A firm is producing 1,000 units at a total cost of $5,000. When it increases production to

Question:

A firm is producing 1,000 units at a total cost of

$5,000. When it increases production to 1,001 units, its total cost rises to $5,008. For this firm,

a. marginal cost is $5, and average variable cost is $8.

b. marginal cost is $8, and average variable cost is $5.

c. marginal cost is $5, and average total cost is $8.

d. marginal cost is $8, and average total cost is $5.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Microeconomics

ISBN: 9780357133484

9th Edition

Authors: N Gregory Mankiw

See More Books

Question Posted: Jan 27, 2024 11:00 PM

See More Questions

Problem 12.92 Ballistic Fingerprinting: Guns make unique markings on bullets they fire and their shell casings. These markings are called ballistic fingerprints. An ABCNEWS Poll examined the opinions...
The acceleration of point A is defined by the relation a = ? 5.4 sin kt, where a and t are expressed in ft/s2 and seconds, respectively, and k = 3 rad/s. Knowing that x = 0 and v = 1.8 ft/s when t =...
Which one or more of the following items will be included in the Statement of changes in equity for the year ended 30 September 2011? (a) Preference dividend paid (b) Ordinary dividend declared (c)...
Implement the method keys () for HashST.
A flashlight bulb rated at 2.5 W and 3.0V is operated by 1 9.0-V battery. To light the bulb at its rated voltage and power, a resistor R is connected in series as shown in Fig. 19-72. What value...
What is meant by the term contribution to indirect expenses? Explain why man agement may find information about the contribution to overhead of each de partment more useful than departmental net...
How can lenders go about restricting shareholders rights to dividends? ( Hint: Think back to Chapter 6 .)
PepsiCos financial statements are presented in Appendix A. Financial statements of The Coca-Cola Company are presented in Appendix B. Instructions (a) Based on the information contained in the...
The Data Group Inc. had the following balances In its equity accounts at December 3 1 , 2 0 2 2 : Common shares, unlimited shares authorlzed; 2 3 0 , 0 0 0 shares issued and outstanding Retained...
A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it increases production to 21 units, which of the following must occur? a. Marginal cost will decrease....
Diminishing marginal product explains why, as a firms output increases, a. the production function and total-cost curve both get steeper. b. the production function and total-cost curve both get...
Verify the consistency and order of approximation of the schemes (4.13) and (4.14) using Taylor series expansions.
Go to: https://www.instagram.com/ryderseyewear/ on your desktop, laptop, or mobile (or a combination of all 3). You are the new Social Media Marketing Manager for Ryders Eyewear. You've been asked...
As leaders, it is very important that we have the ability to assess our own motivation and the motivation of others around us. It is also important to recognize the key factors involved in...
At the end of this exam, you will find Article 1 - " How Companies Can Prepare for a Long Run of High Inflation ". Please read the article and, when necessary, consult additional sources and the...
You can develop your capabilities as a manger by better understanding different ways of motivating and rewarding employees. You can also better prepare for your own career by better understanding the...
Topic: Project Malasakit of Kara David https://projectmalasakit.org/ What is the pros and cons of these alternative courses of the action below: Strengthen the internal organization via promoting it...
Steam at 400oC enters a nozzle with an average velocity of 20 m/s. If the specific volume (v) and the flow area at the inlet are measured as 0.1 m2/kg and 0.01 m2 respectively, determine (a) The...
Chao, Louis, and Mari, unrelated individuals, own all of the shares of Cerise Corporation. All three shareholders have been active in the management of Cerise since its inception. In the current...
For a perfectly competitive firm, the marginal cost curve determines how much output a profit-maximizing firm will produce. For input markets, the marginal revenue product curve determines how much...
On August 25, 2017, Hurricane Harvey hit the Texas Gulf Coast, causing $125 billion in damage. The hurricane was devastating to many gulf coast industries, with one of the hardest hit being the oil...
According to the Organization for Economic Cooperation and Development (OECD), labor productivity increased and unemployment also increased in Australia from 2013 to 2014. Explain why an increase in...
Flexible manufacturing places new demands on the management accounting information system and how performance is evaluated. In response, a company should a. institute practices that reduce switching...
Revenue and expense items and components of other comprehensive income can be reported in the statement of shareholders' equity using: U.S. GAAP. IFRS. Both U.S. GAAP and IFRS. Neither U.S. GAAP nor...
Kirk and Spock formed the Enterprise Company in 2010 as equal owners. Kirk contributed land held an investment ($50,000 basis; $100,000 FMV), and Spock contributed $100,000 cash. The land was used in...

A firm is producing 1,000 units at a total cost of $5,000. When it increases production to

Question:

Step by Step Answer:

Principles Of Microeconomics

Students also viewed these Business questions