Product and Cost Curves
How do you find the inflection points of Average Product Curve, Marginal Product Curve, Marginal Cost Curve, and Average Variable Cost Curve?
Homework Answers
The inflection point is the point on the curve where the curvature changes. The inflection point on the total product curve corresponds to the maximum value of the marginal product rather than the output level on the other curves. The total product curve represents a productivity variable, that is, labor when all other inputs remain constant. As long as the other inputs remain fixed, the law of diminishing returns will apply. The slope of the total product curve reaches its maximum value at the inflection point. The total product first increases at an increasing rate until the inflection point and then increases at a decreasing rate.
TOT D. Construct different cost curves Refer to the factors causing a shift of cost curves...
TOT D. Construct different cost curves Refer to the factors causing a shift of cost curves on P.26 of lecture notes (topic 6), you are required to draw the average total cost curves (ATC), average variable cost curves (AVC), and marginal cost curves (MC) of a firm to indicate the possible impacts of the given changes Given that there is an increase in rent. (Draft work) Diagram Group discussion Given that there is an increase in wage rate. (Draft work)...
4) (20 pts) The marginal product curve intersects the average product curve at the maximum point...
4) (20 pts) The marginal product curve intersects the average product curve at the maximum point of the AP curve. Conversely, the marginal cost curve intersects the average variable cost curve at the minimum point of the AVC curve. a. Explain why this necessarily has to be the case. Present your answer both in mathematical and intuitive terms. Be as detailed as you possibly can in answering this question. b. Explain why the marginal cost curve above the average variable...
QUESTION 15 Which of the following statements about production curves is NOT true? A. Average product...
QUESTION 15 Which of the following statements about production curves is NOT true? A. Average product cannot be negative B. Marginal product cannot be negative C. Total product cannot be negative D. Total product can increase or decrease as more of an input is used QUESTION 16 Last year, your construction company built 25 house using 50 tons of concrete. What is the average product of the concrete input? A. 2 houses per ton B. 0.5 houses per ton C....
Which of the following cost curves would the marginal cost curve NOT cross at its mimimum...
Which of the following cost curves would the marginal cost curve NOT cross at its mimimum point in the short run? A. Average total costATC B. average variable cost C. average fixed cost D. marginal cost
5. The minimum points of the average variable cost and average total cost curves occur where...
5. The minimum points of the average variable cost and average total cost curves occur where the a. marginal cost curve lies below the average variable cost and average total cost curves. b. slope of total cost is the smallest. c. average variable cost and average total cost curves intersect. d. marginal cost curve intersects those curves. 6. The Carters' oldest son attends Big State University. He and his parents pay all his foes and tuition. These payments count in...
In the graph blow, the blue curves illustrates a с Quantity of Output Quantity of the...
In the graph blow, the blue curves illustrates a с Quantity of Output Quantity of the Variable Input long-run average cost curve. total cost curve. total product curve. marginal cost curve. supply curve. In the graph below, point C illustrates the range of с Quantity of Output B A Quantity of the Variable Input increasing marginal returns. constant marginal returns. decreasing marginal costs. diminishing marginal returns.
The inflection point of the total product curve is where: a. the value of the marginal...
The inflection point of the total product curve is where: a. the value of the marginal product is negative. b. the average product equals marginal product. c. the marginal product reaches its maximum or the total product will start to increase at a decreasing rate. d. the marginal rate of technical substitution is equal to one.
20. When the average product of labor is decreasing, which of the following would you expect...
20. When the average product of labor is decreasing, which of the following would you expect to see? a. Average total cost is decreasing b. Average variable cost is increasing c. Marginal cost is decreasing d. Marginal product is greater than average product 21. When a firm is experiencing economies of scale, the slope of the long run average cost (LRAC) curve is This implies that the marginal cost curve lies the LRAC curve. a. Positive; above b. Positive; below...
Workers Output Marginal Product Fixed cost Variable cost Total Cost Average Total cost Marginal cost 0...
Workers Output Marginal Product Fixed cost Variable cost Total Cost Average Total cost Marginal cost 0 0 200 0 200 1 20 20 200 100 300 300 5.00 2 50 30 200 200 400 200 3.33 3 90 40 200 300 500 166.67 2.50 4 120 30 200 400 600 150 3.33 5 140 20 200 500 700 140 5.00 6 150 10 200 600 800 133.33 10.00 7 155 5 200 700 900 128.57 20.00 a. Fill in the...
s which curves) does the marginal cost curve intersect at the (their) minimum point? Average total...
s which curves) does the marginal cost curve intersect at the (their) minimum point? Average total cost curve a Average fived cost curve Average vaniable cost curve D Average total cost curve and average variable cost curve 16 For the cast function C(O) 1000+ 14Q +90+ 3Q, what is the marginal cost of producing the fourth unit of output? A $42 6$295 C $230 D$116 17. For the cost function C(Q) 1000 +140+902+ 30 what averaqe variable cost of producing...
TOT D. Construct different cost curves Refer to the factors causing a shift of cost curves on P.26 of lecture notes (topic 6), you are required to draw the average total cost curves (ATC), average variable cost curves (AVC), and marginal cost curves (MC) of a firm to indicate the possible impacts of the given changes Given that there is an increase in rent. (Draft work) Diagram Group discussion Given that there is an increase in wage rate. (Draft work)...
4) (20 pts) The marginal product curve intersects the average product curve at the maximum point of the AP curve. Conversely, the marginal cost curve intersects the average variable cost curve at the minimum point of the AVC curve. a. Explain why this necessarily has to be the case. Present your answer both in mathematical and intuitive terms. Be as detailed as you possibly can in answering this question. b. Explain why the marginal cost curve above the average variable...
5. The minimum points of the average variable cost and average total cost curves occur where the a. marginal cost curve lies below the average variable cost and average total cost curves. b. slope of total cost is the smallest. c. average variable cost and average total cost curves intersect. d. marginal cost curve intersects those curves. 6. The Carters' oldest son attends Big State University. He and his parents pay all his foes and tuition. These payments count in...
In the graph blow, the blue curves illustrates a с Quantity of Output Quantity of the Variable Input long-run average cost curve. total cost curve. total product curve. marginal cost curve. supply curve. In the graph below, point C illustrates the range of с Quantity of Output B A Quantity of the Variable Input increasing marginal returns. constant marginal returns. decreasing marginal costs. diminishing marginal returns.
20. When the average product of labor is decreasing, which of the following would you expect to see? a. Average total cost is decreasing b. Average variable cost is increasing c. Marginal cost is decreasing d. Marginal product is greater than average product 21. When a firm is experiencing economies of scale, the slope of the long run average cost (LRAC) curve is This implies that the marginal cost curve lies the LRAC curve. a. Positive; above b. Positive; below...
s which curves) does the marginal cost curve intersect at the (their) minimum point? Average total cost curve a Average fived cost curve Average vaniable cost curve D Average total cost curve and average variable cost curve 16 For the cast function C(O) 1000+ 14Q +90+ 3Q, what is the marginal cost of producing the fourth unit of output? A $42 6$295 C $230 D$116 17. For the cost function C(Q) 1000 +140+902+ 30 what averaqe variable cost of producing...
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