Answered: Draw the marginal-cost and…

Draw the marginal-cost and average-total-cost curvesfor a typical firm. Explain why the curves have theshapes that they do and why they intersect wherethey do.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

See similar textbooks

Related questions

Q: 9. Firm's Cost Schedule Jane's Juice Bar has the following cost schedules: In the following table,…

A: 1. Marginal cost = Change in costs / Change in quantity 2. Average Variable Cost = Variable…

Q: of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If…

A: The marginal revenue curve is a horizontal line at the market price, implying perfectly elastic…

Q: As output increases, total fixed cost A. increases; decreases B. does not change; decreases C.…

A: total cost is the cost which is incurred by producer for production by using all fixe and variable…

Q: How and why does a firm’s average-total-cost curvein the short run differ from its…

A: Total cost (TC) equals the total fixed and variable costs. An average total cost function is the…

Q: he short-run and long-run average cost functions of a firm are generally U-shaped. This implies high…

A: In economics, a CF {"cost function"} is described as a function of an output quantity and P {prices}…

Q: How are the marginal cost curve and average variable cost (AVC) curve related? Explain why the AVC…

A: Marginal cost (MC) is that the cost of manufacturing an additional unit of output.Average variable…

Q: oth in the short - run and the long - run , average cost curves are U - shaped for different reasons…

A: Average cost is the per unit cost incurred in the production of a commodity. It is obtained by…

Q: Daad Karim is a fisherman in Gawadar. Hours Quantity of fish in Kilograms 0 0 1 5 2 9 3…

A: Marginal product (MP) = Change in Q / Change in L L Q MP 0 0 1 5 5 2…

Q: customers there while you golf. Why do you think a miniature golf course would stay open during the…

A: *answer:

Q: P in the remaining cells of the table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost…

A: The formula for computing the average and marginal cost of production: 1) Margina cost, MC =…

Q: Output (Cups of tea per hour) Total Cost in Rs. 0 30 1 33 2 38 3 45 4 54 5 65 6 78…

A: We are going to undergo cost analysis to answer this question.

Q: L Q TVC TC AVC AFC ATC MC 4 20 5 26 6 30…

A: Total cost is the sum of fixed and variable costs. Average cost is the per unit cost of output.…

Q: A D Quantity (units per day Curve C represents which type of cost curve? O A. marginal cost (MC) B.…

A: Average total cost is the sum of average Fixed cost and average variable cost. Average Fixed cost…

Q: Which of the following does not change with the level of output? O Marginal cost O Total fixed cost…

A: Marginal cost is the change in total cost with respect to change in output. Average Fixed cost is…

Q: (Cups of tea per hour) Total Cost in Rs. 0 30 1 33 2 38 3 45 4 54 5 65 6 78 7 93 8…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Which of the following does not change with the level of output? O Total variable cost O Total fixed…

A: There is an inverse relationship between output and average fixed cost. When an increase in output…

Q: The table shows a firm's total and marginal costs. Output Total cost ($) Marginal cost ($) 1 200 20…

A: Marginal cost=Change in Total CostChange in outputAverage Fixed cost=Fixed CostQuantityTotal…

Q: WW is a small automobile manufacturer. The table below shows WW’s long-run average total cost:…

A: Theory and definitions- There are three types of returns to scale- Economies of scale The constant…

Q: 4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Dallas. The…

A: The given table can be completed by using the following formulas.

Q: In long run production, which of the following does NOT fluctuate? OA All costs can fluctuate in…

A: Money has been evolved since the ages and everyone uses money for number of purposes. There are…

Q: ane's Juice Bar has the following cost schedules: In the following table, complete the marginal…

A: Total cost is the total expenditure done by a firm on the production process. The total cost…

Q: What is the diference between total cost and vaiable cost in the long nun? In the long run A. the…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A. A firm’s fixed costs for 0 units of output and its average total cost of producing different…

A: A. Fixed costs are those costs which a company has to incur irrespective of any business activity…

Q: variable costs (AVC), average total costs (ATC), and marginal costs (MC) to fill in the missing…

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

Q: Please see the attached two pictures, one for the graph, and the other for the questions.

A: In the third part of this question, which was uploaded in the previous link, there is a correction.…

Q: . Jane’s Juice Bar has the following cost schedules:Quantity Variable Cost Total Cost0 vats of juice…

A: Total cost is classified into two parts, variable cost and fixed cost. In the short run fixed cost…

Q: Meanings: TFC TVC - Total Variable Cost TC - Total cost - Tatal Fixed cost AFC average Fixed Cast…

Q: Marginal cost is: 20.00- 19.00- MC = 5-8q + 3q? 18.00- 17.00- 16.00- 15.00- 14.00- n 13.00- 12.00- E…

A: Marginal cost is defined as the cost of producing an additional unit of output. Marginal cost is…

Q: Calculate economic and accounting profit, and explain the importanceof the difference.

