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Consider Firm GM, a car manufacturer. Suppose you have some information regarding the cost curves of Firm GM: Output Average Cost ( at that output level) Marginal Cost of that Car 9,999 ? $ 12,000 10,000 $ 14,000 $ 11,500 19,999 $ 12,500 20,000 ? $ 12,600 Will the Average Cost of 9,999 cars be greater than $ 14,000 , less than $ 14,000, or can you not tell with the information given? ( Hint: it might help to draw a graph of AC and MC, and see if you can place units 9,999 and 10,000 on that graph). O Greater than $ 14,000 O Less Than $ 14,000 O Can't Tell with the information given

Consider Firm GM, a car manufacturer. Suppose you have some information regarding the cost curves of Firm GM: Output Average Cost ( at that output level) Marginal Cost of that Car 9,999 ? $ 12,000 10,000 $ 14,000 $ 11,500 19,999 $ 12,500 20,000 ? $ 12,600 Will the Average Cost of 9,999 cars be greater than $ 14,000 , less than $ 14,000, or can you not tell with the information given? ( Hint: it might help to draw a graph of AC and MC, and see if you can place units 9,999 and 10,000 on that graph). O Greater than $ 14,000 O Less Than $ 14,000 O Can't Tell with the information given

Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 19PAE
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Consider Firm GM, a car manufacturer. Suppose you have some information regarding the cost curves of Firm GM: Output Average Cost ( at that output level) Marginal Cost of that Car 9,999 ? $ 12,000 10,000 $ 14,000 $ 11,500 19,999 $ 12,500 20,000 ? $ 12,600 Will the Average Cost of 9,999 cars be greater than $ 14,000 , less than $ 14,000, or can you not tell with the information given? ( Hint: it might help to draw a graph of AC and MC, and see if you can place units 9,999 and 10,000 on that graph). O Greater than $ 14,000 O Less Than $ 14,000 O Can't Tell with the information given
Transcribed Image Text:Consider Firm GM, a car manufacturer. Suppose you have some information regarding the cost curves of Firm GM: Output Average Cost ( at that output level) Marginal Cost of that Car 9,999 ? $ 12,000 10,000 $ 14,000 $ 11,500 19,999 $ 12,500 20,000 ? $ 12,600 Will the Average Cost of 9,999 cars be greater than $ 14,000 , less than $ 14,000, or can you not tell with the information given? ( Hint: it might help to draw a graph of AC and MC, and see if you can place units 9,999 and 10,000 on that graph). O Greater than $ 14,000 O Less Than $ 14,000 O Can't Tell with the information given
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