Answer:
B. Both I and II are true.
Explanation:
<em> The average total cost of a given level of output is the slope of the line from the origin to the total cost curve at that level of output</em>
The average total cost is defined as the sum of all total costs divided by the quantity produced. In other words, the cost of one unit of production. The average cost curve as shown in the diagram is U-shaped, where it falls with economies of scale and later rises as diseconomies of scale sets in.
<em />
<em>The marginal cost of a given level of output is the slope of the line that is tangent to the total cost curve at that level of output</em>
Marginal cost is the change that occurs in the total cost when quantity produced increases by one unit. In other words, it is the cost of producing an additional unit of a good. As per the diagram, the slope of the line tangent to the TC (TC = AC x Q1) curve at Q1 is the firm's marginal cost at this output level.
Answer:
Jamal
Explanation:
Given that
Number of required slides = 50 slides
Creating slides Per hour = 15 slides
Bill amount per hour = $750
So by considering the above information, Bette's opportunity cost of creating slides would be
= Bill amount per hour ÷ creating slides per hour
= $750 ÷ 15 per hour
= $50
For making 50 slides, the opportunity cost would be
= $50 × 50 slides
= $2,500
And, Jamal opportunity cost is 30% lower, so it would be
= $50 - $50 × 30%
= $50 - $15
= $35
And, the billing rate is 25% higher, so it would be
= $750 + $750 × 25%
= $750 + $187.50
= $937.50
So in one hour, it would be
= $937.50 ÷ 35 slides
= 26 slides
Based on the creating slides, the Jamal gains a competitive advantage over Bette
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