Have an account?
Skip to Content
Build your own quiz
10 questions
Show Answers
See Preview
- 1. Multiple Choice
The short run is a period of time in which
the quantity of at
least one factor of production is fixed
the amount of output
is fixed.
prices and wages are fixed
nothing the firm does can be altered
- 2. Multiple Choice
In the above figure, which of the following statements is FALSE?
The total fixed cost curve is curve C
Marginal
cost is equal to the slope of curve A.
The vertical gap between curves A and B is equal to average fixed cost (AFC)
Total
variable cost and total cost both increase as output increases.
- 3. Multiple Choice
In the long run
all input can be varied
all inputs are fixed
some inputs are variable and other inputs are fixed
outputs is fixed
- 4. Multiple Choice
The vertical distance between a firm's total cost (TC) and its total variable cost (TVC) curves
decreases as output decreases
is equal to the average variable cost (AVC)
is equal to the total fixed cost (TFC)
is equal to the marginal cost (MC)
- 5. Multiple Choice
In the above figure, which of the following statements is FALSE?
Average fixed cost decreases (AFC) as output decreases
The vertical gap between curves B and C equals marginal fixed cost.
The vertical gap between curves B and C gets smaller as AFC decreasas
Curve A is the marginal cost (MC) curve
- 6. Multiple Choice
Total variable cost (TVC)
increases as output increases
does not changes as output changes
decreases as output increases
initially decreases and then increases as output increases
- 7. Multiple Choice
Is a firm currently producing zero output in the short run, what do its total costs equal?
Zero
Marginal cost (MC)
Total Variable Cost (TVC)
Total Fixed Cost (TFC)
- 8. Multiple Choice
Economies of scale means
total cost is diminishing
fixed cost is diminishing
average cost is diminishing
marginal cost is diminishing
- 9. Multiple Choice
Which of the following TRUE?
Average fixed costs equals average total cost plus average variable cost.
Average variable cost is always greater than average fixed cost
Average fixed cost equals total fixed cost divide by total output.
Average total cost always falls as output increases.
- 10. Multiple Choice
A firm's average total cost is $60, its average variable cost is $30 and its total fixed cost is $600. Its output is
20 units
30 units
40 units
50 units
- Answer choicesTagsAnswer choicesTags