Given linear average cost curve,prove that corresponding marginal cost curve must have the same vertical int?
Q. Given a linear average cost curve, prove that corresponding marginal cost curve must have the same vertical intercept but will twice as steep as the average cost curve absolutely lost..please help.
Asked by Jane - Sat Mar 28 05:16:26 2009 - - 1 Answers - 0 Comments
A. Let x be the units of output, c the intercept (or fixed cost), m be the gradient and f(x) be the average cost function, then: f(x) = mx + c then Total Cost, g(x) = x(mx + c) = mx^2 + cx so Marginal Cost, h(x) = g'(x) = 2mx + c The slope of the MC function is therefore twice that of AC and their intercepts are the same.
Answered by Faz - Sat Mar 28 05:30:02 2009
Q. Given a linear average cost curve, prove that corresponding marginal cost curve must have the same vertical intercept but will twice as steep as the average cost curve absolutely lost..please help.
Asked by Jane - Sat Mar 28 05:16:26 2009 - - 1 Answers - 0 Comments
A. Let x be the units of output, c the intercept (or fixed cost), m be the gradient and f(x) be the average cost function, then: f(x) = mx + c then Total Cost, g(x) = x(mx + c) = mx^2 + cx so Marginal Cost, h(x) = g'(x) = 2mx + c The slope of the MC function is therefore twice that of AC and their intercepts are the same.
Answered by Faz - Sat Mar 28 05:30:02 2009
Economics help with linear demand curve + constant marginal cost curve?
Q. I am stuck on this problem, would be amazing if can get some help. Question : Assume that a monopoly firm has a linear demand curve and a constant marginal cost curve. How would you be graphing this firm's optimal output choice before + after a per unit excise tax is placed on the output. Would also the new equilibrium price rise by as much as the tax?
Asked by Plain - Wed Jul 8 22:48:35 2009 - - 2 Answers - 0 Comments
A. optimization rule is always marginal benefit equals marginal cost. marginal benefit is represented by the demand curve. this said, the optimal output is where the demand curve meets the marginal cost. the equilibrium price will rise as much as the tax. marginal cost will have a parallel upward shift, and the optimal price and quantity will again be determined by MB=MC.
Answered by grrdsantana - Thu Jul 9 01:21:22 2009
Q. I am stuck on this problem, would be amazing if can get some help. Question : Assume that a monopoly firm has a linear demand curve and a constant marginal cost curve. How would you be graphing this firm's optimal output choice before + after a per unit excise tax is placed on the output. Would also the new equilibrium price rise by as much as the tax?
Asked by Plain - Wed Jul 8 22:48:35 2009 - - 2 Answers - 0 Comments
A. optimization rule is always marginal benefit equals marginal cost. marginal benefit is represented by the demand curve. this said, the optimal output is where the demand curve meets the marginal cost. the equilibrium price will rise as much as the tax. marginal cost will have a parallel upward shift, and the optimal price and quantity will again be determined by MB=MC.
Answered by grrdsantana - Thu Jul 9 01:21:22 2009
If the marginal cost curve is below the average variable cost curve, then?
Q. A) average variable cost is increasing. B) marginal cost is increasing. C) average variable cost is decreasing. D) average variable cost is constant.
Asked by ST - Mon Mar 8 20:49:29 2010 - - 1 Answers - 0 Comments
A. The answer is C. The MC curve will cut the average variable cost curve when it reachs the minimum point. From that point on, the AVC will be increasing.
Answered by Anjaree - Mon Mar 8 21:37:45 2010
Q. A) average variable cost is increasing. B) marginal cost is increasing. C) average variable cost is decreasing. D) average variable cost is constant.
Asked by ST - Mon Mar 8 20:49:29 2010 - - 1 Answers - 0 Comments
A. The answer is C. The MC curve will cut the average variable cost curve when it reachs the minimum point. From that point on, the AVC will be increasing.
Answered by Anjaree - Mon Mar 8 21:37:45 2010
Marginal Cost Curve in the Short Run?
