Technology, Production, And Costs Practice Problems Microeconomics Worksheet Page 8

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36. Refer to the figure. Identify the curves in the diagram.
A) E = average fixed cost curve; F = variable cost curve; G = total cost curve, H = marginal cost
curve
B) E = marginal cost curve; F = total cost curve; G = variable cost curve, H = average fixed cost
curve
C) E = average fixed cost curve; F = average total cost curve; G = average variable cost curve, H
= marginal cost curve
D) E = marginal cost curve; F = average total cost curve; G = average variable cost curve; H =
average fixed cost curve.
37. Refer to the figure. The vertical difference between curves F and G measures
A) average fixed costs.
B) marginal costs.
C) fixed costs.
D) sunk costs.
38. Refer to the figure. Curve G approaches curve F because
A) marginal cost is above average variable costs.
B) average fixed cost falls as output rises.
C) fixed cost falls as capacity rises.
D) total cost falls as more and more is produced.

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