Question
In: Economics
Where do the marginal cost curve and average total cost curve meet? At the minimum of...
Where do the marginal cost curve and average total cost curve meet?
| At the minimum of the MC curve. |
| At the minimum of the MR curve. |
| At the minimum of the ATC curve. |
| At the minimum of the AVC curv |
Solutions
Expert Solution
The relationship between Marginal cost and Average total cost curve is that the Marginal cost curve intersects the Average total cost curve from below at its minimum point
Option(C)
Rahul Sunny answered 2 years agoRelated Solutions
The marginal cost curve crosses the * 1 point a. average total cost curve at the...
The marginal cost curve crosses the *
1 point
a. average total cost curve at the
maximum of the average total cost curve.
b. average variable cost curve at the
minimum of the average variable cost curve.
c. total cost curve at the minimum of
the total cost curve.
d. average fixed cost curve at the
minimum of the average fixed cost curve.
The average variable cost curve and average total cost curve
tend to converge as output rises because...
If price exceeds the minimum of average total cost, then comparing marginal revenue to marginal cost...
If price exceeds the minimum of average total cost, then
comparing marginal revenue to marginal cost
(x) tells a firm the total amount of profit that it will
generate.
(y) indicates how much additional profit is generated by the last
unit of production.
(z) tells a firm whether it should increase output, decrease output
or remain at the present level of output.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and...
Why is it mathematically correct that the Marginal Cost curve crosses the average total cost curve...
Why is it mathematically correct that the Marginal Cost curve
crosses the average total cost curve at its lowest point? Show your
work using graphs
The MC (marginal cost) curve and the ATC (average total cost) curve intersect Group of answer...
The MC (marginal cost) curve and the ATC (average total cost)
curve intersect
Group of answer choices
at the MC curve's maximum point
at the ATC curve's maximum point
at the ATC curve's minimum point
at the MC curve's minimum point
In a price-taker market, each firm's short run supply curve is its marginal cost curve, above its minimum average total cost.
7) T/F In a price-taker market, each firm's short run supply
curve is its marginal cost curve, above its minimum average total
cost.8) T/F The limited liability of stockholders in the corporate
business structure makes it harder to raise equity capital.9) T/F In the year 2008, nearly three out of four business firms
in the United States were organized as proprietorships.10) T/F When demand is relatively price inelastic, price and
total revenue will change in the same direction.11) T/F As...
1. a. Draw a horizontal average cost curve for the monopolist. Where is the marginal cost...
1.
a. Draw a horizontal average cost curve for the monopolist.
Where is the marginal cost curve and how do you know?
b. Is the equilibrium in which there is one competitive industry
and one monopolistic industry efficient? Explain.
c. Now suppose the monopolist above can perfectly
price-discriminate. What is his marginal revenue curve?
Explain.
a. Explain why the marginal cost curve intersects the average total and variable cost curves at...
a. Explain why the marginal cost curve intersects the average
total and variable cost curves at their
respective minimum values:
b. At what point on the ATC will a perfectly competitive firm
always produce in the long run:
c. The supply curve for a perfectly competitive firm is the same
as one of the cost curves based on a specific criterion, state both
the curve and the criterion.
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its
product:
Q = 200 - 2P MR = 100 - Q TC = 5Q MC = 5
a) suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing level of
output?
b) suppose that a tax of $5 for each unit produced is imposed by
state government. What is the price...
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its product: Q
= 200 ; MR = 100-Q ; TC = 5Q ; MC = 5
a) Suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing level of
output?
b) Suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing...
A monopolist faces the following demand curve, marginal revenue, total cost curve and marginal cost curve...
A monopolist faces the following demand curve, marginal revenue,
total cost curve and marginal cost curve for its product: Q = 200 -
2P ; MR = 100 - Q ; TC = 5Q ; MC = 5
a) What level of output maximizes total revenue?. b) What is the
profit maximizing level of output?. c) What is the profit
maximizing price?. d) How much profit does the monopolist earn? e)
Suppose that a tax of $5 for each unit...
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