Q. Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases. If we are at an output where marginal cost is decreasing, then: a) Marginal product must be increasing. b) Average variable cost must be decreasing c) Average total cost must be increasing d) both a and b are correct.
Asked by Guesser - Sun Jul 27 14:21:28 2008 - - 1 Answers - 0 Comments
A. d) both a and b are correct. Marginal product is the inverse of marginal cost, and if marginal cost is decreasing, each good costs less to make, so average variable cost must also be decreasing
Answered by Danajaan - Sun Jul 27 15:20:46 2008
Q. Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases. If we are at an output where marginal cost is decreasing, then: a) Marginal product must be increasing. b) Average variable cost must be decreasing c) Average total cost must be increasing d) both a and b are correct.
Asked by Guesser - Sun Jul 27 14:21:28 2008 - - 1 Answers - 0 Comments
A. d) both a and b are correct. Marginal product is the inverse of marginal cost, and if marginal cost is decreasing, each good costs less to make, so average variable cost must also be decreasing
Answered by Danajaan - Sun Jul 27 15:20:46 2008
In economics why does a marginal cost curve intersect an average total cost curve at its lowest point?
Q. In economics why does a marginal cost curve intersect an average total cost curve at its lowest point?
Asked by nomadman14 - Wed Mar 14 17:09:39 2007 - - 1 Answers - 0 Comments
A. When marginal cost is less than average total cost, then the cost of producing an additional widget is less than the average cost of the widgets produced so far. This means by producing an extra widget, we are lowering the average cost of a widget. Therefore if MC < ATC, ATC must be decreasing. The exact opposite holds, ie. if MC > ATC, ATC must be increasing. Thus ATC is decreasing while MC < ATC, and increasing when MC > ATC. This means when MC = ATC, ATC must be at a minimum (because ATC was decreasing up to that point and increasing after that point).
Answered by Bill Lumbergh - Fri Mar 16 03:10:42 2007
Q. In economics why does a marginal cost curve intersect an average total cost curve at its lowest point?
Asked by nomadman14 - Wed Mar 14 17:09:39 2007 - - 1 Answers - 0 Comments
A. When marginal cost is less than average total cost, then the cost of producing an additional widget is less than the average cost of the widgets produced so far. This means by producing an extra widget, we are lowering the average cost of a widget. Therefore if MC < ATC, ATC must be decreasing. The exact opposite holds, ie. if MC > ATC, ATC must be increasing. Thus ATC is decreasing while MC < ATC, and increasing when MC > ATC. This means when MC = ATC, ATC must be at a minimum (because ATC was decreasing up to that point and increasing after that point).
Answered by Bill Lumbergh - Fri Mar 16 03:10:42 2007
Why does the average total cost curve always start above the marginal cost curve in the short run?
Q. Why does the average total cost curve always start above the marginal cost curve in the short run?
Asked by waqaracc - Sat Apr 22 04:35:20 2006 - - 1 Answers - 0 Comments
A. I would not stake my life on this answer but... I believe it is because when you are viewing a set of cost curves, you are looking at the trade off between price on the vertical axis versus quantity on the horizontal axis. Average total cost curve represents total cost spread out among units. The marginal cost curves represents the cost of one more unit. This means that the average total cost of zero goods would be some value(depends on the cost). The marginal cost of zero units would be zero. You can't have a higher cost for one more unit at zero. You can have fixed costs at zero such as fixed costs. Average total cost is variable added to fixed. Just a thought, I'm Joe
Answered by joeatunt - Sat Apr 22 04:48:15 2006
Q. Why does the average total cost curve always start above the marginal cost curve in the short run?
Asked by waqaracc - Sat Apr 22 04:35:20 2006 - - 1 Answers - 0 Comments
A. I would not stake my life on this answer but... I believe it is because when you are viewing a set of cost curves, you are looking at the trade off between price on the vertical axis versus quantity on the horizontal axis. Average total cost curve represents total cost spread out among units. The marginal cost curves represents the cost of one more unit. This means that the average total cost of zero goods would be some value(depends on the cost). The marginal cost of zero units would be zero. You can't have a higher cost for one more unit at zero. You can have fixed costs at zero such as fixed costs. Average total cost is variable added to fixed. Just a thought, I'm Joe
Answered by joeatunt - Sat Apr 22 04:48:15 2006
Is Average Cost curve = Supply Curve or Marginal Cost ? Explain please?
