Answer to Question #181921 in Microeconomics for James

Question

QUESTION 17

1. The point of transition between where marginal cost is pulling average total cost down and where it is pulling it up:
2. Occurs at all levels of production.
3. Must occur at the maximum point of the average total cost curve.
4. Must occur at the minimum point of the average total cost curve.
5. Must not occur on the average total cost curve.
6. Needs help paying its bills.

QUESTION 18

1. Fixed costs are often:
2. Simply errors made by accountants.
3. Invented by economists to overemphasize profits.
4. Mistaken for variable costs by seasoned businesspeople.
5. Variable costs.
6. Sunk costs that a firm cannot recoup.

QUESTION 19

1. This tells a firm whether it can earn profits given the current price in the market.
2. Average cost.
3. Variable cost.
4. Fixed cost.
5. Total cost.
6. No cost.

QUESTION 20

1. This helps producers understand how increasing or decreasing production affects profits.
2. Average cost.
3. Variable cost.
4. Fixed cost.
5. Total cost.
6. Marginal cost.

Answer 1

17.Must occur at the minimum point of the average total cost curve.

18.Sunk costs that a firm cannot recoup.

19.Fixed cost.

20.Variable cost.