The cost incurred for the variable factors is known as variable cost whereas the cost incurred for the fixed factors is known as fixed cost. Variable cost changes when level of output changes while the fixed cost is the cost that the firms are bound to pay even...
Is average fixed cost the same as marginal cost? If the marginal cost curve is below the average variable cost curve, then ___ A firm's cost curve is C = F + 10q - bq^2 + q^3, where b>0. a. For what values of b are cost, average cost, and average variable cost positive...
Which of the following most accurately describes the shape of the average fixed cost (AFC) curve The AFC curve: A. is always below the average variable cost curve. B. has the same shape as the average total cost curve. C. becomes flatter as output increases. 点击查看答案&解析手机看题 ...
Thisresultsinasupplycurvethatslopesupward.TheFirm’sObjective Theeconomicgoalofthefirmistomaximizeprofits.AFirm’sTotalRevenueandTotalCost TotalRevenue Theamountthatthefirmreceivesforthesaleofitsoutput.TotalCost Theamountthatthefirmpaystobuyinputs.AFirm’sProfit Profitisthefirm’stotalrevenueminusitstotalcost.P...
AverageTotalCostisthecostofproducinganygivenlevelofoutputdividedbythenumberofunitsproduced.Thismaybedividedintoaveragefixedcost(AFC)andaveragevariablecost(AVC).MarginalCostistheincreaseintotalcostsresultingfromincreasingoutputbyoneunit.Lawofdiminishingreturnsmeansthateventuallymarginalandaveragevariablecostswillrise.This...
(IP) imports are six times higher than its IP exports.19 As a result, China's 14 A value greater than 1.0 suggests the world is more exposed to China than to the economies of China, Japan, Germany, France, India, United Kingdom,...
Lecture_3_-_Theory_of_the_Firm THEORYOFTHEFIRM HowFirmsBehave:Costs,Revenues&ProfitMaximisation ASSUMPTIONS Assumption 1:MAXIMISEPROFITS Thereforeproduceatanoutputwhereprofitismaximised Assumption 2:MINIMISECOSTS Butcostsdifferbetweentheshortrunandthelongrun 2 INPUTS/OUTPUTS For...
EconomicEfficiency:productionofagivenamountofoutputatthelowestpossiblecost.Shortrunandlongrun –Twotypesofinputs •Fixedinput•Variableinput –Afixedinput:thelevelofusagecannotreadilybechanged.However,noinputiseverabsolutelyfixed–justinpracticalsense–Avariableinput:thelevelofusagemaybechangedquitereadily...
c. at any output level is equal to the vertical distance between the average total cost and average fixed cost curves d. intersects the average total cost curve at a high output level e. intersects the average total cost curve at its minimum firms' short-run average total cost curves...
Answer to: How do you find total cost, average fixed cost, total variable cost, and average variable cost, when the only thing that is given is...