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When marginal costs are below average cost at a given output one can deduce that if output increases what happens?
when marginal costs are below average cost at a given output, one candeduce that, if output increases dose average costs fall or marginal costs will fall
For the average total cost curve of a firm without economies of scale what happens to costs as output increases?
costs go down
For the average total cost curve of a firm without economies of scale what happens to cost as output increases?
costs go down
As output increases the average fixed costs?
remain constant
Do the fixed costs increase as output increases?
No these are costs such as rent stay basically same irrespective of output
When marginal costs are below average cost at a given output one can deduce that if output increases what happens?
when marginal costs are below average cost at a given output, one candeduce that, if output increases dose average costs fall or marginal costs will fall
For the average total cost curve of a firm without economies of scale what happens to costs as output increases?
costs go down
For the average total cost curve of a firm without economies of scale what happens to cost as output increases?
costs go down
As output increases the average fixed costs?
remain constant
As output increases total variable costs?
If the output increases, so will the variable cost. Though, variable cost is not directly proportionate to the output, still it will witness an incline.
Why does the costs increase as output increases?
Costs increase as output increases due to the concept of economies of scale. Initially, as production increases, costs per unit decrease as fixed costs are spread out. However, eventually, diminishing returns set in, causing costs to rise as more resources are needed to produce each additional unit.
Do the fixed costs increase as output increases?
No these are costs such as rent stay basically same irrespective of output
What happens to a firms output when it increases its inputs?
generally it increases, however, there are some cases where the output actually decreases or remains the same.
For the average total cost curve of a firm without economies of scale what happen to costs as output increases?
costs go down
What happens to the value of average fixed cost as the level of output increases?
The average fixed cost is equal to fixed cost divided by level of output, if the output increases; the average fixed cost is less.
Why does the degree of operating leverage change as the quantity sold increases?
Operating leverage decreases as output increases because fixed costs are decreasing in relative importance and variable costs are increasing in relative importance as output rises. Thus, the degree of operating leverage is declining.
When marginal costs are below average cost at a given output one can deduced that if output increases?
when marginal cost are below average cost at a given output, one can deduce that,
