A. Average variable cost is less than average total cost. B. Marginal cost is greater than average total cost. C. Average fixed cost is less than average total cost. Average variable cost is less than average total cost. B
In economics, average cost and or unit cost is equal to total cost divided by the number of goods produced (the output quantity, Q). It is also equal to the sum of average variable costs (total variable costs divided by Q) plus average fixed costs (total fixed costs divided by Q).  If your firm is operating in the negatively sloped portion of a long-run average total cost curve, then your? If your firm is operating in the negatively sloped portion of a long-run average total cost curve, then your production exhibits A) higher wages. B) increasing returns to scale. C) decreasing returns to scale. D) increased input prices.  When compared with price (per unit revenue), average total cost (ATC) indicates the per unit profitability of a profit-maximizing firm. Average total cost is one of three average cost concepts important to short-run production analysis. 1 Third, the average total cost values in this table are comprised of two parts--average variable cost and average fixed cost. 2  In other words, the $4.60 average total cost of producing 10 Stuffed Amigos can be broken down into something like $4.30 of average variable cost and $0.30 of average fixed cost. The average total cost (ATC) curve will be negatively sloped so long as. A. Average variable cost is less than average total cost. B. Marginal cost is greater than average total cost. C. Average fixed cost is less than average total cost. The period in which there are no fixed costs is the. A. Production run. B. Long run. C. Short run. D. Implicit run. 72. The long-run average total cost curve is constructed from the. A. Minimum points of the short-run marginal cost curves. B. Minimum points of the short-run average variable cost curves. C. Lowest average total cost for producing each level of outpu The long-run average total cost curve is constructed from the: 1)Minimum points of the short-run marginal cost curves. 2)Minimum points of the short-run average variable cost curves. 3)Lowest average total cost for producing each level of output. 4)Minimum points of the long-run marginal cost curves. Answers. Best Answer: 3)Lowest average total cost for producing each level of output. Note: each point on the LRAC (Long-run Average cost Curve) corresponds to a point on the SRAC (Short-run Average cost Curve) for the plant size or scale of operation that gives the lowest average cost for that scale of operation. The long-run marginal cost curve shows for each unit of output the added total cost incurred in the long run, that is, the conceptual period when all factors of production are variable so as minimize long-run average total cost. Thus marginal cost initially falls, reaches a minimum value and then increases. The marginal cost curve intersects both the average variable cost curve and (short-run) average total cost curve at their minimum points. When the marginal cost curve is above an average cost curve the average curve is rising. Average Total Cost Curve. As noted above, the average total cost curve is U-shaped. For the first 6 Stuffed Amigos, average total cost declines from over $8 to a low of $3. However, for the production beyond 7 Stuffed Amigos, average total cost increases. The average total cost curve is constructed to capture the relation between average total cost and the level of output, holding other variables, like technology and resource prices, constant. The average total cost curve is one of three average curves.
https://en.wikipedia.org/wiki/Average_cost https://answers.yahoo.com/question/index?qid=20111024145820AAHEkVT http://amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=average+total+cost http://everest-educators.com/index.php/is/1188-economics_ch21_03?path= https://answers.yahoo.com/question/index?qid=20080602234004AAXwXK4 https://en.wikipedia.org/wiki/Cost_curve http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=average+total+cost+curve
The average total cost (ATC) curve will be negatively sloped so long as: