Question : 11) The total variable cost curve ________ because ________ as : 1226137

 

11) The total variable cost curve ________ because ________ as output increases.

A) slopes upward; variable cost increases

B) slopes upward; marginal cost increases

C) slopes downward; variable cost increases

D) slopes downward; marginal cost increases

E) is horizontal; fixed cost does not change

 

12) Marginal cost equals

A) total cost minus total variable cost.

B) total fixed cost divided by total output.

C) total variable cost divided by total output.

D) the change in total cost that results from a one-unit increase in output.

E) the change in fixed cost that results from a one-unit increase in output.

 

13) The change in cost that results from a one-unit increase in output is called the

A) average fixed cost.

B) per-unit variable cost.

C) per-unit total cost.

D) marginal cost.

E) average cost change.

 

14) As a typical firm increases its output, its marginal cost

A) is constant.

B) decreases at first and then increases.

C) increases at first and then decreases.

D) decreases.

E) is negative at first and then positive.

15) When marginal cost is positive, total cost is ________ as output increases.

A) increasing

B) decreasing

C) constant

D) negative

E) undefined

 

16) If total fixed cost increases, which of the following will NOT change?

A) total cost

B) average fixed cost

C) marginal cost

D) average total cost

E) ALL costs increase when total fixed cost increases.

 

17) Scott owns a law-enforcement training operation in Boise, Idaho. He employs three trainers. The last trainer Scott hired increased Scott’s total cost by $466 per week even though the trainer brought in only one new client. Hence Scott’s

A) total variable cost equals $466.

B) marginal cost of the last client equals $466.

C) marginal cost of the last worker equals $233.

D) total variable cost equals $233.

E) total fixed cost of the last client equals $466.

 

 

Labor (workers)

Output (bikes)

Total fixed costs (dollars)

Total variable cost (dollars)

Total cost (dollars)

0

0

200

 

 

1

20

 

100

 

2

50

 

 

 

3

60

 

 

 

4

64

 

 

 

 

18) The table above gives costs at Jan’s Bike Shop. Unfortunately, Jan’s record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total cost of producing 50 bikes?

A) $100

B) $200

C) $300

D) $400

E) $500

 

19) The table above gives costs at Jan’s Bike Shop. Unfortunately, Jan’s record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total fixed cost of producing 64 bikes?

A) $200

B) $300

C) $400

D) $500

E) $600

 

20) The table above gives costs at Jan’s Bike Shop. Unfortunately, Jan’s record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total variable cost of producing 60 bikes?

A) $200

B) $300

C) $400

D) $500

E) None of the above answers are correct.