Minimum when marginal cost equals average cost

Assignment Help Business Economics

Reference no: EM13795902

This unit describes key characteristics governing how firms operate in the short run and the long run. Perhaps the most important concepts in the unit are the shapes and the logic of the short-run and long-run cost curves. Can you explain why average cost is at a minimum when marginal cost equals average cost?

Reference no: EM13795902

Questions Cloud

What is the after-tax interest rate on this loan : To increase its market share, Sole Brother Inc. decided to borrow $50,000 from its banker for the purchase of newspaper advertising for its shoe retail line. The loan is to be paid in four equal annual payments with 15% interest. The loan is discount..

Difference-in-difference estimator of effect of job earnings : Suppose that between 2003 and 2007, one group of individuals (Group 1) received job training while another otherwise similar group (Group 2) did not. Suppose that the average earnings of the first group went from $40,000 per year to $55,000 per year,..

Cost of producing wheat is the rental cost of land : A farmer is producing where MC = MR. Say that half of the cost of producing wheat is the rental cost of land ( a fixed cost ) and half is the cost of labor and machines ( a variable cost ) . If the average total cost of producing wheat is $20 and the..

What are equilibrium price and quantity for this monopolist : You live in a small town with only one grocery store. the demand curve for food in your town by p=35-1/5q. The grocery store has a total cost curve of tc = 50+1.25Q. Graph the Demand, Marginal Revenue, Marginal Cost, and Average Total Cost curves. Wh..

Minimum when marginal cost equals average cost : This unit describes key characteristics governing how firms operate in the short run and the long run. Perhaps the most important concepts in the unit are the shapes and the logic of the short-run and long-run cost curves. Can you explain why average..

Calculate the next year anticipated price on the bond : Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $938.97, and another 2-year discount bond (bond B) with identical risk features and face value is currently trading at $834.01. Please calculate the..

Classified as what type of unemployment : Unemployment according to Marx could be classified as what type of unemployment?

Worker employment tax-burden-employment and market wage : Consider a new per-worker employment tax on workers (where previously there was no tax). Outline the consequences of this tax on the local labor market. Use appropriate, clear, and well-labeled diagrams. In your answer show (1) the burden of the tax ..

Statement is true about money supply and reserve ratio : If the USA experiences an economic boom relative to its trading partners, then: If China , a key trading partner of the USA, expericnes a recession, then. Suppose the Government of the USA decided to increases it's spending over next one year. How wi..

User Account

All Pages