Q. I'm studying economics & business. One of the things that puzzle me is that at first our Prof. told us that Average Revenue = P and that the Average Revenue Curve is the Demand Curve He told us that the Marginal Cost Curve is the Supply curve. Now, he says that he got confused and it really is the Average Cost (ATC) because it's the minimum of which the factors of production cost to be employed Can you please elaborate as much as you can which is right and wrong ?
Asked by Ahmed F - Thu May 8 16:36:29 2008 - - 1 Answers - 0 Comments
A. How much can a company sells a particular product on average is the demand your products have in the market. Assuming that this is a 'trading' activities than the average cost of your supplier is your supply curve.
Answered by adiwsusanto - Fri May 9 02:10:00 2008
Q. I'm studying economics & business. One of the things that puzzle me is that at first our Prof. told us that Average Revenue = P and that the Average Revenue Curve is the Demand Curve He told us that the Marginal Cost Curve is the Supply curve. Now, he says that he got confused and it really is the Average Cost (ATC) because it's the minimum of which the factors of production cost to be employed Can you please elaborate as much as you can which is right and wrong ?
Asked by Ahmed F - Thu May 8 16:36:29 2008 - - 1 Answers - 0 Comments
A. How much can a company sells a particular product on average is the demand your products have in the market. Assuming that this is a 'trading' activities than the average cost of your supplier is your supply curve.
Answered by adiwsusanto - Fri May 9 02:10:00 2008
Marginal cost curve?
Q. Why is the marginal cost curve U-Shaped? I know that initially marginal cost falls, and eventually increases again, but I can't figure out why this is. If anyone could help, I'd be grateful.
Asked by Mr Economist - Thu Apr 3 18:34:41 2008 - - 1 Answers - 0 Comments
A. This is because after the initial reduction in marginal cost, the benefits of efficieny and specialization are eventually exhausted. As the result, diminishing returns set in and begin to show up on the marginal cost curve...hence the curved appearance. You could think it of in this way: That the lowest marginal cost shown on the marginal cost curve is comparable to 100% efficiency, or very close to it. After that, as you add to your marginal cost by hiring additional workers, for example, in an effort to produce more per day, you can accomplish the higher output, but at a less efficient ratio between cost and production output. I hope this helps. Regards, The Rambler
Answered by Rambler - Thu Apr 3 18:56:30 2008
Q. Why is the marginal cost curve U-Shaped? I know that initially marginal cost falls, and eventually increases again, but I can't figure out why this is. If anyone could help, I'd be grateful.
Asked by Mr Economist - Thu Apr 3 18:34:41 2008 - - 1 Answers - 0 Comments
A. This is because after the initial reduction in marginal cost, the benefits of efficieny and specialization are eventually exhausted. As the result, diminishing returns set in and begin to show up on the marginal cost curve...hence the curved appearance. You could think it of in this way: That the lowest marginal cost shown on the marginal cost curve is comparable to 100% efficiency, or very close to it. After that, as you add to your marginal cost by hiring additional workers, for example, in an effort to produce more per day, you can accomplish the higher output, but at a less efficient ratio between cost and production output. I hope this helps. Regards, The Rambler
Answered by Rambler - Thu Apr 3 18:56:30 2008
why will a perfectly competitive firm will always produce in the upward segment of the marginal cost curve?
Q. could you also explain the graph?
Asked by Stephen L - Mon Mar 12 16:17:34 2007 - - 3 Answers - 0 Comments
A. The marginal cost curve slopes downward, reaches a minimum, then goes back up. If a firm produces where it crosses marginal revenue and is sloping downward, it will produce only units that cost more to make than they earn in revenue. The firm will lose money and eventually go out of business. When it produces at the point where marginal cost is going up, it is able to turn a profit.
