Question

Determine if the statements and expressions regarding costs are true or false. True False Answer Bank

Answer 1

Question Completion:

1. ATC is rising when MC is below ATC.
2. ATC = (FC + VC)/Q
3. The ATC is increasing the MC is increasing.
4. MC refers to the change in total cost associated with the production of another unit.
5. The VC curve is modeled as a horizontal line.
6. All costs are either fixed or variable.
7. TC = FC + VC + MC
8. The ATC is always greater than or equal to AVC.
9. Average fixed cost is always higher than average variable cost.
10. When fixed costs are positive, the average fixed cost curve is downward sloping.
11. The ATC crosses the MC at the lowest point on the MC.

Answer:

Determining if the statements and expressions regarding costs are true or false:

1. ATC is rising when MC is below ATC. FALSE
2. ATC = (FC + VC)/Q TRUE
3. The ATC is increasing the MC is increasing. FALSE
4. MC refers to the change in total cost associated with the production of another unit. TRUE
5. The VC curve is modeled as a horizontal line. FALSE
6. All costs are either fixed or variable. TRUE
7. TC = FC + VC + MC FALSE
8. The ATC is always greater than or equal to AVC. TRUE
9. Average fixed cost is always higher than average variable cost. FALSE
10. When fixed costs are positive, the average fixed cost curve is downward sloping. TRUE
11. The ATC crosses the MC at the lowest point on the MC. FALSE

Explanation:

The statements and expressions are marked "TRUE" or "FALSE" as required after each and bolded to make the answer clear.