Question: (a) Prove that the marginal cost function always passes through the minimum points of both the average cost function and the average variable cost

points of both the average cost function and the average variable cost

(a) Prove that the marginal cost function always passes through the minimum points of both the average cost function and the average variable cost function. (b) Show that lim AVC(x) = MC(0). x+0+

Step by Step Solution

★★★★★

3.44 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a To prove that the marginal cost MC function passes through the minimum points of both the average cost AC function and the average variable cost AVC ... View full answer

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 Accounting Questions!

A Single Buyer in the Labor Market: The text treated extensively the case where market power is concentrated on the supply side but it could equally well be concentrated on the demand side. When a...

Consider the cost function c(y) = 4y2 + 16. (a) The average cost function is ______________. (b) The marginal cost function is ______________. (c) The level of output that yields the minimum average...

The total daily cost (in dollars) of producing x city bikes is given by C{x) = 500 + 2x + 0.2x2 (A) Sketch the graphs of the average cost function and the marginal cost function on the same set of...

9 Consider the short-run cost function and associated marginal costs: C(y)=2wy2+10y21+10MC(y)=4wy+y215 a) Calculate the average cost (AC), average variable cost (AVC), and average fixed cost (AFC)...

Help tutors Problem 1. Shorter problems. (50 points) Solve the following shorter problems. 1. Compute the pure-strategy and mixed strategy equilibria of the following coordination game. Call u the...

I need some help with my work Problem 1. Shorter problems. (50 points) Solve the following shorter problems. 1. Compute the pure-strategy and mixed strategy equilibria of the following coordination...

4. [0.13/1 Points] PREVIOUS ANSWERS WANEFMAC7 11.2.010. ASK YOUR TEACHER PRACTICE ANOTHER The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing...

Answers plus calculations Problem 1. Shorter problems. (50 points) Solve the following shorter problems. 1. Compute the pure-strategy and mixed strategy equilibria of the following coordination game....

Please Answer these questions 1. Industry in the Short Run Suppose an industry consists of 500 identical firms all producing a standardized product (widgets). The marginal cost function of each firm...

\Read and answer the question. Flag a) Assume that the marginal cost of firms in an industry is given by M C = 2y and there are no fixed costs. Demand is simply given by y = 1000 and all demand will...

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Total Market Value per Unit (Net Realizable Value) Product Adams Coolidge McKinley Garfield...

What would be your opinion about these commenta? 1. The problem with prison gangs and violence is that there is no control inside those prisons. Corrections and jail wardens have a hard time...

3 Parametric Equations Parametric Equations 1. Consider the parametric equations 3 x= t+1 = 2t 1 (a) For what values of t are the parametric equations defined? (b) Sketch a graph of the curve on the...

Complete the MPS record below for a single item. (Enter your responses as integers. A response of "0" is equivalent to being not applicable.) Item: A Order Policy: 100 units Lead Time: 1 week January...

Garvin (1988) discusses the evolution of quality concepts or philosophies as comprising of five stages. Identify these stages and establish their relevancy to any organisation today. - 3 marks will...

Question 14 Which 2 statements about creating scheduled reports are correct? (Select all that apply) Transactions in bank feeds automatically update before scheduled reports are sent You can schedule...

Consider the following information which relates to dividends per share (DPS) for a given company: Year DPS 2019 $1.1 2018 $1.70 2017 $1.55 2016 $1.40 2015 $5.5 Today, we are in 2020. Management is...

Explain what is meant by vicarious liability and when it is available?

5. List at least three (3) key points you want to communicate relating to the scenario. letter

How would the following events be shown using a production possibilities curve for shelter and food? a. The economy is experiencing double-digit unemployment. b. Economic growth is increasing at more...

Use consumer and producer surplus to show the deadweight loss from a subsidy (producing more than the equilibrium output).

Distinguish cost-push from demand-pull inflation. Provide an example of an event or shock to the economy that would cause each.

An investment advisor has worked with 24 clients for the past five years. Following are the percentage rates of average five-year returns that these 24 clients experienced over this time frame on...

USA Today reports salaries for National Football League (NFL) teams. The file Jaguars contains the salaries for the 2011 Jacksonville Jaguars. a. Calculate the average total salary for the...

Princess Cruises recently offered a 16-day voyage from Beijing to Bangkok during the time period from May to August. The announced price, excluding airfare, for a room with an ocean view or a balcony...