It is evident from the graph above that the average total cost curve initially falls, bottoms out around 18 units and then rises. It falls because as the output increase, the fixed cost is spread over more and more units. But the effect of this reduction progressively fades away because ...
andthenrises.GraphingTheLongRunAverageTotalCostCurveWhenwegraphthelongrunATC,wegraphtheminimumpointofallofthevariousshortrunATC’S.GraphingTheLongRunAverageTotalCostCurveThelongrunaveragetotalcostcurveturnsouttobeu-shaped.ShapeOfTheLongRunAverageTotalCostCurveWhyisthelongrunaveragetotalcostcurveinitiallydownwards...
The marginal cost curve intersects the average total cost curve exactly at the bottom of the average cost curve—which occurs at a quantity of 72 and cost of $6.60 in Figure 1. The reason why the intersection occurs at this point is built into the economic meaning of marginal and average ...
The graph of two long run average total cost (LRATC) curves for a typical company appears below. Based on this graph, which of the following statements is least accurate?A. The ideal plant size is indicated by point M.B. The use of improved technology may have caused the company to move...
What is the meaning of average total cost? The average total cost is the total costs (both fixed costs and variable costs) divided by the total quantity produced. It is used to determine the breakeven price, which is the minimum price that if used, the company will have no gains and no...
Related Lessons Related Courses Transaction Costs in Economics | Theory, Types & Examples Product & Cost Curves | Definition, Graph & Uses Marginal Product Definition, Types & Examples Using the Total Cost Curve to Make Production Decisions in the Short-Run Start...
The average total cost is the ratio of total cost and the total output produced by a firm. Marginal cost is the addition to the total cost when one extra unit of output is produced. The cost curves can be a horizontal, straight line or a U-shaped curve depending on whether...
We can convert this total cost function to a function for average variable cost as follows:AVC TC FCQAVC 0.1Q3 2Q260Q200 200QAVC 0.1Q2 2Q60If we plot the average variable cost function, we get a U-shaped cost-curve shown below:
Marginal revenue is calculated as the ratio of the change in the total revenue to the change in total output quantity. As a result, the cost of a single additional item sold equals marginal revenue. Any advantages gained from adding the extra unit of activity are marginal. One example is wh...
B解析:由题干graph,IQ,bell curve定位到第二个小标题下第三段第二句When placed on a graph, the IQ test scores... a bell curve, with most people scoring in the average range. (当很多人的智商测试分数被做成表格的时候,会呈现一个钟形的曲线,大部分人的分数位于中等区域。)而其前一句指出IQ tests...