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What effect will an increase in output have on average fixed average variable and average total cost?
Wiki User
∙ 15y ago
average fixed will go down, average variable will remain the same, and average total will go down.
Wiki User
∙ 15y ago
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If average cost increases does marginal cost increase?
It depends if the increase in Average Cost is caused by an increase in Fixed Costs or an increase in Variable Costs. An increase in Fixed Costs will not increase MC, because FCs do not vary with output (by definition) And increase in Variable Costs will increase MC
What is the behavior of total variable cost as output increases?
tvc will also inscrease as output increase
What is the output effect and the price effect for an oligopoly?
Since P>MC for an oligopoly, the output effect is that selling one more unit at the sales price will increase profit.The price effect is that an increase in production will increase the total amount sold, which will decrease the price and decrease the profit on all other units sold.If the output effect is greater than the price effect, the owner will increase production.If the price effect is greater than the output effect, the owner will not increase production (and may even decrease production).Oligopolists will continue to increase or decrease production until these marginal effects balance.
Total variable cost does not increase in proportion to output is it true?
False, it is the fixed cost which is not increased or decreased with proportion to output.
Law of variable proportion and law of returns to scale?
Under Law of variable proportion: only one variable input varies all other variable kept constant. Under Law of Return to Scale: All the variable inputs varies except the enterprise. Law of variable proportion is for short period; law of return to scale is for long period. Law of variable proportion shows the relationship if one variable input increase (eg: Labour) by keeping all other variable constant; total product and marginal product increase upto a certain point after that it will increase at a diminishing rate. it shows in three stage first increase then constant and then decrease. Law of return to scale shows the relationship between inputs and output at three different stages: 1. output increase more than inputs, 2. output and input are constant, 3. output is less than proportionate input.
If average cost increases does marginal cost increase?
It depends if the increase in Average Cost is caused by an increase in Fixed Costs or an increase in Variable Costs. An increase in Fixed Costs will not increase MC, because FCs do not vary with output (by definition) And increase in Variable Costs will increase MC
What is the behavior of total variable cost as output increases?
tvc will also inscrease as output increase
What is the output effect and the price effect for an oligopoly?
Since P>MC for an oligopoly, the output effect is that selling one more unit at the sales price will increase profit.The price effect is that an increase in production will increase the total amount sold, which will decrease the price and decrease the profit on all other units sold.If the output effect is greater than the price effect, the owner will increase production.If the price effect is greater than the output effect, the owner will not increase production (and may even decrease production).Oligopolists will continue to increase or decrease production until these marginal effects balance.
Total variable cost does not increase in proportion to output is it true?
False, it is the fixed cost which is not increased or decreased with proportion to output.
Law of variable proportion and law of returns to scale?
Under Law of variable proportion: only one variable input varies all other variable kept constant. Under Law of Return to Scale: All the variable inputs varies except the enterprise. Law of variable proportion is for short period; law of return to scale is for long period. Law of variable proportion shows the relationship if one variable input increase (eg: Labour) by keeping all other variable constant; total product and marginal product increase upto a certain point after that it will increase at a diminishing rate. it shows in three stage first increase then constant and then decrease. Law of return to scale shows the relationship between inputs and output at three different stages: 1. output increase more than inputs, 2. output and input are constant, 3. output is less than proportionate input.
What is an Dependent varible?
Variables used in an experiment or modelling can be divided into three types: "dependent variable", "independent variable", or other.The "dependent variable" represents the output or effect, or is tested to see if it is the effect.The "independent variables" represent the inputs or causes, or are tested to see if they are the cause. Other variables may also be observed for various reasons.
How does the law of variable proportion affect the cost curve?
The law of variable proportion states that as one input is increased while keeping other inputs constant, the output will eventually decrease. This can lead to changes in the cost curve by affecting the cost of production as more or less of a variable input is used, impacting both marginal and average cost.
What effect does stimulation of the acetylcholine receptors of the heart have on cardiac output?
The effect would be an increase in cardiac output. However, there is a maximum level and then the heart would not have time to fill fully and the output would decrease.
What effect does stimulation of acetylcholine receptors of the heart have on cardiac output?
The effect would be an increase in cardiac output. However, there is a maximum level and then the heart would not have time to fill fully and the output would decrease.
What are example of variable expenses?
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
Which variable is also called the dependent variable?
Output variable
Is the output variable the independent variable?
No, it usually is not.
