Question
In: Economics
Marginal cost, MC, and average total cost, ATC, become equal when MC is at its minimum...
Marginal cost, MC, and average total cost, ATC, become equal when MC is at its minimum point. True or False
Solutions
Expert Solution
False
marginal cost intersects ATC when ATC is at minimum, not when MC is at minimum
Then MC>ATC then ATC increases
When MC<ATC then ATC decreases
and MC=ATC when ATC is at minimum
Rahul Sunny answered 2 years agoRelated Solutions
Question 2 Draw the marginal cost (MC), average variable cost (AVC) and average total cost (ATC)...
Question 2
Draw the marginal cost (MC), average variable cost (AVC) and
average total cost (ATC) curves for a typical firm in a diagram,
and briefly explain the relationship between:
a. AVC and ATC.
b. MC and ATC.
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten,...
The table below shows
the weekly marginal cost (MC) and average total cost (ATC) for
Smitten, a perfectly competitive firm that produces children’s
mittens in a competitive market.
Smitten's
Production Costs
Quantity (pairs of mittens)
Marginal Cost (dollars)
Average Total Cost (dollars)
20
$1.60
$1.25
25
2.00
1.40
30
2.45
1.58
35
3.55
1.86
40
4.00
2.13
45
5.50
2.50
50
6.00
2.85
55
8.50
3.36
Instructions: In part a, enter your answer as a
whole number. In parts b–d,...
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
8. The table below shows the weekly marginal cost (MC) and average total cost (ATC) for...
8. The table below shows the weekly marginal cost (MC) and
average total cost (ATC) for Buddies, a perfectly competitive firm
that produces novelty ear buds in a competitive market. The market
price of ear buds is $6.00 per pair.
Quantity of Ear buds
MC ($)
ATC ($)
5
-
9
10
2
5.5
15
2.44
4.48
20
3.56
4.25
25
4.5
4.3
30
5.02
4.42
35
5.96
4.64
40
8.56
5.13
Instructions: In part a, enter your answer as...
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten,...
The table below shows the weekly marginal cost (MC) and average
total cost (ATC) for Smitten, a perfectly competitive firm that
produces children’s mittens in a competitive market.
Smitten's Production Costs
Quantity (pairs of mittens)
Marginal Cost (dollars)
Average Total Cost (dollars)
20
$1.60
$1.25
25
2.00
1.40
30
2.45
1.58
35
3.55
1.86
40
4.00
2.13
45
5.50
2.50
50
6.00
2.85
55
8.50
3.36
Instructions: In part a, enter your answer as a
whole number. In parts b–d,...
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten,...
The table below shows the weekly marginal cost (MC) and average
total cost (ATC) for Smitten, a perfectly competitive firm that
produces children’s mittens in a competitive market.
Smitten's Production Costs
Quantity (pairs of mittens)
Marginal Cost (dollars)
Average Total Cost (dollars)
10
$1.60
$5.00
15
2.00
4.00
20
2.45
3.61
25
3.55
3.60
30
4.00
3.67
35
5.50
3.93
40
6.00
4.19
45
8.50
4.67
Instructions: In part a, enter your answer as a
whole number. In parts b–d,...
1. What is the relationship between marginal cost (MC) and average total cost (ATC)? 2. What...
1. What is the relationship between marginal cost (MC) and
average total cost (ATC)?
2. What is the difference between positive and normative
statements? Which do economists generally consider the more
persuasive statement type, and why?
3. What are the conditions needed for the Supply and Demand
model to hold?
4. What is the difference between Quantity Demanded (Q_D) and
Demand (D)?
Using a marginal cost (MC), average variable costs (AVC), and average total costs (ATC) curves, graph...
Using a marginal cost (MC), average variable costs (AVC), and
average total costs (ATC) curves, graph the break-even point and
shutdown point for a firm. Explain why these two points are key in
an entrepreneur’s decision making in the short-run or long-run.
The graph below shows a particular firm's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves
The graph below shows a particular firm's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves, where the market is competitive. Suppose that a new management team is brought in and that this team is initially less concerned about maximizing profits than it is simply about making a profit. What range of production quantities will allow the firm to operate while earning a profit?Give your answer by dragging the Qmin to Qmax lines into their correct positions. The output will...
A monopolist can produce at a constant average and marginal cost of ATC = MC =...
A monopolist can produce at a constant average and
marginal cost of ATC = MC = $5. It faces a market demand curve
given by Q = 53 - P.
5. Suppose there are N firms in the industry, all with
the same constant MC = $5. Find the Cournot equilibrium. How much
will each firm produce, what will be the market price, and how much
profit will each firm earn? Also show that as N becomes large, the
market...
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