Question 1

When total revenue minus total cost is equal to zero, the firm is:

Accepted Answer

A)  earning above-average economic profit. 
B)  earning a normal profit. 
C)  losing too much money to stay in business. 
D)  earning abnormally low profits. 
A)  earning above-average economic profit. 
B)  earning a normal profit. 
C)  losing too much money to stay in business. 
D)  earning abnormally low profits.

Question 2

If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:

Accepted Answer

A)  $20. 
B)  $30. 
C)  $50. 
D)  $70. 
A)  $20. 
B)  $30. 
C)  $50. 
D)  $70.

Question 3

Exhibit 7-9 Cost schedule for firm X $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Output } \
\text { Quantity }
\end{array} & \begin{array} { c } 
\text { Total Fixed } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total Variable } \
\text { Cost }
\end{array} \
\hline 0 & \$ 100 & \$ 0 \
1 & 100 & 50 \
2 & 100 & 84 \
3 & 100 & 108 \
4 & 100 & 127 \
5 & 100 & 150 \
\hline
\end{array}$$
-As shown in Exhibit 7-9, the total cost of producing 4 units is:

Accepted Answer

A)  zero. 
B)  $227. 
C)  $250. 
D)  $100. 
A)  zero. 
B)  $227. 
C)  $250. 
D)  $100.

When total revenue minus total cost is equal to zero, the firm is:

If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:

Exhibit 7-9 Cost schedule for firm X Output Quantity Total Fixed Cost Total Variable Cost 0 \ 100 \ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 -As shown in Exhibit 7-9, the total cost of producing 4 units is:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exam 7: Production Costs

When total revenue minus total cost is equal to zero, the firm is:

If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:

Exhibit 7-9 Cost schedule for firm X Output Quantity Total Fixed Cost Total Variable Cost 0 \ 100 \ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 -As shown in Exhibit 7-9, the total cost of producing 4 units is:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters