Marginal Cost and Cost of a Unit

Related BrainMass Solutions

• Marginal Cost

  Even if the wage rate per worker hour remains the same, the marginal unit will require more and more of worker-hours. Thus with marginal productivity of a factor goes on increasing, marginal cost will be increasing.

• Costs, definitions, marginal cost

  If there are diminishing returns the next unit of labor or capital will produce less output than the previous unit . Hence the marginal cost will be increasing and have a positive slope. C. False.

• Cost Curves

  122164 Cost Curves A) If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax? (ASSUME NO CHANGE IN THE AMOUNT OF SALES.)

• Marginal cost - Comparing Marginal and Average Concepts

  Marginal cost is, essentially, the cost of producing one more unit. For example, consider a factory that makes widgets. The company has overhead costs, material costs, and labor costs associated with the production of widgets.

• marginal cost

  232247 Marginal cost In the short run a firms total cost of producing the hundredth unit of output equal $10,000. If it produces one more unit its total costs will increase to $10,150. a. What is the marginal cost of the 101st unit of output?

• Relationship between total, average, and margin

  Average cost = Total Cost/Quantity. It means at the 1000 unit production level, how much, on average, does one unit cost. Average cost should be less than price, otherwise your firm will suffer from a loss. Marginal cost = d(TC)/dQ.

• profit maximization condition

  long run) Consider the scenario below: Variable cost of making a unit = $10 (which is also equal to Marginal cost for the sake of simplicity) Now, lets assume that price keeps reducing as we produce and sell more and more units - first unit

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• Marginal Product of Labor

  Marginal product of labor is 25, and that of raw materials is 4. a. The optimum bundle is obtained when the marginal cost of the last unit produced by either inputs is the same.

• Production Questions for Cost

  competitive firm faces a market price of $7 per unit and @ this price the upward-sloping portion of the firms marginal cost curve crosses its marginal revenue curve at an output level of 1,400 units, its average variable costs equal $6.50 per unit ,