Question: 6. Why is a fixed cost curve horizontal? Why does a variable cost curve have a positive slope?

6. Why is a fixed cost curve horizontal? Why does a variable cost curve have a positive slope?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Questions!

Q:

Making the usual assumption about fixed input and variable input, how would a decrease in the cost of capital affect the following cost curves? The fixed cost curve would not shift The variable cost...

Q:

6. What does an economy's LM curve depict? Why do LM curves typically have a positive slope? What would the LM curve look like in a nation whose central bank used its control of the money supply to...

Q:

Question 1 1 pts Scenario analysis allows a firm to ask what-if type questions in capital budgeting. O True O False Question 2 1 pts The higher the total costs, the larger the net present value of a...

Q:

Question 5 1 pts You have put together a set of cash flow forecasts for a project and have found, on your first calculation, that the NPV is positive. You should use scenario or sensitivity analysis...

Q:

Draw a diagram showing an average fixed cost curve, marginal cost curve, average variable cost curve, and average total cost curve to explain why the average variable cost reaches a minimum at a...

Q:

1. The principle of diminishing returns to production is seen graphically as a (A) total product curve that increases at a decreasing rate as more of a variable input in employed (B) an average fixed...

Q:

A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is 0.1. The government must __________ the price of electricity by __________. A. raise; 1%...

Q:

1.Business is booming at the local McDonald's restaurant. It is contemplating adding a new grill and french-fry machine, but the day supervisor suggests simply hiring more workers. How should the...

Q:

I couldn't do the last question, I would appreciate if someone can help me with it. Suppose a firm's cost function is C(q)=2q2+19 Find variable cost (VC), fixed cost (FC), average cost (AC), average...

Q:

Provide solutions to the problems. e. In what range must the international relative price of wheat fall? Why? 7. Suppose that: In Malaysia the unit labor requirement (ULR) to produce a pound of rice...

Q:

The Kimten Manufacturing Company needs to process 18 jobs. Kimten can process each job on any of the six machines it has available. Iqbal Ahmed, production supervisor at Kimten, wants to allocate...

Q:

A Bitcoin mining firm, Quantum Leap SE, is considering an investment in new mining technology. The new investment would require initial funding of 40 million today and further expenditure on Nvidia...

Q:

4. Junes Garden Supplies purchases merchandise on account from Lawn Supplies, Inc. The list price is $1,600, with a trade discount of 25 percent, terms 1/10, n/30. Junes Garden Supplies pays the...

Q:

In the citation Schusters Express, Inc., 66 T.C. 588 (1976), affd 562 F.2d 39 (CA2, 1977), nonacq., to what do the 66, 39, and nonacq. refer?