As the firm increases the level of output, the firm\'s average fixed cost Increa
ID: 2494354 • Letter: A
Question
As the firm increases the level of output, the firm's average fixed cost Increase to a certain point then decrease Remain constant and are equal to the firm's fixed cost Decrease throughout the entire production process Steadily increase to a certain point then decreases sharply Assume that ten units of labor are necessary to produce four units of output. The price of labor is six dollars per unit and the fixed costs is 60 dollars.... What is the firms cost to produce four units of output. 60 dollars 70 dollars 120 dollars 150 dollars A decrease in the price of a commodity causes the Utility of a commodity to decrease Marginal utility of the commodity to decrease Purchasing power of the consumer's money to increase Nominal wealth of a person to increase An accountant shows an invoice for a resource to the manager of the firm. They are discussing Explicit costs Implicit costs Economic profit Either explicit or implicit cost but we cannot ten without more information For a wheat farmer m the middle of harvesting time, a fixed input would be Workers hired to harvest the crop Combines rented to harvest the crop The land that had been planted Trucks leased to haul the wheat If total cost of a product is $50,000 when 1000 units are produced, end the total cost of the product is $50,100 when 1001 units are produced, we can conclude that AVC = $100 ATC = $100 AFC = $100 MC = $100 AVC is equal to TVC divided by output ATC minus AFC TC - TFC divided by output All of the above Fixed costs are Costs that vary with the level of output Costs that that a firm must pay even if output is zero Not actual costs since they do not affect the firm's decision Cost that increase at a constant rate when output increases The goal of a firm according to economists is to Stay in business as long as possible Sell as much as possible Grow as large as possible Make as much profit as possible An opportunity cost is An explicit cost Necessary to determine to determine the firm's economic profit Necessary to determine the firm's accounting profit A one-time cost Profit maximization occurs at the level of production where Accounting profits = Economic profits ATC = AFC = AVC MC = MR Explicit costs = implicit costsExplanation / Answer
10. D. Decreases throughout the entire production process.
11. C. $120
12. C. Purchasing power of the consumer's money to increase.
13. A. Explicit costs.
14. C. The land that has been planted.
15. D. MC = $100.
16. A. TVC divided by output.
17. B. Costs that one must pay even if output is zero.
18, D. Make as much profit as possible.
19. C. Necessary to determine the firm's accounting profit.
20. C. MC = MR.
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