what is this output range, the output range greater than about 525 pizzas per day (check intersection of curves, then all x values after that point), when the marginal cost is less than average total cost, average total cost must be, the marginal cost curve intersects both the average variable cost and the average total cost curves at their ____________ points, all of the following cost measures reach their minimum points when they are equal to the value of the marginal cost, except one. According to the table, what is the average total cost of producing 550 pizzas? The figure to the right illustrates the​ short-run cost curves for a company that produces cell phones. Suppose the total cost of producing 10,000 tennis balls is ​$50,000​, and the fixed cost is ​$10,000. Explain why the marginal cost curve intersects the average total cost curve at the level of output where average total cost is at a minimum. Consider the table​ below, which describes the amount of output produced by various quantities of workers. According to the graph, which of the following is more likely to occur when moving from point A to point B? The quantity of flowers grown per day with various combinations of labor and capital are shown in the table below. Your company incurs a cost for store rent​, ​which, in the short​ run, is fixed. Which of the following is true of the relationship between the average product of labor and the marginal product of labor? O c. will earn positive profits if it remains in business D. will become a natural monopoly O E. The level at output at which all economies of scale are exhausted Will lose money if it remains in business. Prior to opening the lawn​ company, Charles earned ​$6 comma 000 as a lifeguard at the neighborhood swimming pool. When he hires one​ worker, he is able to mow 3 yards per day. That is, LATC curve has stopped sloping downward. when lunch said "the book business will scale." The relationship between the inputs used by the firm and the maximum output it can produce is known as the: According to the data in the table, what is the marginal cost of producing the 640th pizza? a U​ shape, initially falling when the marginal product of labor is rising and then eventually rising when the marginal product of labor is falling. When the marginal product of labor is greater than the average product of labor, then the average product of labor must be: the processes a firm uses to turn inputs into outputs of goods and services, being able to produce more output using the same inputs, being able to produce the same output using fewer inputs, and a decline in the quantity of output that can be produced from a given quantity of inputs. Which graph is representative of a typical average total cost curve? In such a case, the company experiences decreasing returns to scale; however, it does not experience diseconomies of scale. With two​ workers, he can mow 8 yards per​ day, and with three​ workers, he can mow 13 yards per day. Is it possible for technological change to be​ negative? Jill should build a smaller restaurant because average total costs will be lower than for a larger restaurant. Consider a firm that hires workers to mow lawns. What is one such​ reason? Is Jill Johnson correct when she says the​ following: ​Jill's average total cost of production is​ increasing, so her marginal cost of producing pizzas must be increasing. Suppose a pizza parlor has the following production​ costs: ​$4.00 in labor per​ pizza, ​$1.00 in ingredients per​ pizza, ​$0.50 in electricity per​ pizza, ​$2 comma 500 in restaurant rent per​ month, and ​$450 in insurance per month. Whenever the marginal product of labor is greater than the average product of labor, the average product of labor must be increasing. The 10 absolute best deals for Amazon Prime Day 2020. An article on fortune.com estimated that the cost of materials in​ Apple's iPhone 7 with 32 gigabytes of memory was​ $225. if workers are variable, restaurant space is variable, and ovens are variable, then Sheri is producing pizza in the _____________, which costs are affected by the level of output produced, which of the following are implicit costs, which of the following are sometimes called accounting costs, which of the graphs above represents a typical average total cost curve, B (does not start at origin, concave up - cup shaped). As a firm expands, it may be able to borrow money less expensively, thereby lowering its costs. At least one input is fixed, all inputs are variable. The relationship between the inputs employed by a firm and the maximum output it can produce with those inputs. What is the difference in the short run and the long​ run? briefly explain, yes. Consider a production process where flowers are grown​ (the output) using gardeners​ (labor) and greenhouses​ (capital). Technology is the process of using inputs to make​ output, while technological change is when a firm is able to produce more output using the same inputs. when the third worker is hired (when the marginal product of labor starts to decrease), the marginal cost curve intersects the average variable cost curve at the level of output where average variable cost is at a minimum because, is it possible for average total cost to be decreasing over a range of output where marginal cost is increasing? is the amount of time that separates short run from the long run the same for every firm? when a​ firm's long-run average costs increase with output. The minimum efficient scale (MES) is the point on a cost curve at which a company can produce its product cheaply enough to offer it at a competitive price. As the level of output​ increases, what happens to the difference between the value of average total cost and average variable​ cost? The figure to the right illustrates the​ long-run average cost curve for a company that makes motors. Assume the money he used to purchase the mowing equipment could otherwise have earned 1 percent per year in the bank and that the mowing equipment depreciates at 25 percent per year. Consider a production process where flowers are grown​ (the output) using gardeners​ (labor) and greenhouses​ (capital). The marginal cost of that output is fallingfalling because the only additional cost to producing more output is the additional wages paid to hire more workers. A firm that does not reach its minimum efficient scale. minimum efficient scale is. When the marginal cost of the last unit produced is below the average, it pulls the average down, and when the marginal cost is above the average, it pulls the average up. he means the nook business will, increase in size gaining economies of scale advantages, as production levels increase, the Nook would become more profitable because, which of the following terms refers to the lowest cost at which a firm is able to produce a given level of output in the long run, when no inputs are fixed, economies of scale happen when the firms long-run average total cost ___________ as output increases. The figure below shows the number of lawns mowed per day for up to four workers. The graph to the right illustrates the average product of labor. What is the shape of the marginal cost​ curve? In the​ graph, the relationship between costs and output for the smaller restaurant is represented by the curve ATC1​, and the relationship between costs and output for the larger restaurant is represented by the curve ATC 2. Next, fill in average total cost in the table. discuss what the implications of this would have been for the automobile industry, a- ford could have profitably sold his cars at a lower price than competitors, she reasons "I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, and I don't want to see my costs rise by $3000 per month." The decreasing return to scale does not essentially result in diseconomies of scale. According to the graph, what size bookstore is more likely to experience diseconomies of scale? The marginal cost of production shows the change in a​ firm's total cost from producing one more unit of a good or service.

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