Answered by theeconomicsguy - Mon Mar 12 16:21:39 2007
Q. could you also explain the graph?
Asked by Stephen L - Mon Mar 12 16:17:34 2007 - - 3 Answers - 0 Comments
A. The marginal cost curve slopes downward, reaches a minimum, then goes back up. If a firm produces where it crosses marginal revenue and is sloping downward, it will produce only units that cost more to make than they earn in revenue. The firm will lose money and eventually go out of business. When it produces at the point where marginal cost is going up, it is able to turn a profit.
Answered by theeconomicsguy - Mon Mar 12 16:21:39 2007
drawing a marginal cost curve for a hypothetical economics exercise- why doesn't mine look right?!?
Q. Hello please could you help me draw a marginal cost curve: i have a hypothetical question where the variable cost is $1 up to x=50, then the variable cost increases to $2 per unit, until x=100... the fixed cost stays the same throughout ($20). my attempt is such that my marginal cost curve looks like a straight horizontal line at F(x) = 1 up to x=50 then jumps up a unit to f(x) = 2... so essentially it looks like this: ___--- a) That doesn't seem right to me - have I done something terribly wrong?! Shouldn't i be able to write the whole thing in just one function, and shouldn't it be a nice smooth curve? b) on the y axis of a marginal cost curve, should it be Cost (per unit) or Cost (total) ? I really appreciate your help :-)
Asked by UltraViolet - Sun Nov 30 08:06:59 2008 - - 1 Answers - 0 Comments
A. Discontinuous Jump is normal given your conditions. You are asked for marginal cost curve, and that is what you drew. If you draw a total curve, it will be continuous, but will have a kink at x=50 where it switches from slope of 1 to 2.
Answered by Cthulhu fhtagn! - Sun Nov 30 16:43:24 2008
Q. Hello please could you help me draw a marginal cost curve: i have a hypothetical question where the variable cost is $1 up to x=50, then the variable cost increases to $2 per unit, until x=100... the fixed cost stays the same throughout ($20). my attempt is such that my marginal cost curve looks like a straight horizontal line at F(x) = 1 up to x=50 then jumps up a unit to f(x) = 2... so essentially it looks like this: ___--- a) That doesn't seem right to me - have I done something terribly wrong?! Shouldn't i be able to write the whole thing in just one function, and shouldn't it be a nice smooth curve? b) on the y axis of a marginal cost curve, should it be Cost (per unit) or Cost (total) ? I really appreciate your help :-)
Asked by UltraViolet - Sun Nov 30 08:06:59 2008 - - 1 Answers - 0 Comments
A. Discontinuous Jump is normal given your conditions. You are asked for marginal cost curve, and that is what you drew. If you draw a total curve, it will be continuous, but will have a kink at x=50 where it switches from slope of 1 to 2.
Answered by Cthulhu fhtagn! - Sun Nov 30 16:43:24 2008
The marginal revenue curve of a monopoly crosses its marginal cost and average total cost curve at $30 per uni?
Q. The marginal revenue curve of a monopoly crosses its marginal cost and average total cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for output is $40 per unit. If it produces this output, the firm s average total cost is $43 per unit, and it s average fixed cost is $8 per unit, what is the producer s profit maximizing (loss minimizing) output level? What are the firm s economic profits (or economic losses)?
Asked by grown_n_sexxy76 - Tue Oct 6 21:14:40 2009 - - 1 Answers - 0 Comments
A. The firm operates in a loss of $3 a unit. But it won't shut down the operation since the revenue is still above the fixed cost.The profit maximization is at $30 and 2 mill.
Answered by Goofer,your handsome Ninja - Tue Oct 6 21:34:05 2009
Q. The marginal revenue curve of a monopoly crosses its marginal cost and average total cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for output is $40 per unit. If it produces this output, the firm s average total cost is $43 per unit, and it s average fixed cost is $8 per unit, what is the producer s profit maximizing (loss minimizing) output level? What are the firm s economic profits (or economic losses)?
