Question

The total cost of production equals

Select one:

a. average total cost + average variable cost

b. average total cost + average fixed cost

c. average variable cost + average fixed cost

d. total fixed cost + total variable cost

e. marginal cost + total variable cost

If a firms output equals 10, product price equals $5.00, TFC = $8.00, and TVC = $60.00, then the firms profit would equal

Select one:

a. $.80

b. $1.80

c. $80.00

d. -$16.80

e. -$18.00

The difference between variable cost and fixed cost is that

Select one:

a. fixed cost is paid even when there is no output

b. fixed cost is always falling as output increases

c. variable cost only increases for a while and then it decreases

d. fixed cost is always less than variable cost

e. fixed cost is not paid once production begins

A local bagel company plans to keep and maintain its bagel factory, which is estimated to last 25 years. All cost decisions it makes during the 25-year period

Select one:

a. are short-run decisions

b. are long-run decisions

c. involve only maintenance of the factory

d. are zero, since the cost decisions were made at the beginning

e. involve both fixed and variable cost

Total cost divided by quantity of output is

Select one:

a. average variable cost

b. average total cost

c. average fixed cost

d. marginal cost

e. total variable cost