Technology, Production, And Costs Practice Problems Microeconomics Worksheet Page 6
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
1028. When the average total cost is $16 and the total cost is $800, then the number of units the
firm is producing is
A) impossible to determined with the information given.
B) 12,800.
C) 784.
D) 50.
29. If the total cost of producing 20 units of output is $1,000 and the average variable cost is
$35, what is the firm's average fixed cost at that level of output?
A) $65
B) $50
C) $15
D) It is impossible to determine without additional information.
30. If a firm produces 20 units of output and incurs a total cost of $1,000 and a variable cost is
$700, calculate the firm's average fixed cost of production if it expands output to 25 units.
A) $300
B) $15
C) $12
D) It is impossible to determine without additional information.
31. If the marginal cost curve is below the average variable cost curve, then
A) average variable cost is increasing.
B) average variable cost is decreasing.
C) marginal cost must be decreasing.
D) average variable cost could either be increasing or decreasing.
32. Long-run cost curves are U-shaped because
A) of the law of demand.
B) of the law of diminishing returns.
C) of economies and diseconomies of scale.
D) of the law of supply.
33. If production displays economies of scale, the long-run average cost curve is
A) above the short-run average total cost curve.
B) downward-sloping.
C) upward sloping.
D) below the long-run marginal cost curve.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Education