(i) Suppose a firm's short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input? (ii) Comment on the following statement: "Average cost includes both fixed and variable costs, whereas marginal cost only includes variable costs. Therefore, marginal cost is never greater than average cost."
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i) Suppose a firm's short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input?
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<br>The U-shape of the short-run average cost curve is the result of increasing marginal returns for small quantities of output ...
... short-run marginal cost curve and its total fixed cost curve? ... Fixed costs (FC) are costs that do not vary ...Marginal cost (MC) = change in total cost / change in ...
... quantities will still be just the change in variable costs. ... will not change, the average total cost (ATC) curve will shift up, and the marginal cost (MC) will ...
... variable cost increases] but the fixed costs will remain ... It will increase as the variable cost component of ...Marginal Cost: It will shift upwards as the labor ...
... 2. a) Why are short-run marginal cost curves expected to slope upward? b) If you know that average costs are increasing, is the marginal cost curve above or ...
... B) Why are short-run marginal cost curves expected to slope upward? C) If you know that average costs are increasing, is the marginal cost curve above or below ...
... Why doesn't the marginal cost curve also interest the average fixed cost curve at it's minimum point: Total output Costs TFC TVC AFC AVC ATC MC 0 $100 $100 1 ...
... average variable costs, average total costs, and marginal costs. ... why the ATC and MC curves are U ... 9. Explain why the short-run marginal-cost curve must intersect ...
... Draw the average and marginal costs curves as well as demand curve into the same ... How you can derive now the average cost and the marginal cost of production ...
