If marginal cost is rising with increasing output, average cost must also be rising?
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If marginal cost is rising with increasing output, average cost must also be rising?
Marginal analysis
Marginal analysis is the study of the additional benefits gained from an activity compared to the additional costs incurred by the same activity.
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View this answerIf marginal cost is increasing that means that the rate of change in the cost of a production is increasing. As this increases each product costs...
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Marginal Analysis in Economics: Definition, Formula & Examples
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Related to this Question
- Average total cost a. increases as output increases. b. decreases as output increases. c. increases if marginal cost is increasing. d. increases if marginal cost is greater than average total cost. e. Both c and d.
- When a firm's marginal cost is rising, we know that: A) average fixed cost must be rising. B) average variable cost must be rising. C) average total cost must be rising. D) marginal product must be zero. E) marginal product must be falling.
- Average fixed cost a. increases as output increases. b. decreases as output increases. c. increases if marginal cost is increasing. d. increases if marginal cost is greater than average fixed cost.
- As long as marginal cost is rising, average cost will be _____. a. falling. b. rising. c. constant. d. falling or rising but not constant.
- Which cost always increases as output increases? A. Total cost B. Average total cost C. Marginal cost D. Average fixed cost
- Does the average total cost curve rise as well if the marginal cost curve is rising?
- When marginal cost is greater than average total cost, A. average total cost must be increasing with output. B. average variable cost must be decreasing with output. C. average fixed cost must be increasing with output. D. marginal cost must be increas
- if marginal costs are increasing, what is happening to average variable costs?
- If average total cost is rising (a) marginal cost is above average total cost. (b) marginal cost is rising. (c) marginal product is rising. (d) marginal cost is above average total cost and is falling.
- If marginal cost is increasing, what do we know about average cost? a. If marginal cost is increasing, average costs could be rising, falling, or constant. The direction of average costs depends upon whether marginal cost is higher or lower than average c
- If the marginal cost of production exceeds the average cost of production, then: 1) the marginal cost is falling. 2) the marginal cost is rising. 3) the average cost is falling. 4) the average cost is rising. 5) the firm should shut down.
- If,at the current level of output, a firm's average cost is greater than its marginal cost, then: A) an increase in output must raise its average cost still further above marginal cost. B)a reductio
- If marginal cost is less than average cost at all output levels A. marginal cost must be falling. B. average cost must be falling. C. average cost must be rising. D. none of these.
- If the total variable cost curve is rising: a. the marginal cost is decreasing. b. the marginal cost is increasing. c. the average fixed cost is constant. d. the average fixed cost is increasing.
- When diminishing marginal returns set in, a. average product is increasing. b. average variable cost is decreasing. c. average cost is decreasing. d. none of above.
- Marginal cost eventually increases as output increases due to the effect of [{Blank}]. a. economies of scale, b. increasing average cost, c. increasing total cost, d. diminishing marginal product of inputs, e. constant fixed cost.
- If the marginal cost is $50 and the average total cost is $75, we can be sure that: a. marginal cost is rising. b. average total cost is rising. c. marginal cost is falling. d. average total cost is falling.
- Can a marginal cost be calculated if the production output decreases instead of increasing?
- If the average variable cost curve is above the marginal cost curve, then: a) marginal costs must be decreasing. b) average variable costs must be increasing. c) marginal costs must be increasing. d) marginal costs can be either increasing or decreasing.
- When marginal costs are increasing: a. marginal costs are always greater than average costs. b. a firm is experiencing diminishing returns. c. average cost is always increasing. d. average cost is alw
- Average total cost is increasing whenever: A. total cost is increasing B. marginal cost is greater than average total cost C. marginal cost is increasing D. marginal cost is less than average total cost
- If the marginal cost of production is smaller than the average total cost, does this tell you whether the average total cost is increasing or decreasing? What if the marginal cost is equal to the aver
- Decreasing returns to scale means that ___________ as ______________. A) short-run marginal costs rises, output rises. B) long-run marginal cost rises, output rises. C) short-run average cost rises, output rises. D) long-run average cost rises, output ris
- Under decreasing returns to scale, average cost (increases/decreases) as quantity produced increases. Over this range of output, the marginal cost curve is (higher than/lower than/equivalent to) the average cost curve.
- If the marginal costs increase (due to falling marginal product of a variable input), how does this change average (total) costs? How about average variable costs?
- If marginal costs are above average costs, then producing one more unit of output will the average cost.
- If average costs and marginal costs are constant then: (a) average variable costs must be increasing. (b) there are decreasing returns to scale. (c) there are no fixed costs of production. (d) None of the above.
- When the output elasticity of total cost is less than one, _____. A. Marginal cost is less than average cost, and average cost decreases as quantity increases. B. Marginal cost is less than average cost, and average cost increases as quantity increases.
- If a firm's average cost is rising, then _______. (a) marginal cost is less than the average cost (b) marginal cost is rising (c) marginal cost is greater than the average cost (d) the firm is making an economic profit.
- If marginal costs are increasing, then the marginal cost curve will be _____.
