An electronic-parts manufacturer with U-shaped short-run cost curves is producing 15,000 units per month and has short-run costs as follows: ATC = $6.50, AVC=$4.00,AFC=$2.50,MC=$7.10 a. At this level of output, has the firm started experiencing diminishing marginal and average returns? How do you know? Atthislevelofoutput,thefirm startedexperiencingdiminishingmarginalandaveragereturns.Diminishingmarginalreturnscorrespond tohas/hasnot and diminishing average returns correspond to Since the firm has U-shaped cost curves and since is greater than both of these costs must be increasing/decreasing average total cost/ average fixed b. At this level of output, is the firm operating below, at, or above its capacity? How do you know? cost/ possible cost/ average helow/above/at variable cost/ marginal cost At this level of output, the firm is operating its capacity. Since the firm has. U-shaped cost curves and since is less than this level of output must be the autput that corresponds to the , which is the firm's capacity. below/above/at maximum/minimum Now consider a second firm in the same industry. When it produces 15,000 units per month, its short run costs are as follows: ATC =$6.50 , AVC =$4.50, AFC =$2.00, MC=$4.20 c. At this level of output, has this second firm startageragerifixedig cobiminiahing guerage and marginal returns? How do you know? has/has not variable cost/marginal cost At this level of output, the firm _ started experiencing diminisinging marginal and average returns. Since the firm has U-shaped cost curves and since is greater than both of these costs must be average total cost/ average variable d. Is the firm operating below or above its capacity? How do you know? decreasing/increasing cost/marginal cost below/at/above At this level of output, the firm is operating its capacity. Since the firm has U-shaped cost curves and since is less than this level of output must be the output that corresponds to the , which is the firm's capacity. average fixed cost/ above/below maximum/minimum average total cost/ average fixed cost/ possible average variable cost/ cost/ average variable cost/ marginal cost average total cost.

1. An electronic-parts manufacturer with U-shaped short-run cost curves is producing 15,000 units
per month and has short-run costs as follows: ATC = $6.50, AVC=$4.00,AFC=$2.50,MC=$7.10 a.
At this level of output, has the firm started experiencing diminishing marginal and average returns?
How do you know? Atthislevelofoutput,thefirm
startedexperiencingdiminishingmarginalandaveragereturns.Diminishingmarginalreturnscorrespond
tohas/hasnot and diminishing average returns correspond to Since the firm has U-shaped cost
curves and since is greater than both of these costs must be increasing/decreasing average total
cost/ average fixed b. At this level of output, is the firm operating below, at, or above its capacity?
How do you know? cost/ possible cost/ average helow/above/at variable cost/ marginal cost At this
level of output, the firm is operating its capacity. Since the firm has. U-shaped cost curves and
since is less than this level of output must be the autput that corresponds to the , which is the
firm's capacity. below/above/at maximum/minimum Now consider a second firm in the same
industry. When it produces 15,000 units per month, its short run costs are as follows: ATC =$6.50
, AVC =$4.50, AFC =$2.00, MC=$4.20 c. At this level of output, has this second firm
startageragerifixedig cobiminiahing guerage and marginal returns? How do you know? has/has not
variable cost/marginal cost At this level of output, the firm _ started experiencing diminisinging
marginal and average returns. Since the firm has U-shaped cost curves and since is greater than
both of these costs must be average total cost/ average variable d. Is the firm operating below or
above its capacity? How do you know? decreasing/increasing cost/marginal cost below/at/above
At this level of output, the firm is operating its capacity. Since the firm has U-shaped cost curves
and since is less than this level of output must be the output that corresponds to the , which is the
firm's capacity. average fixed cost/ above/below maximum/minimum average total cost/ average
fixed cost/ possible average variable cost/ cost/ average variable cost/ marginal cost average total
cost