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3 years ago

The table below presents the average and marginal cost of producing cheeseburgers per hour at a roadside diner.

Business

1 answer:

Butoxors [25]3 years ago

7 0

Answer:

a. At a quantity of 40 cheeseburgers per hour, the average total cost of production is falling and the marginal cost of cheeseburger production is rising.

b. At a quantity of 60 cheeseburgers per hour, the average variable cost of production is rising and the average total cost of cheeseburger production is at a minimum.

Explanation:

a. At a quantity of 40 cheeseburgers per hour, the average total cost of production is falling and the marginal cost of cheeseburger production is rising.

From the table in the question, it can be observed that the average total cost of production at a quantity of 30 cheeseburgers per hour is higher than the average total cost of production at a quantity of 40 cheeseburgers per hour, while the average total cost of production at a quantity of 50 cheeseburgers per hour is lower than the average total cost of production at a quantity of 40 cheeseburgers per hour. This implies that at a quantity of 40 cheeseburgers per hour, the average total cost of production is falling.

Also from the table in the question, it can be observed that the marginal cost of production at a quantity of 30 cheeseburgers per hour is lower than the marginal cost of production at a quantity of 40 cheeseburgers per hour, while the marginal cost of production at a quantity of 50 cheeseburgers per hour is higher than the marginal cost of production at a quantity of 40 cheeseburgers per hour. This implies that at a quantity of 40 cheeseburgers per hour, the marginal cost of production is rising.

b. At a quantity of 60 cheeseburgers per hour, the average variable cost of production is rising and the average total cost of cheeseburger production is at a minimum.

From the table in the question, it can be observed that the average variable cost of production at a quantity of 50 cheeseburgers per hour is lower than the average variable cost of production at a quantity of 60 cheeseburgers per hour, while the average variable cost of production at a quantity of 70 cheeseburgers per hour is higher than the average variable cost of production at a quantity of 60 cheeseburgers per hour. This implies that at a quantity of 60 cheeseburgers per hour, the average variable cost of production is rising.

Also from the table in the question, it can be observed that the average total cost of cheeseburger production at quantities of 50 and 60 cheeseburgers per hour are equal and the lowest on the table, this implies that the average total cost of cheeseburger production is at a minimum at a quantity of 60 cheeseburgers per hour.

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If a Phillips curve shows that unemployment is high and inflation is low in the economy, then that economy:

Rasek [7]

Answer:

is producing at a point where output is less than potential GDP.

Explanation:

When the unemployment is high it is obvious that the economy is under its potential level but there is inflation case so we need to know the meaning of Philips Curve. The aggregate demand and aggregate supply model provides a simple summary of the possible outcomes proposed by the Phillips curve. The Phillips curve shows the combination of inflation and unemployment arising when the economy of the aggregate demand curve in the short run shifts along the short-term aggregate supply curve. Increased demand for goods and services will lead to higher prices in the short term and increased output of goods and services. Increasing output means increasing employment and lowering unemployment. In addition, the higher the rate this year, the higher the rate of inflation, no matter what the price level is in the past. Thus, the change in aggregate demand leads to short-term changes in inflation and unemployment rates, which is consistent with the dependence described in the Phillips curve. Monetary and fiscal policy tools are used to influence the aggregate demand curve, that is, to move the economy along the Phillips curve. Increasing money supply, government spending, or tax cuts move the aggregate demand curve to the right and drives the economy to a point where the Phillips curve corresponds to lower unemployment and higher inflation. Reducing money supply, government spending, or raising taxes will push the aggregate demand curve to the left, while the economy shifts to the point where Phillips curves with lower inflation and higher unemployment. In this sense, the Phillips curve offers policymakers a set of combinations of inflation and unemployment.

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3 years ago

In order to determine the average variable cost, the firm's variable costs are divided by _______________________.

emmasim [6.3K]

Answer:

total output.

Explanation:

for example, a company manufactures 10,000 units of A. Its total variable costs are $50,000, and its total fixed costs are $25,000.

The average variable cost = $50,000 / 10,000 = $5 per unit of A

The average fixed cost = $25,000 / 10,000 = $2.50 per unit of A

The average total cost = $75,000 / 10,000 = $7.50 per unit of A

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3 years ago

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3 years ago

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AnnyKZ [126]

Answer and Explanation:

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AveGali [126]

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