Asked by grown_n_sexxy76 - Tue Oct 6 21:14:40 2009 - - 1 Answers - 0 Comments
A. The firm operates in a loss of $3 a unit. But it won't shut down the operation since the revenue is still above the fixed cost.The profit maximization is at $30 and 2 mill.
Answered by Goofer,your handsome Ninja - Tue Oct 6 21:34:05 2009
if i only have selling price, total revenue and Marginal revenue how would i get Marginal cost curve?
Q. if i only have selling price, total revenue and Marginal revenue how would i get Marginal cost curve?
Asked by Jennifer - Mon Nov 23 19:41:38 2009 - - 1 Answers - 0 Comments
A. the profit maximizing price is always where marginal revenue equals marginal cost. If we assume that the firm is operating at the profit-max location then the selling price is is the marginal cost at that quantity. how you determine the mc curve from there is a bit tricky. if the cost curve is linear the mc at all quantities will be equal to this selling price.
Answered by Greg - Tue Nov 24 04:18:13 2009
Q. if i only have selling price, total revenue and Marginal revenue how would i get Marginal cost curve?
Asked by Jennifer - Mon Nov 23 19:41:38 2009 - - 1 Answers - 0 Comments
A. the profit maximizing price is always where marginal revenue equals marginal cost. If we assume that the firm is operating at the profit-max location then the selling price is is the marginal cost at that quantity. how you determine the mc curve from there is a bit tricky. if the cost curve is linear the mc at all quantities will be equal to this selling price.
Answered by Greg - Tue Nov 24 04:18:13 2009
using a marginal cost curve, how do you calculate profit-maximizing short-run supply?
Q. using a marginal cost curve, how do you calculate profit-maximizing short-run supply?
Asked by redgirl27 - Thu Jul 20 16:01:20 2006 - - 1 Answers - 0 Comments
A. You don't. Supply is a function, so you can't calculate it. The quantity supplied, however, can be computed based on the MC = MR condition. Profit-maximizing quantity supplied is that at which MC equals MR.
Answered by NC - Thu Jul 20 17:05:39 2006
Q. using a marginal cost curve, how do you calculate profit-maximizing short-run supply?
Asked by redgirl27 - Thu Jul 20 16:01:20 2006 - - 1 Answers - 0 Comments
A. You don't. Supply is a function, so you can't calculate it. The quantity supplied, however, can be computed based on the MC = MR condition. Profit-maximizing quantity supplied is that at which MC equals MR.
Answered by NC - Thu Jul 20 17:05:39 2006
I am having trouble with Marginal Cost curves in economics for perfect competition, help?
Q. I do not understand how marginal cost is equal to the short run short run average total cost in a perfectly competitive firm. The book is here, but I just don't know! help?
Asked by YoItsTravo - Fri Oct 9 21:45:51 2009 - - 1 Answers - 0 Comments
A. there is no relationship between average and marginal cost; u can read introduction to economics textbook; that will be easy for u to understand
Answered by Victoria Cool - Fri Oct 9 23:54:21 2009
Q. I do not understand how marginal cost is equal to the short run short run average total cost in a perfectly competitive firm. The book is here, but I just don't know! help?
Asked by YoItsTravo - Fri Oct 9 21:45:51 2009 - - 1 Answers - 0 Comments
A. there is no relationship between average and marginal cost; u can read introduction to economics textbook; that will be easy for u to understand
Answered by Victoria Cool - Fri Oct 9 23:54:21 2009
How do I graph total cost curves that illustrate diminishing marginal returns and constant marginal costs?
Q. Can anyone describe to me, or tell me a website that can illustrate this two part questions: Draw two total cost curves with their corresponding total variable and fixed cost curves that illustrate: Diminishing marginal returns (graph A) and constant marginal costs (graph B).
