Q44 Suppose a firm with the usual U-shaped cost curves is producing a level of output such that its short-run costs are as follows: ATC = $0.37 per unit AVC = $0.32 per unit AFC = $0.05 per unit MC =...

Q44

Suppose a firm with the usual U-shaped cost curves is producing a level of output such that its short-run costs are as follows:

ATC = $0.37 per unit
AVC = $0.32 per unit
AFC = $0.05 per unit
MC = $0.43 per unit

Given these short-run costs, as the firm increases its output, ...

The point of diminishing average product of the variable factor has not yet been reached.

The average product of the variable factor must be increasing.

The marginal product of the variable factor is at its minimum point.

The marginal product of the variable factor must be increasing.

The marginal product of the variable factor must be decreasing.

Jun 09, 2022

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Q44 Suppose a firm with the usual U-shaped cost curves is producing a level of output such that its short-run costs are as follows: ATC = $0.37 per unit AVC = $0.32 per unit AFC = $0.05 per unit MC =...

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