Purpose for rising average variable cost

Assignment Help Macroeconomics
Reference no: EM1316364

1. Explain why the following statement is true: It is possible for average variable cost (AVC) to rise while average total cost (ATC) declines.

2. Why do business firms tend to be inefficient at very low and very high levels of production? Address both fixed and variable costs.

Reference no: EM1316364

Questions Cloud

Effective interest rate : Computation of PV, FV, Simple and effective interest rate - Evalaute the effective rate corresponding to 3% compounded quarterly.
Formulating the hypotheses for a given problem : The average age of the students in the sample was 23 with a standard deviation of 3.5: a) Formulate the hypotheses for this problem.
Permutation and combination to find number of ways : Permutation and combination to find number of ways
Find the yield to maturity at a current market price : Computation of YTM and present value of bonds - Find the yield to maturity at a current market price of (1) $829 or (2) $1,104?
Purpose for rising average variable cost : Describe why the following statement is true: It is possible for average variable cost (AVC) to rise while average total cost (ATC) declines.
Find the probability using exponential distribution : The Johnson family uses a propane tank for cooking on their gas grill. During the summer they need to replace their tank on average every 30 days.
Computation of default risk premium : Computation of default risk premium - What is its default risk premium?
Confidence using the p-value approach : At 95% confidence using the  p- value approach, test the hypotheses. Let α = 0.1.
Subjects reported experiencing important relief from their : In study of a clinical for an allergy drug 115 of the 204 subjects reported experiencing important relief from their symptoms.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Identifying changes in aggregate expenditure line

Each of the following headlines describes an event that will have an effect on desired aggregate expenditure

  Consumption tax on the loan able funds market graphically

Show the effect of moving to a consumption tax on the loan able funds market if people react favourably to the incentive to save. Choose which curve or curves you believe are affected.

  Calculating quantity and equilibrium price

Assume the government imposes a tax of $2.00 per unit to reduce widget consumption and raise government revenues. What will the equilibrium quantity be?

  Making investment decisions

You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers.

  Prediction of unemployment using time trend

Is this a good model for unemployment? What would you add to study the problem more completely? What assumption does this model make regarding unemployment

  Finding change in lump sum taxes to boost real gdp

Suppose that the economy is short of its full-employment (potential) level of GDP, assumed to be $14,000 billion, by $500 billion.

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Suggestions of privatization

Discuss, relating in part whether such highways are public goods and whether or not privatization should work.

  Short run cost and demand data

Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.

  Describing the three savings

What is national saving? What is private saving? What is public saving? How are these three variables related?

  Explanation for distribution income

Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd