Comment on the following statement: Average cost includes both fixed and variable costs, whereas marginal cost only

Question:

Comment on the following statement: “Average cost includes both fixed and variable costs, whereas marginal cost only includes variable costs. Therefore, marginal cost is never greater than average cost.”

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

Step by Step Answer:

Related Book For book-img-for-question

Managerial economics

ISBN: 978-1118041581

7th edition

Authors: william f. samuelson stephen g. marks

See More Books

Question Posted: Jan 30, 2013 01:08 AM

See More Questions

Comment on the following statement discussing Mexicos recent privatization: Mexican state companies are owned in the name of the people but are run and now privatized to benefit Mexicos ruling class.
Comment on the following statement made by a plant supervisor: Meetings with my plant accountant are frustrating. All he wants to do is pin the blame for the many variances he reports.
Comment on the following statement: "A person can only increase his or her wealth by acquiring more goods and services."
In Exercises approximate the definite integral using the Trapezoidal Rule and Simpson's Rule with n = 4. Compare these results with the approximation of the integral using a graphing utility. 3.1 J3...
What is a recombinant microorganism? Discuss examples.
You are the accountant at Danier. Refer to Appendix III for Daniers Consolidated Balance Sheets as at June 28, 2014. Your manager has asked you to do the following: a. Calculate the current ratio,...
Identify three functions for an ATM system.
Consider the following information about three stocks: a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? The variance? The...
you are evaluating two investments: the first investment requires %100,00 initial investment and promises $30,00 in year 1, $50,00 in year 2 and $40,00 in year 3. The second investment requires...
Using the first-order Doppler-shift formula f= f 0 (1 + v/)c 2 , calculate the energy shift of a 1 eV photon emitted from an iron atom moving toward you with energy (3/2)kT at T = 300 K. Compare this...
The development of a new product was much lengthier and more expensive than the companys management anticipated. Consequently, the firms top accountants and financial managers argue that the firm...
A company produces two main products: electronic control devices and specialty microchips. The average total cost of producing a microchip is $300; the firm then sells the chips to other high-tech...
In question 4, what might the latter corporation be able to do to ensure that it pays the same amount of tax as the first corporation? If these options are, in fact, available, what other factors...
Which of the following statements regarding plants is false? a. Meiosis within anthers produces spores that develop into pollen. b. Meiosis within ovules produces spores that develop into an embryo...
What is the value of tip after executing the following code snippet? A. 1 B. 2 C. 3 D. 7 E. None of the above int meal = 5; int tip = 2; var total. meal+ (meal>6 ? tip++: tip--);
Which statement about the following interface is correct? A. The code compiles. B. The code contains an invalid constant. C. The method buyPopcorn() does not compile. D. The method getDrink() does...
When have you tried to problem-solve before thoroughly understanding the situation?
A person with type AB blood has a child with a person with type O blood. What are the possible blood types of the child? a. A or B b. A, B, or O c. A, B, AB, or O d. O only
Correction, overproduction, inventory and motion are all examples of: a. Waste b. 5 S target areas c. Noise d. Value-added activities
Discuss the concept of the looking-glass self. how do you think others perceive you? do you think most people perceive you correctly?
Several studies have shown that WTP differs substantially from WTA for a given change in environmental quality. Why might this be? Does it matter, from a policy analysis viewpoint?
1. The opening statement on the Web site of the Organization of Petroleum Exporting Countries (OPEC) says, . . . OPECs eleven members are all developing countries whose economies are heavily reliant...
1. Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sells commercial-grade polyglutamate. While virtually anyone with a degree in college...
Use the following one-shot, normal-form game to answer the questions below. a. Find each player??s dominant strategy, if it exists.b. Find each player??s secure strategy.c. Find the Nashequilibrium....
Can social norms be understood as emergent properties of social interactions, reflecting negotiated agreements among members of a society regarding acceptable behavior and moral standards?
A quantitative portfolio manager is very good at managing against the Russell 2000 Index. In fact, she is expected to achieve an B of 0.5% per month. Unfortunately, her benchmark is the S&P 500. She...
Suppose that a QEPM department hires a new quantitative equity portfolio manager to manage one of its portfolios. Suppose that the portfolio managers benchmark is the S&P 500, with a Sharpe ratio of...

Comment on the following statement: Average cost includes both fixed and variable costs, whereas marginal cost only

Question:

Step by Step Answer:

Though average total cost is always greater than avera...View the full answer

Managerial economics

Students also viewed these Economics questions