Final BA 301 Managerial Economies 1. In some output domain, the the following co
ID: 1119684 • Letter: F
Question
Final BA 301 Managerial Economies 1. In some output domain, the the following conditions is consistent with this information? average cost decreases from 23 to 14. In this domain, which of a·The marginal cost must decrease b. The marginal cost must increase. c. The marginal cost must be higher than 23 d. The marginal cost is lower than 10 e. The marginal cost is lower than 18.5. 2. A firm has a fixed cost of $1,632,000 and a fixed marginal cost of $4 per unit. The firm sells its product at a price of firm? $100 per unit. What is the break even quantity and cost for the a. 30000 and $1,900,000 b. 20000 and $2,786,000 c. 17000 and $3,000,000 d. 25000 and $3,120,000 e. All of the above are at least partially incorrect. and Marginal cost is MC 3. Total cost C is related to output q by the following: C 10+q+ 24 1+4q. If the competitive price is 21 per unit: a. Optimal output is 4 units and profits are 22. b. Optimal output is 5 units and profits are 40 c. Optimal output is 4 units and profits are 40. d. Optimal output is 5 units and profits are 22. e. Optimal output is 0 units and profits are 0. 4. Suppose that the initial price of the firm is $15 per unit and the price elasticity is-3. The would like to increase its sales by 4 product units. What will be approximately the effec the marginal revenue of the firm? a. Decreases by $10 b. Decreases by $15 c. Increases by $10 d. Increases by $30 e. Increases by $40Explanation / Answer
1) THe answer is A-) The marginal cost must decrease.
because, When average cost is decreased, the marginal cost is less than the average cost and when average cost is increases , the marginal cost is greater than average cost. and when the average cost is same, then the marginal cost is equal to the average cost. thus in our question, when the average cost is decrease from 23 to 14, the marginal cost must decrease but we cannot say it is lower than 10 . thats why the correct answer is A -) the marginal cost must decrease.
well its a chegg policy to answer only 1 question . so please upload it again
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