Level of output increases

Assignment Help Econometrics

Reference no: EM13912263

As the level of output increases, what happens to the difference between the value of average total cost and average variable cost?

As the level of output increases, the difference between the value of average total cost and average variable cost...

1. Decreases because average fixed cost decreases as output increases.

2. Decreases because average total cost and average variable cost decrease with output.

3. Remains constant because average total cost and average variable cost both increase with output.

4. Remains constant because average fixed cost remains the same as output increases.

5. Increases because average total cost increases with output but average fixed cost decreases with output.

Reference no: EM13912263

Questions Cloud

Calculate total stockholders equity at the end of the year : Stockholders' equity totaled $82,000 at the beginning of the year. During the year, net income was $12,000, dividends of $3,000 were declared and paid, and $10,000 of common stock was issued at par value.

Most likely occurred as a result of this transaction : On June 18, Baltic Arena paid $6,600 to Marvin Maintenance, Inc. for cleaning the arena following a monster truck show. Which of the following most likely occurred as a result of this transaction.

How many degrees ould be assigned to pie slice for response : How many degrees (out of 360) would be assigned to the "pie slice" for the response (a)? How many degrees would be assigned to the "pie slice" for response (b)? Construct the pie chart for the exam question responses.

What is resonance energy : What is resonance energy? Explain taking the example of benzene. What do you understand by para-directing activators, para-directing deactivators and meta-directing deactivators?

Level of output increases : As the level of output increases, what happens to the difference between the value of average total cost and average variable cost? Decreases because average fixed cost decreases as output increases.

Construct a percentage pie chart for the given data : Find the frequency distribution and relative frequency distribution for these data. Construct a percentage bar chart for these data. Construct a percentage pie chart for these data.

Take close look at the specific parts of critical thinking : Take a close look at the specific parts of critical thinking. When have you used these skills? Think about writing assignments, class discussions, presentations, and other past coursework you have completed. Identify one assignment you have completed..

As part of the acquisition agreement : As part of the acquisition agreement, Parma Corporation agrees to pay the former shareholders of Stow Company $0.50 in cash for every dollar of gross revenues above $5,500,000 reported at the end of the first year following acquisition.

Green bonds : Paul is concerned because the Green bonds were worth only $18,000 at the end of 2013, $5,000 less than he paid for them. He is an inexperienced investor and wants to know if this $5,000 is deductible.Draft a brief letter to Paul explaining how to han..

User Account

All Pages