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average total cost
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What happens to the value of average fixed cost as the level of output increases?
The average fixed cost is equal to fixed cost divided by level of output, if the output increases; the average fixed cost is less.
Why is an Average Fixed Cost curve downward sloping?
This is a simple enough question to answer, Fixed cost is defined as the cost invariant of output, i.e. cost that doesnot change as output increases, i.e. constant. So if you divide a constant by output as a variable, as output increases Average Fixed Costs drop.
When marginal costs are below average cost at a given output one can deduce that if output increases?
when marginal cost are below average cost at a given output, one can deduce that,
What is the behavior of total variable cost as output increases?
tvc will also inscrease as output increase
When marginal costs are below average cost at a given output one can deduce that if output increases what happens?
when marginal costs are below average cost at a given output, one candeduce that, if output increases dose average costs fall or marginal costs will fall
What happens to the value of average fixed cost as the level of output increases?
The average fixed cost is equal to fixed cost divided by level of output, if the output increases; the average fixed cost is less.
As output increases total variable costs?
If the output increases, so will the variable cost. Though, variable cost is not directly proportionate to the output, still it will witness an incline.
Why is an Average Fixed Cost curve downward sloping?
This is a simple enough question to answer, Fixed cost is defined as the cost invariant of output, i.e. cost that doesnot change as output increases, i.e. constant. So if you divide a constant by output as a variable, as output increases Average Fixed Costs drop.
When marginal costs are below average cost at a given output one can deduce that if output increases?
when marginal cost are below average cost at a given output, one can deduce that,
When marginal costs are below average cost at a given output one can deduced that if output increases?
when marginal cost are below average cost at a given output, one can deduce that,
What is the behavior of total variable cost as output increases?
tvc will also inscrease as output increase
When marginal costs are below average cost at a given output one can deduce that if output increases what happens?
when marginal costs are below average cost at a given output, one candeduce that, if output increases dose average costs fall or marginal costs will fall
What happen if marginal cost is less than Average cost?
Average cost declines and output increases.
What does incremental cost means?
the increase or decrease in cost as a result of one more or one less unit of output.
State the final impact of cost-push inflation on the price-level and real output?
Cost pushes the price of products up. Demand will decrease. Output will be reduced.
A decrease in fixed costs with everything else remaining constant?
increases the variable cost
When output increases the unit labor cost falls and the unit material cost falls why?
because the fixed cost is absorbed into the number of units produced.
