Exam 9: Supply: The Costs of Doing Business

The following table shows the cost of producing different units of ball point pens by a firm. Table 7.1 Refer to Table 7.1.What is the marginal cost of producing the fourth and the fifth unit?

The table given below shows the total fixed and variable costs of a firm. Table 7.3 In Table 7.3, the average fixed cost of the first unit of output is ____ while the average fixed cost of producing 8 units of output is ____.

Suppose that for 20 bicycles, the total fixed cost is $100 and total variable cost is $300.Then the average fixed cost and average variable cost are:

The marginal cost curve intersects the average total cost curve at the firm's most efficient point of production.

The table given below shows the total fixed and variable costs of a firm. Table 7.3 Refer to Table 7.3.At what level of output does the average total cost starts increasing?

Which of the following reflects the correct relationship between average total cost (ATC)and marginal cost (MC)?

The table given below shows the total cost of producing different units of the output by a competitive firm. Table 7.4 In Table 7.4, at 4 units of output marginal cost is:

The figure given below shows three Short Run Average Total Cost (SRATC)curves and the Long Run Average Total Cost (LRATC)curve of a firm. Figure 7.3 Which of the following would account for the shape of the long-run average-total-cost curve in Figure 7.3?

If short-run average total costs are rising in the oil tanker industry, it implies that economies of scale exist in that industry.

Average total cost is calculated by dividing:

The following table shows the cost of producing different units of ball point pens by a firm. Table 7.1 Refer to Table 7.1.What will be the average fixed cost of producing five ball point pens?

The difference between average total cost and average variable cost decreases with an increase in output.

When a firm grows to such an extent that it is unable to coordinate between its employees properly it is likely to experience economies of scale.

Short run refers to a period of time during which:

Which of the following statements is true?

The figure given below shows the average fixed cost (AFC)and the average variable cost (AVC)curves of a competive firm. Figure 7.1 Using Figure 7.1 determine the average total cost of producing the first unit of the output.

The phrase "to spread the overhead" refers to reducing the cost that are not directly attributable to the production process.

In the electricity generation industry, the cost per kilowatt hour of electricity declines as the capacity to generate output increases.This situation represents:

A firm gets less efficient as it gets bigger, if it is experiencing:

Which of the following is not correct?