Asked by Jason E - Sun Nov 22 10:14:32 2009 - - 1 Answers - 0 Comments
A. Graph B is easy, the MC curve is just a horizontal line. This means that the AVC is also a horizontal line, parallel to the MC curve. Also, ATC curve starts above the MC curve and decreases, but it will never cross the MC curve, i.e., treat the MC curve as a horizontal asymptote for the ATC curve. For graph A Remember that if MCAC, then AC goes up in graph A, the MC curve starts going down, then eventually goes up. The ATC curve does the same thing, and the important thing to remember is that the MC curve intersects the ATC curve at the minimum ATC. Here's a pic, ignore the MR curve
Answered by Anewid - Sun Nov 22 11:54:15 2009
Q. Can anyone describe to me, or tell me a website that can illustrate this two part questions: Draw two total cost curves with their corresponding total variable and fixed cost curves that illustrate: Diminishing marginal returns (graph A) and constant marginal costs (graph B).
Asked by Jason E - Sun Nov 22 10:14:32 2009 - - 1 Answers - 0 Comments
A. Graph B is easy, the MC curve is just a horizontal line. This means that the AVC is also a horizontal line, parallel to the MC curve. Also, ATC curve starts above the MC curve and decreases, but it will never cross the MC curve, i.e., treat the MC curve as a horizontal asymptote for the ATC curve. For graph A Remember that if MC
Answered by Anewid - Sun Nov 22 11:54:15 2009
how does the marginal cost of monopolist firm look like?
Q. is it a linear line from the origin?.. is it different from the marginal cost curve of competitive firms?
Asked by serena_lee1988 - Tue Oct 14 11:26:27 2008 - - 1 Answers - 0 Comments
A. The cost curve for all firms are identical. The only "firm" that doesn't have cost curves the same is a natural monopoly. A natural monopoly has a ATC curve that is downward slopping, as apposed to the U shaped ATC curve for all other firms.
Answered by chris n - Tue Oct 14 12:56:00 2008
Q. is it a linear line from the origin?.. is it different from the marginal cost curve of competitive firms?
Asked by serena_lee1988 - Tue Oct 14 11:26:27 2008 - - 1 Answers - 0 Comments
A. The cost curve for all firms are identical. The only "firm" that doesn't have cost curves the same is a natural monopoly. A natural monopoly has a ATC curve that is downward slopping, as apposed to the U shaped ATC curve for all other firms.
Answered by chris n - Tue Oct 14 12:56:00 2008
the marginal cost curve intersects both average cost curves (atc and avc) at their minimum points. why?
Q. Ap economics
Asked by jdrgearup - Mon Jan 15 20:22:45 2007 - - 1 Answers - 0 Comments
A. Marginal cost is the cost of adding one additional unit of labor. ATC is the total cost divided by each unit of labor. If you add a unit of labor, and marginal cost decreases it will pull the average down. If you add an additional unit of labor and the marginal cost increases, then the average will be pulled up. This law is true for everything, not only economics and it is easier to think of on different terms. Lets use grade point average as an example. Lets say you get a A on your first test in a class. Your average grade is a A. Then your next grade is a B, your average will be pulled down. If you get a C, your average will then be pulled down further. Eventually your marginal grade will be equal to the average grade, at the… [cont.]
Answered by elkabong2500 - Mon Jan 15 21:13:21 2007
Q. Ap economics
Asked by jdrgearup - Mon Jan 15 20:22:45 2007 - - 1 Answers - 0 Comments
A. Marginal cost is the cost of adding one additional unit of labor. ATC is the total cost divided by each unit of labor. If you add a unit of labor, and marginal cost decreases it will pull the average down. If you add an additional unit of labor and the marginal cost increases, then the average will be pulled up. This law is true for everything, not only economics and it is easier to think of on different terms. Lets use grade point average as an example. Lets say you get a A on your first test in a class. Your average grade is a A. Then your next grade is a B, your average will be pulled down. If you get a C, your average will then be pulled down further. Eventually your marginal grade will be equal to the average grade, at the… [cont.]
Answered by elkabong2500 - Mon Jan 15 21:13:21 2007
how each of the following events will affect the average and marginal cost curves of a firm?
