A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total

Question:

A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total costs. If it produces an additional watch, will its average total costs rise, fall, or stay the same?

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

Step by Step Answer:

Related Book For book-img-for-question

Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

See More Books

Question Posted: Aug 01, 2016 12:49 PM

See More Questions

The Winsey Company purchased equipment on January 2, 2007 for $700,000. The equipment has the following characteristics: Estimated service life ... 20 years ... Estimated residual value ... $50,000...
Create an Excel spreadsheet to record, in proper form, the journal entries for each of the following events and transactions. a. Purchased, on open account, 4,000 pounds of direct materials at a...
As indicated in the chapter (and more fully in Chapter 5), ABC systems deal with the allocation of all support (i.e., indirect) costs of an organization. This assignment focuses on batch-related...
All adiabatic temperature changes occur as a result of a. changes in the absolute humidity of the air. b. expansion or compression of the air. c. changes is specific humidity d. the addition or...
Kozy Manufacturing incurred the following costs during the year: direct materials $20 per unit; direct labor $12 per unit; variable manufacturing overhead $15 per unit; variable selling and...
what metamorphic fusion emerges between transactional leadership modalities and authentic leadership virtues, fostering a harmonious synergy between pragmatic negotiation and principled integrity in...
The Object Adapter pattern has great potential for design. Provide examples.
Parandah Electronics Ltd., located in England, assembles a standard electrical component from parts it purchases from various suppliers. The production process consists of several steps, starting...
Sally makes $46,000 annually. She receives a promotion and was increased to $56,000 annually. Sally's job notified her she would be receiving retro money from January 1st to July 22nd. How much is...
You are about to open your first restaurant. You restaurant will have 125 seats and will be open 5 nights a week. Projected covers per week will average 1200 and you are open 50 weeks out of the...
The diagram below displays short-run cost curves for a facility that produces liquid crystal display (LCD) screens for cell-phones: a. What are the daily total fixed costs of producing LCD screens?...
At its current short-run level of production, a firm's average variable costs equal $20 per unit, and its average fixed costs equal $30 per unit. Its total costs at this production level equal...
What actions would you consider taking, other than increasing pay, if job satisfaction survey data showed that your employees satisfaction level was dropping significantly?
The total power consumption by all humans on earth is approximately $10^{13} \mathrm{~W}$. Let's compare this to the power of incoming solar radiation. The intensity of radiation from the sun at...
The volume control on a stereo is designed so that three clicks of the dial increase the output by $10 \mathrm{~dB}$. How many clicks are required to increase the power output of the loudspeakers...
We can model the motion of a dragonfly's wing as simple harmonic motion. The total distance between the upper and lower limits of motion of the wing tip is $1.0 \mathrm{~cm}$. The wing oscillates...
A woman wearing an in-ear hearing aid listens to a television set at a normal volume of approximately $60 \mathrm{~dB}$. To hear it, she requires an amplification of $30 \mathrm{~dB}$, so the...
Bats are sensitive to very small changes in frequency of the reflected waves. What information does this allow them to determine about their prey? A. Size B. Speed C. Distance D. Species As discussed...
Chance Innis did business as Roadrunner Hotshot, renting equipment to oil companies in North Dakota. Inniss sister, Cammie Wold, operated the business. At a restaurant in Williston, Innis and Wold...
Data on weekday exercise time for 20 females, consistent with summary quantities given in the paper An Ecological Momentary Assessment of the Physical Activity and Sedentary Behaviour Patterns of...
Baxter manufactures electric hair dryers. Julie purchases a Baxter dryer from her local Ace Drugstore. Cox, a friend and guest in Julies home, has taken a shower and wants to dry her hair. Julie...
Shalom Malul contracted with Capital Cabinets, Inc., in August 1999 for new kitchen cabinets made by Holiday Kitchens. The price was $10,900. On Capitals recommendation, Malul hired Barry Burger to...
In January 1999, John Clark of Clarksdale, Mississippi, bought a paintball gun. Clark practiced with the gun and knew how to screw in the carbon dioxide cartridge, pump the gun, and use its safety...
Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $36.44 per share. She expects the price of the stock to rise to $43.62 over the next 3 years. During that time she also...
At the beginning of the week, Taylan's restaurant had a beginning inventory of food and beverages totaling $4,000. During the week, additional food and beverages purchases totaled $3,000. At the end...
1. Identify the auditor's role in the internal and external auditing processes. 2. Identify one law, regulation, and statue affecting healthcare

A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total

Question:

Step by Step Answer:

If the marginal cost is below average total cost then the average total cost is likely to redu...View the full answer

Economics Today

Students also viewed these Economics questions