Question : 51) The above table gives some production and cost information : 1238733

51) The above table gives some production and cost information for Flaming Fernando’s, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?

A) $1

B) $2

C) $3

D) $3,000

E) More information is needed to determine the answer.

52) The above table gives some production and cost information for Flaming Fernando’s, a restaurant that sells Fiery Frijoles. What is the average total cost of producing 4,500 frijoles?

A) $2

B) $225

C) $9,000

D) $8,000

E) More information is needed to determine the answer.

53) The production and cost information provided in the table above for Flaming Fernando’s, a restaurant that sells Fiery Frijoles, is for the

A) short run because there are no variable costs.

B) short run because there is a fixed cost.

C) long run because there are no variable costs.

D) long run because there are no fixed costs.

E) short run and long run because the total cost increases as production increases.

54) The vertical distance between total cost curve and total variable cost curve is equal to

A) average fixed cost.

B) total fixed cost.

C) average variable cost.

D) average total cost.

E) marginal cost.

55) The U-shaped average total cost curve is

A) a result of firms’ wanting to find the output level where cost is at its minimum.

B) unrealistic because average total cost always increases as output increases.

C) the result of average fixed cost falling and decreasing marginal returns as output increases.

D) a result of constant marginal returns.

E) a result of increasing marginal returns.

56) The U-shape of the average variable, average total, and marginal cost curves reflects

A) increasing marginal returns.

B) decreasing marginal returns.

C) both increasing and decreasing marginal returns.

D) decreasing marginal product.

E) the point that implicit costs become a smaller fraction of total cost as output increases.

57) The short-run average total cost, average variable cost, and marginal cost curves are all U-shaped because of

i.constant total fixed cost.

ii.increasing and then decreasing marginal returns as more labor is hired.

iii.economies and diseconomies of scale as the plant size increases.

A) only i

B) only ii

C) i and iii

D) ii and iii

E) i, ii, and iii

58) In a graph of a typical firm’s AFC, ATC, and AVC curves, the

A) AVC curve lies above the ATC curve.

B) ATC curve lies below the AFC curve.

C) distance between the ATC curve and the AVC curve equals the AFC.

D) distance between the AVC curve and the AFC curve equals the ATC.

E) AVC curve crosses the MC curve at the point where the MC is at its minimum.

59) As we observe the cost curves graph, we see that the

A) MC curve intersects the ATC curve at its maximum.

B) MC curve cannot be U-shaped.

C) ATC curve always has a negative slope.

D) MC curve intersects the AVC curve and ATC curve at their minimums.

E) MC constantly falls as output increases.

60) In a figure showing the average total cost curve and the average variable cost curve, the vertical distance between the two curves is equal to the

A) marginal cost.

B) average fixed cost.

C) total fixed cost.

D) total variable cost.

E) average marginal cost.