- Given that the average cost is 5 and the marginal cost is 7, the average cost: a. must decline b. must increase c. is at maximum d. is at minimum e. it is not possible to determine which is correct wi
- 1. The output range over which average product increases is the output range over which A. average variable cost decreases B. average total cost decreases C. marginal cost increases D. marginal cos
- When the average cost is increasing marginal cost?
- If the average variable cost of a firm is falling, then the: ____. a. marginal cost must be falling. b. average fixed cost must be rising. c. marginal cost lies below the average variable cost. d. marginal cost must be rising. e. marginal cost lies above
- In the short run, if the average total cost is increasing as output rises, then: A) total fixed costs must be increasing. B) average fixed costs must be increasing. C) average variable cost must be increasing. D) marginal cost must be below average total
- The marginal cost curve slopes downward at low outputs because of _____. The marginal cost curve eventually slopes upward because of _____. A) the law of diminishing returns; increasing average fixed cost. B) the law of diminishing returns; greater specia
- If the marginal cost curve is below the average variable cost curve, then A. average variable costs are increasing. B. average variable costs are decreasing. C. marginal cost must be decreasing. D. average variable costs could either be increasing or decr
- At the level of output where marginal cost equals average variable cost: a. average total cost is minimum b. average variable cost is decreasing c. average variable cost is increasing d. average total cost is decreasing
- If the average total cost is decreasing as more and more units are produced, then the marginal cost must be A) rising. B) constant. C) negative. D) below the average total cost. E) equal to the average total cost.
- 14. Average variable cost may be either increasing or decreasing when a) marginal cost is decreasing b) marginal product is increasing c) average fixed cost is decreasing d) average total cost is inc
- When marginal cost exceeds the average total cost: a. The average fixed cost must be rising, b. The average total cost must be rising, c. The average total cost must be falling, d. The marginal cost must be falling.
- When marginal cost exceeds average total cost, A. average fixed cost must be rising. B. average total cost must be rising. C. average total cost must be falling. D. marginal cost must be falling.
- The fundamental reason that marginal cost eventually rises as output increases is because of a) economies of scale. b) diseconomies of scale. c) diminishing marginal product. d) rising average fixed cost.
- If marginal cost is less than average cost, at current levels of production, a. average cost is increasing with output. b. average cost is decreasing with output. c. total cost is decreasing. d. average cost is at a minimum.
- A firm's marginal cost is the increase in its total cost divided by the increase in its A. output. B. average cost. C. average revenue. D. quantity of labor.
- If the productivity of variable factors is decreasing in the short-run: a. Marginal cost must increase as output increases. b. Average cost must decrease as output increases. c. Average cost must increase as output increases. d. Marginal cost must be decr
- If marginal cost is above average cost, then: a. average cost is decreasing b. marginal cost must be decreasing c. average cost is constant d. average cost is increasing e. it is not possible to determine if any of the above is true from the information g
- Suppose the marginal cost curve for a firm is given as dc/dQ=75. Find the increase in total cost when output is increased from 100 to 200.
- Marginal cost ________ as the quantity produced increases. a. always increases. b. initially decreases and then increases. c. becomes negative. d. always decreases. e. initially increases and then decreases.
- As a firm increases its output, which of the following costs should decrease? A. Average total cost B. Average variable cost C. Marginal cost D. Average fixed cost
- If marginal cost is above average variable cost, then: a) Average variable cost is increasing, b) Marginal cost must be decreasing, c) Average variable cost is constant, d) Average variable cost is decreasing, e) There are fixed costs.
- When production increases over the short run: a) Average Fixed cost will remain the same. b) Average Variable cost will increase faster than Average Total cost. c) Average Variable Cost will eventually increase faster than Marginal cost. d) Marginal C
- Which always increase(s) as output increases? a) Marginal cost only. b) Fixed cost only. c) Total Cost only. d) Variable Cost only. e) Total cost and Variable cost.
- If the average total cost is decreasing as more and more units are produced, then the marginal cost must be A. rising. B. constant. C. negative. D. below average total cost. E. equal to average total cost.
- If marginal revenue exceeds marginal cost, a competitive firm can increase profit by: A. Increasing output. B. Decreasing output. C. Making no change in output. D. Raising its price
- If marginal cost less than average total cost, for higher output level _____. a. both average total cost and average variable cost must be falling. b. average total cost must be falling but average variable cost may be rising or falling. c. marginal cost
- If marginal cost is less than average total cost, for a higher output level: a. both average total cost and average variable cost must be falling. b. average total cost must be falling, but the average variable cost may be rising, or falling. c. marginal
- Average cost curves initially fall: a. due to declining average fixed costs b. due to rising average fixed costs c. due to rising fixed costs d. due to rising marginal costs
- The range over which average variable cost is decreasing is the same as the range over which: A) average product is decreasing. B) average product is increasing C) average fixed cost is decreasing D) marginal cost is increasing E) marginal product is
- When the firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is and the firm is experiencing . A) upward sloping; diseconomies of scale B) downwar
- What change will take place in the average cost if the marginal cost is rising?
- If marginal product is increasing at an increasing rate, what is happening to marginal cost? Why?
- What happens along the average total cost curve as marginal product is increasing?
