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Production Cost Analysis: Calculating MC, AVC, ATC and Output of the Firm
Average Product=30 units
Average labor cost=wage rate=$60
Average variable cost =Average labor cost/Average Product=60/30=$2
c) How much output is being produced?
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Marginal & Average Cost Curve
Answer (C):
If average costs are increasing, the marginal cost curve is above the average cost curve. This is because the marginal cost curve cuts the average cost curve at the trough of the average cost curve.
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Average cost, Marginal cost, Average Variable Cost
123083 Average cost, Marginal cost, Average Variable Cost 1.
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Short-Run Average and Total Cost
158979 Short-Run Average and Total Cost True or False? Please explain your reasoning.
a. The short-run average total cost can never be less than the long-run average total cost.
b.
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Calculating average, marginal and variable costs
318316 Calculating average, marginal and variable costs Use the total cost (TC) schedule presented in the table below to calculate the average total cost, average variable cost, average fixed cost, and marginal cost when output (Q) is equal to 5.
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The marginal cost curve
The marginal cost curve intersects the average cost curve at its minimum value. When average total cost is declining (the average total cost curve is negatively sloped), marginal cost is less than average total cost.
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Cost Curves
Answer (C):
If the average costs are increasing, the marginal cost curves are above the average cost curve.
Answer (D):
No if marginal cost curves are increasing, the average cost curve can be above or below the marginal costs.
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costs
Total Cost = Fixed Cost + n*Average Variable Cost = 3,600 + 20*60 = R 4800
Therefore, Average Total Cost = 4800/20 = R 240.
e. Is average variable cost increasing, constant, or decreasing? What about average total cost? Explain your answer.
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average variable cost
see attachment
Calculate the average variable cost, average fixed cost, and average total cost at each output level.
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Discounting unlevered cash flows, cost of debt, WACC
b. adding the weighted average before tax cost of debt to the weighted average cost of equity.
c. adding the weighted average after tax cost of debt to the weighted average cost of equity.