A: Profits are the excess of the revenue receipts over the firm’s total spending incurred during a…

Q: Icreasest vny 10.) Fill in the blanks in the following table: SP a& Total fixed Total varjable…

A: In a market, different types of costs are related to each other as the total cost is the one that…

Q: a) Using the definition Q x AC = TC where Q = output, TC = the total cost of production and AC = the…

A: The average cost of production is calculated by dividing the total cost (TC) by the total output…

Q: 4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Dallas. The…

A: Quantity Total cost Marginal cost Fixed cost variable AVC ATC 0 120 --- 120 0 --- 1 200 80 120…

Q: Output Total Fixed Cost Total Variable Total Cost Average Fixed Average Variable Average Total…

A: Total cost is the sum of total fixed cost and total variable cost. Average cost is the per unit cost…

Q: SE THE GRAPH TO ANSWER THE FOLLOWING QUESTIONS: (IF REQUIRED, USE THE DISCREET NUMBER OF BARRELS).…

A: The maximizes profits where the MR= MC. The MC curve cuts the AVC cost curve at its minimum point.…

Q: A Managment instutute can operate for a maxium 12 hours .lectures are the outout of the institute…

A: A function affirms the connection between one info and one result, or many contributions to yield a…

Q: (Cups of tea per hour) Total Cost in Rs. 0 30 1 33 2 38 3 45 4 54 5 65 6 78 7 93 8…

A: Dear student, There are multiple subparts in this question. I am going to answer the first three…

Q: For graphing paper #1 Y axis = total fixed cost (TFC), total variable cost (TVC), and total…

A: Graphical analysis of cost of production is very important as it enables us to gain important…

Q: Complete the table as below: Where, TC= TOTAL COST, TFC = TOTAL FIXED COST, TVC= TOTAL VARIABLE…

A: The table requires various formulas which are listed below. TVC= TC- TFC Where TFC remains constant…

Q: A special shoe manufacturer ABC Co. has costs of production as follows and solve all the subparts:…

A: ABC Co. has a variable cost of $100. We can have the quantity produced and total variable cost in…

Q: e variable cost, and AC, the average cost. Complete the following cost table. (Enter numeric respc…

A: Fixed cost remains the same at each level of output. Hence, fixed cost corresponding to 2 units of…

Q: a) What is marginal cost? b) What is average variable cost? c) How much output is being produced?

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The…

A: Table is completed by using below formula is shown below. MC=Change in TCChange in Q FC=TC at Q=0…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Ike's bikers is a major manufacturer of bicycles. It currently produces bikes in one factory, and…

Q: Which of the following does not change with the level of output? O Total fixed cost O Marginal cost…

A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…

Q: How do you derive the marginal cost (MC) curve of a firm? b) How are average variable cost (AVC) and…

A: Marginal cost is the additional cost that is incurred in order to produce an additional unit of an…

Q: roduction, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the av…

A: The given table is completed as follows:

Q: Jane’s Juice Bar has the following cost schedules:a. Calculate average variable cost, average total…

A: The fixed cost is the cost that is associated with the fixed factors of production (factors that…

Q: ll in the remaining cells of the following table. Quantity (Pairs) Total Cost Marginal Cost Fixed…

A: Average total cost (ATC) is determined by dividing total cost by total quantity. Average…

Q: a) Complete the following table by filling in the fixed cost (FC), variable cost (VC), total cost…

A: Total Cost (TC) = Fixed cost (FC) + Variable cost (VC) or Variable cost (VC) = Total Cost (TC) -…

Question

Draw the marginal-cost and average-total-cost curves
for a typical firm. Explain why the curves have the
shapes that they do and why they intersect where
they do.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Concepts

VIEW

Step 2: Explanation with Diagram

VIEW

Step 3: Conclusion

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
How does fixed cost affect marginal cost? Why is this relationship important?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
In choosing a production technology, how will firms react if one input becomes relatively more expensive?
. Jane’s Juice Bar has the following cost schedules:Quantity Variable Cost Total Cost0 vats of juice $ 0 $ 301 10 402 25 553 45 754 70 1005 100 1306 135 165a. Calculate average variable cost, average total cost,and marginal cost for each quantity.b. Graph all three curves. What is the relationshipbetween the marginal-cost curve and theaverage-total-cost curve? Between the marginalcost curve and the average-variable-cost curve?Explain.
LUSC Method of producing that output The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000. None of these options are correct. APMP 100 80 AO MP 160 40 140 120 100 20 80 60 Labor 40 20 When the firm uses 60 units of labor, what is average total cost at this output? otal th ear- edule and erstanding of on between AVC ie mns 1 and 2 of Table 8.7. The r- n column 3 of Table 8.8. The rela- ws: Consider the 100 units of output riable cost of using 4 workers is found workers employed: ict to 0x4 ise DO00000000 Jog jopipaidjen Bue u pie abes ad
The Production Process and Costs 6. A firm's fixed costs for 0 units of output and its average total cost of produc- ing different output levels are summarized in the table below. Complete the table to find the fixed cost, variable cost, total cost, average fixed cost, aver- age variable cost, and marginal cost at all relevant levels of output. Q 0 100 200 300 400 500 600 FC $10,000 VC TC AFC AVC ATC $200 125 133 1/3 150 200 250 193 MC