If average total cost is declining then. If average total cost is falling as output increases, then marginal costs must be falling as well. a. True b. False 2022-10-03
If average total cost is declining then Rating:
if average total cost is declining, it means that the cost of producing each unit of a good or service is decreasing as the firm increases its output. This is a desirable situation for firms, as it means they can potentially increase their profits by producing and selling more units at a lower cost.
There are several reasons why average total cost may be declining. One reason is economies of scale, which refer to the cost advantages a firm experiences as it increases its production. As a firm increases its production, it may be able to purchase inputs at a lower cost due to bulk discounts, or it may be able to spread fixed costs over a larger number of units, leading to lower average costs. For example, a car manufacturer may be able to negotiate lower prices for steel and other materials when it orders large quantities, or it may be able to spread the cost of its factory and equipment over a larger number of cars produced.
Another reason why average total cost may be declining is technological improvements. As a firm adopts new technologies or processes, it may be able to produce each unit of a good or service more efficiently, leading to lower costs. For example, a company that produces computer chips may adopt a new manufacturing process that reduces the number of defects and lowers the cost of producing each chip.
In addition, average total cost may be declining due to increased competition in the market. As firms compete with each other to attract customers, they may be motivated to find ways to lower their costs in order to offer lower prices and remain competitive.
Overall, declining average total cost is a positive development for firms as it allows them to potentially increase their profits by producing and selling more units at a lower cost. It can also benefit consumers, as lower production costs may lead to lower prices for the goods and services they purchase.
When average total cost is declining then: a) marginal cost must be less than average cost
Why does the difference between average total cost and average variable cost decrease as output increases? So, the difference between average cost and average variable cost decreases. Answer When you give your item to the USPS for delivery, it accepts your item and starts the process of delivery. For most producing firms: A. The main functioning of the banking system is to : A. When average cost is rising, marginal cost is greater than average cost.
If average total cost is declining then Question options marginal cost must be
Implicit and explicit costs are different in that: A. Statement II : The Non-Cooperation Movement 1921-22 saw the involvement of the Indian Working Class. Statement I : The social institutions of caste in India underwent major changes in the colonial period. You want to determine the profit-maximizing production quantity for a monopolist. Statement I is false but Statement II is true -- View Answer 6.
Why does average cost decrease as output increase? False Average Total Cost and Marginal Cost Average total cost ATC is found by totaling the costs to the firm for a certain production level, but then dividing by that quantity. Average fixed cost intersects marginal cost at the latter's minimum point. Statement I : Southern part of France is famous for wine making industry. Statement II : Laterite soils generally experience leaching. TFC to increase by constant amounts.
If average total cost is falling as output increases, then marginal costs must be falling as well. a. True b. False
Both the statements are individually true but Statement II is not the correct explanation of Statement I C. Because large-scale production allows the realization of economies of scale, the real costs of production vary directly with the level of output. Statement I is true but Statement II is false D. Generally, firms will incur additional costs to produce more goods and services and the additional costs incurred to do so are the marginal costs. This gives firms an per unit cost for that level of production and when compared to per unit price, can calculate profit or loss.
Statement I is true but Statement II is false D. Answer and Explanation: 1. Statement II : The vaisyas and sudras peasants, artisans and labourers either refused to perform producing functions or pay taxes or supply necessary labour for economic production resulting in weakening of Brahminical social order and social tension. Suppose a firm is in a range of production where it is experiencing economies of scale. Statement I : In India tribal movements of nineteenth century resulted out of the process of land displacements and the introduction of forest laws. Both the statements are individually true and Statement II is the correct explanation of Statement I B.
Both the statements are individually true but Statement II is not the correct explanation of Statement I C. Marginal costs are an expressive of the rate of change in cost from one quantity to another. Average fixed costs and average total costs would rise. Average fixed costs and average variable costs would rise. As successive amounts of one resource labor are added to fixed amounts of other resources capital , beyond some point the resulting extra output will decline. Statement I is false but Statement II is true -- View Answer.
If average total cost is declining, then: A. marginal cost must be greater than average total cost. B. the average fixed cost curve must lie above the average variable cost curve. C. marginal cost must be less than average total cost. D. total cost must also be declining.
In comparing the changes in TC and TVC associated with an additional unit of output, we find that: A. If the inputs of all resources are increased by equal amounts, total output will expand by diminishing amounts. I know that the total cost is 0. TVC to increase initially by declining amounts, but eventually increase by increasing amounts. In the short run, which of the following statements is correct? Average fixed costs would rise, but marginal costs would fall.
Why does average total cost decline at first then start rising as output is increased?
The average fixed cost curve will always A. If average total cost is falling as output increases, then marginal costs must be falling as well. Statement I is false but Statement II is true -- View Answer 9. TVC will increase for a time at an increasing rate, but then beyond some point will increase at a diminishing rate. When average total cost is declining then: a marginal cost must be less than average cost b marginal cost must be greater than average cost c average toal cost must be greater than average fixed cost d average variable cost must be declining.