Average cost is defined as a. total cost divided by marginal cost. b. total cost divided by total output. c. total output times cost per unit. d. total output times marginal cost.
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- What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?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.a. Define economies of scale and explain why they might arise. Definediseconomies of scale and explain why they might arise. b. Explain the relationship between total product, marginal product, and averageproduct.c. How does fixed cost affect marginal cost? Why is this relationship important?
- Which of the following is true of the relationship between Average Cost and Marginal Cost Select one: a. None of the answers given b. Average increases when marginal cost decreases c. Average costs decreases when marginal cost increases d. Average costs increases when marginal cost increases1. Economies and Diseconomies of scale 2. Graph of marginal cost, average cost and average total cost. Take an example 3. Marginal cost, average variable cost, and average total cost. Take an exampleIf the marginal cost of production is greater than the average cost, in what direction must the average cost be changing if any? A. The average cost must be rising. B. The average cost would equal 0. C. The average cost must be falling. D. The average cost is unaffected. E. The average cost would become non-existent.
- The average total cost (ATC) curve will be downward sloping so long as the a. marginal cost is greater than average total cost. b. marginal cost is less than average total cost. c. average variable cost is less than average total cost. d. average fixed cost is less than average total costWhich of the following statement is correct? a. Marginal cost will equal average total cost when marginal cost is at its lowest point. b. When marginal cost is less than average total cost, average total cost will rise. C. When marginal cost is greater than average total cost, average total cost will fall. d. Marginal cost will equal average total cost when average total cost is at its lowest point.Costs A. B. 80 120 160 180 200 Refer to the graph above to answer this question. What does point a represent? C. D. MC Economic capacity. Maximum marginal product. Excess capacity. AVC Maximum average product. ATC
- Learning by doing is represented by A. no change in the average total cost curve. B. an increase in the average total cost curve. C. a decrease in the average total cost curve. D. an increase in the average total cost curve and a decrease in the marginal cost curveWhen marginal cost exceeds average total cost, a marginal cost must be rising. b average total cost must be falling. c average total cost must be rising. d average fixed cost must be rising.Which of the following must be falling when the short run marginal cost is less than it, and rising when the short run marginal cost is greater than it? Choose all answers that are correct. a.Short run average total cost b.Variable cost c.Fixed cost d.Average variable cost