Question

1. Average total cost is increasing whenever

a. marginal cost is increasing.
b. marginal cost is greater than the average total cost.
c. marginal cost is less than the average total cost.
d. total cost is increasing.

 

2. Lim Industries has average variable costs of $1 and average total costs of $4 when it produces 900 units of output. The firm's total fixed costs equal

a. $2,700

b.$3.

c. $5.

d. $3,700