A rise in average variable price always increases

Assignment Help Macroeconomics

Reference no: EM1328987

The answer to Average variable cost

Answer the below questions True or False, then give a brief explanation of why.

1. Average cost equals marginal cost at the minimum efficient scale of plant.

2. When total fixed cost and price are held constant, an increase in average variable cost will typically cause a reduction in the breakeven activity level.

3. If cost elasticity > 1, diseconomies of scale and increasing average costs are indicated.

4. When long-run average cost is decreasing, it can pay to operate larger plants with some excess capacity rather than smaller plants at their peak efficiency.

5. An increase in average variable cost always increases the degree of operating leverage for firms making a positive net profit.

Reference no: EM1328987

Questions Cloud

Customers are the most important part of a business : Should employees agree that customers are the most important part of a business. Is the customer always right?

Leadership theory meaning of emotionally intelligence : As it pertains to leadership and leadership theory discuss the meaning of emotionally intelligence?

Compute point price elasticity of demand for this product : Compute point price elasticity of demand for this product.

Operations management - processes and supply chain : Identify processes that one can personally evaluate and impact within the relatively short duration of time, say about 6 weeks and Describe each process in terms.

A rise in average variable price always increases : A rise in average variable price always increases the degree of operating leverage for firms making a positive net profit.

Capabilities develop competitive advantage : Where do such firms with similar capabilities develop their competitive advantage?

Osha provides for workplace safety standards : OSHA provides for workplace safety standards, with record-keeping, reporting, notice, and inspection requirements. The Occupational Safety and Health Administration (OSHA) administer the act.

Elucidate is the point price elasticity of demand : Elucidate is the point price elasticity of demand for Fantasy pinball machines

Why supply chain management is important : Provide at least three reasons why supply chain management is an important part of the value delivery network.

User Account

All Pages