Loose Leaf Microeconomics with Connect Access Card
20th Edition
ISBN: 9781259287084
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 9.5, Problem 4QQ
To determine
Average total cost .
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Students have asked these similar questions
Which of the following statements regarding marginal analysis is true?
A.
If total cost is falling, marginal cost must be positive.
B.
If total cost is rising, marginal cost must be rising.
C.
If total cost is rising, marginal cost could be falling.
D.
If total cost is falling, marginal cost could be zero.
In the short run marginal cost crosses average total cost at the minimum of average total cost
True or False?
Cost curves.
a) Why does the difference between AVC and ATC get smaller as Q increases?
b) Why does MC intersect AVC and ATC at their minimum points?
c) Explain the difference between the short run and the long run.
d) What is meant by “economies of scale”? (Hint: it has to do with long run average cost)
e) Give an example of economies of scale and explain.
Chapter 9 Solutions
Loose Leaf Microeconomics with Connect Access Card
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Indicate how each of the following would shift the...Ch. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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Similar questions
- Graph the curves for total cost, ATC, AVC, AFC, MC. Explain shape of these curves and the relationship between ATC and MC.arrow_forwardMarginal analysis (a.k.a. thinking at the margin) Multiple selects assumes dimishing marginal returns does not allow for hypothetical questions considers unit changes implies that MR=MC allows for negative marginal returnsarrow_forwardA. Graph total fixed cost, total variable cost and total cost B. Explain how the law of diminishing returns influences the shapes of the total variable-cost and total costbcurvesarrow_forward
- 2. The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the left of the minimum of AVC. d. cut AVC at the minimum of AVC but cut ATC at a point to the right of the minimum of ATC. b. cut ATC at the minimum of ATC but cut AVC at a point to the right of the minimum of AVC. e. cut both ATC and AVC at their respective minimums c. cut AVC at the minimum of AVC but cut ATC at a point to the left of the minimum of ATC. explain your answer above thoroughly--graphical, algebraically, numerically.arrow_forward2. The Marginal Cost curve will a. cut ATC at the minimum of ATC but cut AVC at a point to the left of the minimum of AVC. d. cut AVC at the minimum of AVC but cut ATC at a point to the right of the minimum of ATC. b. cut ATC at the minimum of ATC but cut AVC at a point to the right of the minimum of AVC. e. cut both ATC and AVC at their respective minimums c. cut AVC at the minimum of AVC but cut ATC at a point to the left of the minimum of ATC. Choose and explain your answer above thoroughly--graphical, algebraically, numerically. Please use a graph in your answer, and explain in as much detail as possible.arrow_forwardwhat is meant by the term Cost of production? Distinguish between fixed and variable cost. Why short run average cost and marginal cost curve generally U-Shaped?arrow_forward
- The President of ACME wants to know why he shouldn't produce at the point when average costs are the lowest. Explain to him why this is not the best production level.arrow_forwardExplain and identify the relationship between total cost, average cost and marginal costusing diagram. How the short-run ATC curve is different from long-run ATC for afirm?arrow_forwardThe marginal-cost (MC) curve cuts through the average-total-cost (ATC) curve and the average-variable-cost (AVC) curve at their maximum points. Select one: True O Falsearrow_forward
- Average total cost, average variable cost marginal cost and marginal product b. The relationship between marginal product and marginal cost is reciprocal or opposite. Why is it so? Explain.arrow_forwardHow can I construct a cost curve for ATC, AVC, MCarrow_forwardIf production increases, what happens to average variable cost (AVC), does it increase only, decrease only, or decrease, increase and then increase? _______________ choose onearrow_forward
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