By definition the efficient scale of a producer is at the production point at wh
ID: 1104392 • Letter: B
Question
By definition the efficient scale of a producer is at the production point at which average total cost is minimized. Alternatively. ee producer producing its output operating at efficient scale, if its the slope of total cost is the smallest. b the marginal cost curve intersects at the minimom point of AFC curve. c. the marginal cost curve intersects at the minimum point of AVC curve d. the marginal cost curve intersects at the minimum point of ATC curve 33. If marginal cost is below the average total cost, then average total cost a. is constant d. may rise or fall depending on the size of fixed costs b. is rising c. is falling size of fixed costs 34. The total cost to the firm of producing zero units of output is a. its fixed cost in the short run and zero in the long run. c. its variable cost in both the short run and the long run. d. zero in both the short ran and the long run. bits fixed c stinboth the short and the long run. Table#1: Illustrate various costs of Jimmy's Gigaplot Factory Do fill up Tablell below before answering questions (S bonus points for correetly completion) Out FC Vc TC 35 Refer to Tableiri, What i he average cs of the ouput at Jimmny's Cigplot factory repectively? a. 16. c. 18.6 d. 18. 36. Refer to Tablef. What is the average total cost at 7 units of the output at Jimmy's Gigaplot factory respectively? a. 23.13. b. 22.57 c. 22 d. 21.4 fixed cost at 8 units of the output at Jimmy's Gigaplot factory respectively? 37, Refer to Tableti. What is the avrage fied cost at s nits of the outut myGigplot factory respecti d. 8.50 a. 2.13. b.4.50 c. 5.67 38. Refer to Table#I. What is the marginal cost in producing between 3 and 4 units of the output at respectively? Jimmy's Gigaplot factory d. 23. b. 19. c. 21 39. When comparing short-run average total cot with long-run average total cost at a given level of output, 39. When comparing short-run average a. shorl-run average total cost is typically below long-run average total cost. b. short-run average total cost is typically above long-run average total cost c. short-run average total cost is typically the same as long-run average total cost d. the relationship between short-rum and long-run average total cost follows no clear patterm e long-run marginal cost intersects with the long-run average total cost, the long-run average total cost curve exhibits a. constant returns to scale. e. economies of scale. b. efficient scale. d. diseconomies of scale. RMUNNICHAExplanation / Answer
First question is answered below
1.
Correct option: (d) where MC cuts ATC curve
Reason: When drawing cost curves, MC cuts ATC at its minimum point. Also, the point where MC = ATC, the ATC is minimized and thus making it efficient scale of production.
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