If price exceeds the minimum of average variable cost, then comparing marginal revenue to marginal cost indicates how much additional profit is generated by the last unit of production and tells a firm whether it should increase output, decrease output or remain at the present level of output.
True
False
If the firm’s marginal cost is equal to its marginal revenue at the firm’s existing level of production, then the firm should maintain its current level of production to maximize profit.
True
False
Question text
A profit maximizing firm in a competitive market faces a price of $20 for its product. Its average variable cost is $15 and its average fixed cost is $8 at the quantity where marginal cost equals marginal revenue. In the short run, the firm will shut down and incur the total loss of its fixed costs.
True
False
A market is competitive if firms are price takers and goods offered for sale are essentially identical or largely the same for the firms.
true
False
In: Economics
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 |
In: Economics
An aircraft factory manufactures airplane engines. The unit cost C (the cost in dollars to make each airplane engine) depends on the number of engines made. If x engines are made, then the unit cost is given by the function C(x)=0.3x2-156x+37,629 .What is the minimum unit cost? Do not round your answer.
In: Advanced Math
Which of the following is not considered a holding cost? Interest Insurance Depreciation Opportunity cost Stock out cost
In: Operations Management
In: Accounting
| If the Total Variable Cost (TVC) curve is rising then: | |||||||||||||||||
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In: Economics
11) What is a fixed cost?
12) What is a variable cost?
13) Where does the marginal cost curve intersect the average total cost curve?
14) What will be the impact on the total product of labor curve of an improvement in technology?
15) According to the Law of Diminishing Returns, what happens to total output as more of a variable input is used with fixed resources?
In: Economics
"Find the retail cost of gasoline (per unit volume) in your area and find the cost of electricity for residential users in your area. (a) Compare the cost of energy (per MJ) from gasoline and from electricity (b) The efficiency of a gasoline automobile is about 20% and the efficiency of a battery electric vehicle is about 85%. Discuss the relative transportation costs for gasoline and electric vehicles."
In: Advanced Math
Which of the following statements about cost accounting systems is FALSE? A) The cost accounting system provides the cost data that managers use for decision making. B) The cost accounting system is the most fundamental component of a cost management system. C) A cost accounting system that provides accurate information is a key success factor for all types of organizations. D) Some types of organizations do not need cost accounting systems. E) none of the above
In: Accounting
Japanese companies are companies that apply Material Flow of Cost Accounting (MFCA) and this cost calculation method is then brought to Indonesia. Material Flow of Cost Accounting (MFCA) collaborates with ISO 14051. In connection with of MFCA to Indonesia, explain the MFCA starting from the historical process of MFCA, the definition of MFCA, the process of calculating MFCA, and the advantages if the companies using MFCA (using info graphic and explanation, and using example).
In: Accounting