- When fixed costs rise by 50%, what happens to the minimum point on the firm's average cost curve? (A) It rises and moves to the left (lower output). (B) It rises vertically but stays at the same level of output. (C) It rises and moves to the right (hig
- Marginal costs will begin to rise at the point where: a. fixed costs increase. b. variable costs increase. c. average variable costs increase. d. diminishing marginal product begins.
- The range of output over which a firm's average variable cost is decreasing is the same as the range over which its A. marginal cost is increasing. B. average product is increasing. C. average product is decreasing. D. average fixed cost is decreasing.
- If average variable costs are increasing while average total costs are decreasing, then A) marginal cost must lie between average variable and average total costs. B) marginal cost must equal averag
- When the marginal cost of another unit of output is less than the current value of average total cost, producing another unit of output: A. Increases average total cost B. Decreases average total cost C. Has no effect on average total cost D. Increase
- Consider a firm's short-run cost curves. If average total cost is increasing as output rises, then: A) total fixed costs must be increasing B) average fixed costs must be increasing. C) average variable cost must be increasing. D) marginal cost must be
- With one variable input, marginal cost is increasing when: 1) marginal product is rising. 2) the firm experiences diminishing marginal returns to the variable input. 3) total cost is increasing at decreasing rate. 4) average cost above marginal cost. 5)
- Diminishing marginal returns implies: a) increasing marginal costs. b) decreasing marginal costs. c) decreasing average fixed costs. d) decreasing average variable costs.
- When marginal cost curve is below an average cost curve, average cost is A. increasing with output. B. declining with output. C. not varying with output. D. none of the statements associated with
- Marginal cost increases as the quantity of output increases. This reflects the property of: a. Increasing total cost, b. Diminishing total cost, c. Increasing marginal product, d. Diminishing marginal product.
- Marginal cost intersects average variable cost: a. when average variable cost is increasing. b. when average variable cost is decreasing. c. at the lowest point of MC. d. at the lowest point of AV
- How do a rise in variable costs affect the average total cost? The marginal cost?
- When price is greater than average variable cost but less than average total cost at the profit-maximizing level of output, a firm should _____. a. continue to produce the level of output at which marginal revenue equals marginal cost b. shutdown to minim
- When marginal cost is below average variable cost, average variable cost must be: A. above average total cost. B. rising. C. below average total cost. D. falling.
- When the average product of the variable input is equal to the marginal product, a. marginal cost reaches its minimum value. b. average variable cost reaches its minimum value. c. marginal cost is rising. d. Both a and c. e. Both b and c.
- If the marginal cost curve is rising, then which of the following must be true? A. The average total cost curve must be rising. B. The average total cost curve must be below the marginal cost curve. C. THe average total cost curve must be above the margin
- Why is it possible for average cost to be decreasing while marginal cost is increasing?
- Is it possible for the average total cost curve to decline if the marginal cost curve is rising? Explain your answer.
- What happens to marginal cost when average cost increases?
- A perfectly competitive firm's marginal revenue exceeds its marginal cost at its current output. To increase its profit, the firm will A. lower its price. B. raise its price. C. decrease its output. D. increase its output.
- If the producer's marginal cost is above his average cost, his/her average cost must be [{Blank}]. a. rising b. falling c. constant d. may be rising or falling e. None of the above is true
- A firm will increase its production when: a. Its marginal revenue rises, b. Its marginal cost rises, c. Its fixed costs fall, d. The demand for its product falls.
- If Marginal Cost (MC) is higher than Average Cost (AC), average cost is: a. falling b. rising c. constant d. None of the above.
- If marginal cost is greater than average variable cost, a. average variable cost is decreasing. b. average variable cost is increasing. c. marginal cost is less than average variable cost. d. average variable cost is negative.
- is increasing when marginal cost is above it. a. explicit costs b. implicit costs c. fixed cost d. variable cost e. average fixed cost f. average total cost g. marginal cost h. diminishing marginal product of labor i. increasing marginal product of labor
- A monopolistically competitive firm will increase its production if a. marginal revenue is greater than marginal cost. b. marginal revenue is greater than average total cost. c. price is greater than marginal cost. d. price is greater than average total c
- A monopolist is producing a level of output at which price is $8, marginal revenue is $5, average variable cost is $6, and marginal cost is $10. In order to maximize profit, the firm should: a. decrease price b. increase price c. keep price the same d. in
- Diminishing marginal returns implies: a. decreasing average variable costs. b. decreasing marginal costs. c. increasing marginal costs. d. decreasing average fixed costs. e. none of the above
- Profit is: a. increased when marginal revenue is greater than marginal cost b. maximized when marginal revenue is greater than marginal cost c. equal to ((price - average cost) x quantity)
- What happens along the average total cost curve as marginal cost is decreasing?
- If average total cost is decreasing as more and more units are produced, then marginal cost must be A) rising B) constant C) negative D) below average total cost E) equal to average total cost
- If a perfectly competitive firm finds that it is producing an output level where price is above average variable cost but less than marginal cost, it should [{Blank}] A. increase its output B. shut down. C. decrease its price. D. increase its price. E
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