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True or false. The U shape of the long-run ATC curve is the result of diminishing returns?
False
What is modern theory of cost of production?
the traditional theory explains cost curve u shape, but in modern theory says that cost curve L shape
What is the shape of demand curve in perfect competition?
The demand curve in a perfectly competitive market is U-shaped owing to the fact that as the economies of scale take effect average costs begin to lower down. Finally though, the diseconomies of scales take effect too thereby causing the average costs to go up hence creating a u-shape for the demand curve.
Why doe the marginal cost curve go through the lawest point of average cost curve?
as the total average cost is U shape the MC will intersect with U shape at lowest point to indicate the break even point where the company does not make neither profit nor loss. and this minimum point is known as the efficient scale that minimize the losses but does not maximize profit
Describe the influences on the shape of the short run total cost average cost and marginal cost curves in a firm?
The shape of the short-run total cost (TC), average cost (AC), and marginal cost (MC) curves in a firm is influenced by the law of diminishing marginal returns, which occurs when adding more of a variable input (like labor) to a fixed input (like machinery) leads to smaller increases in output. Initially, costs may decrease as production increases due to efficiencies, but eventually, costs rise as additional inputs yield less output. Fixed costs shape the AC curve, while variable costs influence both AC and MC curves. The interplay of these factors creates U-shaped curves for AC and MC, reflecting the initial decline and subsequent rise in costs.
Why is the cost curve U shape?
because sophie went to Nigeria
Why the shape of AC CURVE is U shaped?
The Average Cost (AC) curve is U-shaped due to the relationship between fixed and variable costs as production levels change. Initially, as output increases, average costs decline due to the spreading of fixed costs over more units and increasing efficiency through economies of scale. However, after reaching an optimal production level, average costs begin to rise as diminishing returns set in, leading to higher variable costs for additional units. This combination of decreasing and then increasing costs results in the U-shaped appearance of the AC curve.
True or false. The U shape of the long-run ATC curve is the result of diminishing returns?
False
What is modern theory of cost of production?
the traditional theory explains cost curve u shape, but in modern theory says that cost curve L shape
What is the shape of demand curve in perfect competition?
The demand curve in a perfectly competitive market is U-shaped owing to the fact that as the economies of scale take effect average costs begin to lower down. Finally though, the diseconomies of scales take effect too thereby causing the average costs to go up hence creating a u-shape for the demand curve.
What is the bottom of a curve called?
The bottom of a curve is typically referred to as its "minimum" point. In the context of mathematics or graphing, this is the lowest point on the curve, where the value is less than or equal to all nearby points. In some cases, it can also be called a "valley" if the curve forms a U-shape around that point.
Why doe the marginal cost curve go through the lawest point of average cost curve?
as the total average cost is U shape the MC will intersect with U shape at lowest point to indicate the break even point where the company does not make neither profit nor loss. and this minimum point is known as the efficient scale that minimize the losses but does not maximize profit
Explain how a fjord is formed?
The fjords are surrounded by rugged mountains. We can find them on the shoreline in Labrador. They are formed by glaciers that sculpted the valley's from a <<v>> shape to a <<u>> shape.
What is the strength of the quaternary?
In physics and geometry, the catenary is the theoretical shape a hanging chain or cable will assume when supported at its ends and acted on only by its own weight. The curve is a hyperbolic cosine which has a U-like shape, similar in appearance to a parabola.
How do you sketch the equation x4-8x2 8?
You need to determine what domain to sketch it over. Then select a number of points (values for x) in that domain and calculate the corresponding values for y = the function. Mark these points on the coordinate plane and join them together with a smooth curve. The curve will resemble a U shape with the arms of the U leaning outwards.
How do you get easy AC on adventure quest worlds?
u can buy the ac or goto ballyhoo u got 25% lucky for it to got ac
Relationship between fixed cost average cost and marginal cost with graph?
Your fixed cost is going to be lower than you average cost and marginal cost as it is what you have to pay no matter what. If your business has a fixed cost of $800 (renting the building, insurance, and other things that don't change month to month) per month you and utilities, pay roll, and inventory to that (all things that change month to month) and average the amount out over, lets just say, a year this will allow you to subtract the average cost from the fixed cost to get the average marginal cost. You can deduce that the marginal cost month by month is the total minus the fixed. Draw your own graph. Another way of putting it.. Average Cost curve has a U shape and the Marginal Cost curve intersects the Average Cost curve at its minimum. Average Cost has U shape because when a firm starts producing initially, it experiences increasing returns - as the Fixed Costs are being spread over more levels of output and the combination of input factors reach optimum. This is where AC curve is falling. Then once the Short-run capacity constraints of the Fixed Inputs is reached, the firm begins to experience diminishing marginal returns to its variable inputs. In other words, the principle of diminishing returns is becoming more dominant. This is where AC curve is increasing. When MC is below AC, AC is falling because producing an extra output will pull down average costs. When MC is above AC, AC is rising, because producing an extra output will increase AC. Therefore MC always intercepts a U shaped AC curve at its minimum point.