Q. a) an increase in labour rate; b) a decrease in lease payments for a facility; c) stricter environmental regulation requiring installation of scrubbers on smokestacks; d) an increase in cost of utilities; e) an increase in learning on the part of labour.
Asked by Akesha E - Fri Nov 13 10:50:32 2009 - - 1 Answers - 0 Comments
A. a) This will increase costs at all levels of production, therefore increasing the average cost (upward shift in the average cost curve); because labor costs vary with the level of production it will also increase marginal costs (upward shift in the marginal cost curve). b) This will decrease costs at all levels of production, therefore decreasing the average cost (downward shift in the average cost curve); because it represents a fixed cost, there will be no change in the marginal cost curve. c) This will increase total costs at all levels of production, therefore increasing the average cost (upward shift in the average cost curve); because it represents a fixed cost, there will be no change in the marginal cost curve. d) This will… [cont.]
Answered by jerry w - Fri Nov 13 11:26:23 2009
Q. a) an increase in labour rate; b) a decrease in lease payments for a facility; c) stricter environmental regulation requiring installation of scrubbers on smokestacks; d) an increase in cost of utilities; e) an increase in learning on the part of labour.
Asked by Akesha E - Fri Nov 13 10:50:32 2009 - - 1 Answers - 0 Comments
A. a) This will increase costs at all levels of production, therefore increasing the average cost (upward shift in the average cost curve); because labor costs vary with the level of production it will also increase marginal costs (upward shift in the marginal cost curve). b) This will decrease costs at all levels of production, therefore decreasing the average cost (downward shift in the average cost curve); because it represents a fixed cost, there will be no change in the marginal cost curve. c) This will increase total costs at all levels of production, therefore increasing the average cost (upward shift in the average cost curve); because it represents a fixed cost, there will be no change in the marginal cost curve. d) This will… [cont.]
Answered by jerry w - Fri Nov 13 11:26:23 2009
what are the relationship between marginal cost and supply curve for the purely competitive firm?
Q. what are the relationship between marginal cost and supply curve for the purely competitive firm?
Asked by Aarohian P - Mon Mar 3 16:16:28 2008 - - 1 Answers - 0 Comments
A. In a perfectly competitive firm, the amount they will supply is the quantity they can produce where marginal cost = price. So, it will be the same curve.
Answered by zucca - Fri Mar 7 00:37:49 2008
Q. what are the relationship between marginal cost and supply curve for the purely competitive firm?
Asked by Aarohian P - Mon Mar 3 16:16:28 2008 - - 1 Answers - 0 Comments
A. In a perfectly competitive firm, the amount they will supply is the quantity they can produce where marginal cost = price. So, it will be the same curve.
Answered by zucca - Fri Mar 7 00:37:49 2008
Figure 13.1 shows a monopolist's demand curve. If marginal cost were $1, this monopolist could maximize its pr
Q. Figure 13.1 shows a monopolist's demand curve. If marginal cost were $1, this monopolist could maximize its profits by producing ___ units of output and by charging a price of ___.
Asked by rimount - Sat Apr 8 21:34:53 2006 - - 1 Answers - 0 Comments
A. 1. I don't see Figure 13.1. 2. You should do your own homework!
Answered by Crojack - Sat Apr 8 21:58:34 2006
Q. Figure 13.1 shows a monopolist's demand curve. If marginal cost were $1, this monopolist could maximize its profits by producing ___ units of output and by charging a price of ___.
Asked by rimount - Sat Apr 8 21:34:53 2006 - - 1 Answers - 0 Comments
A. 1. I don't see Figure 13.1. 2. You should do your own homework!
Answered by Crojack - Sat Apr 8 21:58:34 2006
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Sun, 23 Nov 2008 10:26:31 GM
The . curve. has three relatively wide blocks, each representing an unconventional source of liquid. The combined future volumes of conventional petroleum, heavy oil, oil sands and oil shale total 29.9 trillion BOE. . ... Even conventional fields have different characteristics, with differing . marginal. costs of extraction. After a well peaks, the . marginal cost. of extraction increases because of the diminishing pressure, leading to more energy being needed to sustain (a ...
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