Question

Show graphically and explain the relationship between the total cost curve and average cost, marginal cost and average variable cost curves.

please provide the graph and write electronic version. Thank you.

Answer #1

Q1. What is the relationship between the marginal product of
labour and the marginal cost?
Q2. What is the difference between diminishing marginal returns
and diseconomies of scale?
Q3. Draw an average total cost curve, an average variable cost,
and a marginal cost curve all on the same diagram. You do not need
to include numbers or make it to scale. Make sure however that the
curves have their usual shape, and that your diagram shows the
correct relationships between...

Short Run Cost
1)Why is the ATC U-Shaped?
b)Why is marginal curve upward sloping in the short run ?
c)Where and why does the MC curve cross the ATC curve?
d)Given values for ATC and AVC,how would you determine Fixed
cost (what are the steps necessary to get from the first twoto the
last one )?
e)Given ATC,how would you determine total cost?
f)Graphically show and verbaly explain what the general pattern
of and relationship between fixed cost,variable cost and...

Short run cost curves:
a. Explain why the marginal cost curve intersects the average
total and variable cost curve at their respective minimum
values:
b. At what point on the ATC will a perfectly competitive firm
always produce in the long run:
c. The supply curve for a perfectly competitive firm is the same
as one of the cost curves based on a specific criterion. State both
the curve and the criterion:

Graph the marginal cost curve, average variable cost curve,
marginal revenue curve ,average total revenue curve, profit, and
quantity produced for a firm that has these 3 characteristics
1. In a competitive market
2. Sell an ordinary good
3. 2 Input Cobb Douglas in which one variable is fixed in the
short run

The graph illustrates an average total cost (ATC) curve (also
sometimes called average cost), marginal cost (MC) curve, average
variable cost (AVC) curve, and marginal revenue (MR) curve (which
is also the market price) for a perfectly competitive firm that
produces toy spaceships. Please answer the three questions,
assuming that the firm is profit maximizing and does not shutdown
in the short run.
What is the firm's total revenue?
$
What is the firm's total cost?
$
What is the...

Draw the average variable cost and average total cost curves for
a typical firm. Include the MC curve. Describe the relationship
between marginal and average costs.

(a) Explain the difference between average, total, and marginal
revenue? What is the shape of the total and marginal revenue curves
for the individual perfectly competitive firm? [5marks]
(b) Why does price equal marginal revenue for the perfectly
competitive firm? What is the relationship to the demand curve for
the firm? [5marks]
(c) Why is the level of output at which marginal revenue equals
marginal cost the profitmaximizing output? [5marks]
(d) What conditions are necessary to determine if the purely...

1. How are marginal and average product related graphically to
marginal and average variable cost?
a. They are mirror images of each other.
b. The maximums of the product curves are the minimum of the
cost curves.
c. As marginal and average product increase the respective cost
curves decrease.
d. All of the above.
2 How can long-run total cost be calculated?
a. Multiplying average costs by output.
b. Adding positive total fixed costs to total variable
costs.
c. Multiplying...

A) What relationship does the IS curve plot? Explain, in words
and graphically, why the IS curve slopes downward. Be sure to label
the graph properly.
B) What relationship does the LM curve plot? Explain, in words
and graphically, why the LM curve slopes upward. Be sure to label
the graph properly.

[2b] Explain and graph the relationship between marginal product
and marginal cost in a firm. Why must the marginal cost of
production increase if the marginal product of the variable
resource is decreasing.

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