Average total cost is
a. the change in cost divided by the change in output
b. total cost divided by output
c. the change in output divided by the change in costs
d. total cost times output

my answer is A

when an increase in the firm's output reduces its long run average cost, it experiences
a. economic of scale
b. diseconomies of scale
c. constant returns to scale
d. variable returns to scale

my answer is C

when diseconomies of scale outweigh economies of scale the
a. long run average cost curve rises
b. marginal cost curve declines
c. average total cost curve declines
d. average variable cost curve declines

I think it is B

Solution Preview

Average total cost is
b. total cost divided by output (correct). ...

Average Fixed Cost. Answers the question: Describe the relationships among average fixed costs, average variable costs, average total costs, and marginal costs. ...

... c. What is the average total cost when output is 18 units per day? ... The solution then calculates the marginal product and the average total cost. ...

... The president is in the process of deciding whether to evaluate the manager of the manufacturing unit by the average cost per unit or the variable cost per unit ...

... b. What is the average variable cost when Q = 24? ... <br> <br>ANSWER: The average variable cost = The Total Variable Cost divided by The level of output. ...

... f. The average total cost of producing 10 units of output. $. ... f) The average total cost of producing 10 units of output = Total cost/10 = 7860/10 = $786. ...

... 4. What does the average total cost curve measure? ... 6. Where does the marginal cost curve intersect the average total cost and average variable cost curves? ...

... Solution explains the formulas for calculating TFC, TVC, TC, MC, AFC, AVC and ATC. It also explains the shape and behavior of average and total cost curves. ...