On graph paper, draw the ATC, AVC, and MC curves for a competitive firm. 1. Why...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On graph paper, draw the ATC, AVC, and MC curves for a competitive firm. 1. Why are they not straight lines? That is why do they first slope down and then increase? 2. Why does the ATC decline over a greater amount of output that the AVC declines? 3. Why do they switch direction when they cut MC? 4. What is true about the ATC when MC ATC? (Possible answers might be it is constant over the next 10 units, it is at a minimum, it is at a maximum, it is indeterminant, who knows and who cares...) On graph paper, draw the ATC, AVC, and MC curves for a competitive firm. 1. Why are they not straight lines? That is why do they first slope down and then increase? 2. Why does the ATC decline over a greater amount of output that the AVC declines? 3. Why do they switch direction when they cut MC? 4. What is true about the ATC when MC ATC? (Possible answers might be it is constant over the next 10 units, it is at a minimum, it is at a maximum, it is indeterminant, who knows and who cares...)
Expert Answer:
Answer rating: 100% (QA)
Answer Explanation i a average total cost curve and the average variable cost curve and the marginal cost come first decline then they slope upward ii ... View the full answer
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date:
Students also viewed these economics questions
-
Draw the short- and long-run cost curves for a competitive firm in long-run equilibrium. Indicate the long-run equilibrium price and quantity. a. Discuss the firms short-run response to a reduction...
-
The following diagram shows the LRAC and MC curves for a natural monopolylong-run average costs are falling over the entire range of the demand curve. a. Show on the diagram the price and quantity...
-
What is a hedge fund? Why are they not a recommended investment for most investors?
-
One end of a light, elastic string, of natural length 1.2m and modulus of elasticity 32N, is attached to a fixed point, B. A particle, P, of mass 1.5 kg, is then attached to the other end of the...
-
How would you level DFDs?
-
Calculate the force the biceps muscle must exert to hold the forearm and its load as shown in Figure 9.25, and compare this force with the weight of the forearm plus its load. You may take the data...
-
Explain what is meant by dynamic world planning.What is meant by probabilistic planning? What is the difference between probabilistic planning and nondeterministic planning?
-
1. How comparable are the two different methods? In what ways are they similar? In what ways are they different? 2. What are the positive and negative aspects of each approach that Shocker should...
-
Joe aged 24, and Kate, aged 24, met in college. While studying, Joe worked part-time selling car parts to autobody shops in the GTA. He earned $12,000 a year, for two years. After graduating from...
-
Match the marketing data to the marketing mix component (product, price, place, or promotion) that it would be most helpful for analyzing. Marketing Data Competitor price Order fulfillment time...
-
Find current yield and capital gains yield for a 9,2 %, 10-year bond when the bond sells for $847 and YTM = 9.48%. What is the capital gains yield? Select one: a, 1.43% b. 1.02 % c. 1.61 % d. 1.38 %...
-
1. Suggest at least three ideas educators could use to involve service personnel in developing an environmental responsibility plan focused on reducing energy. 2. Name two qualitative evaluation...
-
We recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would...
-
Use game theory to model everyday interactions. Suppose you and a partner play the following game. You both are situated with your backs to each other, 20 feet apart. You have a basketball and a...
-
Let's suppose you (USA dealer) imported 10 BMW (7 series) from a German dealer on March 1, 2018 at 60,000 each, payable in 30 days. The exchange rate on March 1, 2018 was 1.15 US$/. Then you sold...
-
The following information was taken from Crane Ltd's adjusted trial balance as at July 31, 2024 Sales revenus $2,809,000 Interest expensa 40,000 Cost of goods sold 1,564,613 Utilities expense 14,000...
-
Make a balance sheet for the following data- One Time Start-Up Costs: Rent Deposit $4,000 Furniture & Fixtures $8,000 Equipment $6,000 Buildout/ Renovations $10,000 Decorating, Painting and...
-
Review Exhibit 11.4. Analyze each product on the graph according to the characteristics that influence the rate of adoption. For example, what can you conclude from the data about the relative...
-
Consider an income-tax system that has four tax brackets. The following table shows the marginal tax rate that applies to the income in each tax bracket. Earned Income Tax Rate in Bracket Up to $20...
-
The following diagram shows the market for labour in a particular industry. It shows both the supply of labour (the average cost of labour) and the marginal cost of labour. If the labour market were...
-
A hypothetical demand schedule for comic books in a small town is provided below. a. Fill in the table and calculate the price elasticity of demand over each price range. Be sure to use average...
-
What are the pros and cons of virtual teams? What are some of the potential legal issues an organization can encounter with virtual teams?
-
What are the five stages of team development? Describe each stage and how those stages may appear as behaviors in a health care setting.
-
What are the differences among an onsite team, a virtual team, a task force, and a committee? What are some of the potential differences in dynamics between people in these different groups?
Study smarter with the SolutionInn App