an MC curve falls when output is in the...Ch. 8.4 - Identify two ways to compute average total cost...Ch. 8.4 - Would a business ever sell its product for less...Ch. 8.4 - What happens to unit costs as marginal costs rise?...
Ch. 8.4 - Do changes in MPP influence unit costs? Explain...Ch. 8.5 - Give an arithmetical example to illustrate...Ch. 8.5 - What would the LRATC curve look like if there were...Ch. 8.5 - Firm A charged 4 per unit when it produced 100...Ch. 8 - Explain the difference between managerial...Ch. 8 - Is the managerial coordination that goes on within...Ch. 8 - Is the managerial coordination that goes on within...Ch. 8 - Illustrate the averagemarginal rule in a noncost...Ch. 8 - A firm that earns only normal profit is not...Ch. 8 - The average variable cost curve and the average...Ch. 8 - Explain why earning zero economic profit is not as...Ch. 8 - Why does the AFC curve continually decline (and...Ch. 8 - What is the difference between diseconomies of...Ch. 8 - When would total costs equal fixed costs?Ch. 8 - Is studying for an economics exam subject to the...Ch. 8 - Some individuals decry the decline of the small...Ch. 8 - We know that there is a link between productivity...Ch. 8 - Some peoples everyday behavior suggests that they...Ch. 8 - Explain why a firm might want to produce its good...Ch. 8 - People often believe that large firms in an...Ch. 8 - The government says that firm X must pay 1,000 in...Ch. 8 - On the basis of your answer to question 17, does...Ch. 8 - Under what condition would a billionaire producer...Ch. 8 - For each lettered space in the following table,...Ch. 8 - Give a numerical example to show that as marginal...Ch. 8 - Price = 20, quantity = 400 units, unit cost = 15,...Ch. 8 - If economic profit equals accounting profit, what...Ch. 8 - If accounting profit is 400,000 greater than...Ch. 8 - If marginal physical product is continually...Ch. 8 - If the ATC curve is continually declining, what...Ch. 8 - When will total cost equal total variable cost?Ch. 8 - Answer the following: a. If TVC = 80 and AVC = 4,...
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