The diagram shows the daily average cost curve for a DVD producer. 1.Explain what happens to total cost at output levels
Posted: Wed Jul 06, 2022 6:29 pm
The diagram shows the daily average cost curve for a DVDproducer.
1.Explain what happens to total cost at output levels greaterthan Z.
A. Total cost decreases at an increasing rate
B. Total costs continue to rise but more steeply
C. MC < AC, therefore AC rises
D. MC < AC, therefore TC increases at a faster rate
2. At output levels greater than Z, which one of thefollowing correctly identifies what will happen to the cost?
Costs (£) N Average Cost Output
Average fixed cost A Falls B Falls C Rises D Rises Average variable cost Falls Rises Rises Rises Marginal cost Rises Rises Falls Rises
- The Diagram Shows The Daily Average Cost Curve For A Dvd Producer 1 Explain What Happens To Total Cost At Output Levels 1 (39.4 KiB) Viewed 12 times
A. Total cost decreases at an increasing rate
B. Total costs continue to rise but more steeply
C. MC < AC, therefore AC rises
D. MC < AC, therefore TC increases at a faster rate
2. At output levels greater than Z, which one of thefollowing correctly identifies what will happen to the cost?
- The Diagram Shows The Daily Average Cost Curve For A Dvd Producer 1 Explain What Happens To Total Cost At Output Levels 2 (31.01 KiB) Viewed 12 times
Average fixed cost A Falls B Falls C Rises D Rises Average variable cost Falls Rises Rises Rises Marginal cost Rises Rises Falls Rises