Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Producing an additional unit whose marginal cost exceeds the average total cost incurred t...

Producing an additional unit whose marginal cost exceeds the average total cost incurred thus far has the effect of pulling the

Producing an additional unit whose marginal cost exceeds the average total cost incurred thus far has the effect of pulling the:  

A. fixed cost up

B. average cost up

C. average cost down

D. total cost down

33.In order to divide a given production quota between two production processes in such a way as to produce the quota at the lowest possible cost, one should produce the output where:  

A. average costs are equal for both processes

B. average cost is equal to marginal cost for both processes

C. marginal costs are equal in both processes

D. marginal costs are at least equal to ATC in each process

34.The long-run total cost of zero output is equal to:  

A. variable cost

B. fixed cost

C. zero

D. the marginal revenue product of labour

35.Markets characterized by declining long-run average costs are often referred to as:  

A. perfect competition

B. diseconomies of scale

C. natural monopolies

D. nonprofit organizations

36.The MC curve slopes upward due to:  

A. increasing returns to scale

B. decreasing returns to scale

C. diminishing returns

D. constant returns to scale

37.The total fixed cost function:  

A. is horizontal

B. is U-shaped

C. is an upward sloping line

D. is a downward sloping line

38.The AFC curve:  

A. always slopes downward

B. is U-shaped

C. is a horizontal line

D. is the same as the total fixed cost curve

39.ATC equals:  

A. AVC - AFC

B. FC/Q

C. (TFC + TVC)/Q

D. MC + AFC

40.MC equals:  

A. dTC/dQ

B. dFC/dQ

C. FC/Q

D. VC/Q

Feb 11 2020 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions