Question 23 The sum of fixed and variable costs is _____ cost. A. total B. avera

Question

Question 23 The sum of fixed and variable costs is _____ cost. A. total B. average C. marginal D. variable 1 points    QUESTION 24
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must be _____ and _____ must be _____. A. average total cost; increasing; marginal cost; decreasing B. average variable cost; decreasing; average fixed cost; increasing C. marginal product; increasing; average variable cost; decreasing D. marginal product; increasing; average fixed cost; decreasing 1 points    QUESTION 25
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is increasing, _____ must be _____. A. average total cost; increasing B. marginal product; increasing C. marginal product; decreasing D. average variable cost; increasing QUESTION 27
Kaile Cakes produces 10 cakes per day. The marginal cost of the tenth cake is $24, and average total cost of 10 cakes is $6. The average total cost of 9 cakes is: A. $5. B. $6. C. $4. D. $8. 1 points    QUESTION 28
In the long run, all costs are: A. marginal. B. variable. C. fixed. D. constant. 1 points    QUESTION 29
Economies and diseconomies of scale are associated with the: A. average fixed cost curve and the short run. B. long-run average total cost curve and the long run. C. short-run average total cost curve and the short run. D. marginal cost curve and both the long and short run. 1 points    QUESTION 30
If all firms in an industry are price takers: A. the market sets the price, and each firm can take it or leave it by setting a different price. B. each firm can sell at the price it wants to charge, provided it is not too different from the prices other firms are charging. C. an individual firm cannot alter the market price even if it doubles its output. D. each firm takes the market price as given for its output level, recognizing that the price will change if it alters its output significantly. 1 points    QUESTION 31
Perfect competition is characterized by: A. the inability of any one firm to influence price. B. rivalry in advertising. C. fierce quality competition. D. widely recognized brands. 1 points    QUESTION 32
Which of the following is NOT a characteristic of a perfectly competitive industry? A. Profits may be positive in the short run. B. Firms seek to maximize profits. C. There are many firms. D. Products are differentiated. 1 points    QUESTION 33
The slope of the total revenue curve is: A. equal to marginal revenue and is constant under perfect competition. B. marginal cost. C. net revenue. D. equal to marginal revenue and varies under perfect competition. 1 points    QUESTION 34
The slope of the total cost curve is: A. always negative. B. marginal revenue. C. constant under perfect competition. D. marginal cost. Question 23 The sum of fixed and variable costs is _____ cost. A. total B. average C. marginal D. variable 1 points    QUESTION 24
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must be _____ and _____ must be _____. A. average total cost; increasing; marginal cost; decreasing B. average variable cost; decreasing; average fixed cost; increasing C. marginal product; increasing; average variable cost; decreasing D. marginal product; increasing; average fixed cost; decreasing 1 points    QUESTION 25
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is increasing, _____ must be _____. A. average total cost; increasing B. marginal product; increasing C. marginal product; decreasing D. average variable cost; increasing QUESTION 27
Kaile Cakes produces 10 cakes per day. The marginal cost of the tenth cake is $24, and average total cost of 10 cakes is $6. The average total cost of 9 cakes is: A. $5. B. $6. C. $4. D. $8. 1 points    QUESTION 28
In the long run, all costs are: A. marginal. B. variable. C. fixed. D. constant. 1 points    QUESTION 29
Economies and diseconomies of scale are associated with the: A. average fixed cost curve and the short run. B. long-run average total cost curve and the long run. C. short-run average total cost curve and the short run. D. marginal cost curve and both the long and short run. 1 points    QUESTION 30
If all firms in an industry are price takers: A. the market sets the price, and each firm can take it or leave it by setting a different price. B. each firm can sell at the price it wants to charge, provided it is not too different from the prices other firms are charging. C. an individual firm cannot alter the market price even if it doubles its output. D. each firm takes the market price as given for its output level, recognizing that the price will change if it alters its output significantly. 1 points    QUESTION 31
Perfect competition is characterized by: A. the inability of any one firm to influence price. B. rivalry in advertising. C. fierce quality competition. D. widely recognized brands. 1 points    QUESTION 32
Which of the following is NOT a characteristic of a perfectly competitive industry? A. Profits may be positive in the short run. B. Firms seek to maximize profits. C. There are many firms. D. Products are differentiated. 1 points    QUESTION 33
The slope of the total revenue curve is: A. equal to marginal revenue and is constant under perfect competition. B. marginal cost. C. net revenue. D. equal to marginal revenue and varies under perfect competition. 1 points    QUESTION 34
The slope of the total cost curve is: A. always negative. B. marginal revenue. C. constant under perfect competition. D. marginal cost. Question 23 The sum of fixed and variable costs is _____ cost. A. total B. average C. marginal D. variable 1 points    QUESTION 24
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must be _____ and _____ must be _____. A. average total cost; increasing; marginal cost; decreasing B. average variable cost; decreasing; average fixed cost; increasing C. marginal product; increasing; average variable cost; decreasing D. marginal product; increasing; average fixed cost; decreasing 1 points    QUESTION 25
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is increasing, _____ must be _____. A. average total cost; increasing B. marginal product; increasing C. marginal product; decreasing D. average variable cost; increasing QUESTION 27
Kaile Cakes produces 10 cakes per day. The marginal cost of the tenth cake is $24, and average total cost of 10 cakes is $6. The average total cost of 9 cakes is: A. $5. B. $6. C. $4. D. $8. 1 points    QUESTION 28
In the long run, all costs are: A. marginal. B. variable. C. fixed. D. constant. 1 points    QUESTION 29
Economies and diseconomies of scale are associated with the: A. average fixed cost curve and the short run. B. long-run average total cost curve and the long run. C. short-run average total cost curve and the short run. D. marginal cost curve and both the long and short run. 1 points    QUESTION 30
If all firms in an industry are price takers: A. the market sets the price, and each firm can take it or leave it by setting a different price. B. each firm can sell at the price it wants to charge, provided it is not too different from the prices other firms are charging. C. an individual firm cannot alter the market price even if it doubles its output. D. each firm takes the market price as given for its output level, recognizing that the price will change if it alters its output significantly. 1 points    QUESTION 31
Perfect competition is characterized by: A. the inability of any one firm to influence price. B. rivalry in advertising. C. fierce quality competition. D. widely recognized brands. 1 points    QUESTION 32
Which of the following is NOT a characteristic of a perfectly competitive industry? A. Profits may be positive in the short run. B. Firms seek to maximize profits. C. There are many firms. D. Products are differentiated. 1 points    QUESTION 33
The slope of the total revenue curve is: A. equal to marginal revenue and is constant under perfect competition. B. marginal cost. C. net revenue. D. equal to marginal revenue and varies under perfect competition. 1 points    QUESTION 34
The slope of the total cost curve is: A. always negative. B. marginal revenue. C. constant under perfect competition. D. marginal cost. Question 23 The sum of fixed and variable costs is _____ cost. A. total B. average C. marginal D. variable 1 points    QUESTION 24
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must be _____ and _____ must be _____. A. average total cost; increasing; marginal cost; decreasing B. average variable cost; decreasing; average fixed cost; increasing C. marginal product; increasing; average variable cost; decreasing D. marginal product; increasing; average fixed cost; decreasing 1 points    QUESTION 25
Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is increasing, _____ must be _____. A. average total cost; increasing B. marginal product; increasing C. marginal product; decreasing D. average variable cost; increasing QUESTION 27
Kaile Cakes produces 10 cakes per day. The marginal cost of the tenth cake is $24, and average total cost of 10 cakes is $6. The average total cost of 9 cakes is: A. $5. B. $6. C. $4. D. $8. 1 points    QUESTION 28
In the long run, all costs are: A. marginal. B. variable. C. fixed. D. constant. 1 points    QUESTION 29
Economies and diseconomies of scale are associated with the: A. average fixed cost curve and the short run. B. long-run average total cost curve and the long run. C. short-run average total cost curve and the short run. D. marginal cost curve and both the long and short run. 1 points    QUESTION 30
If all firms in an industry are price takers: A. the market sets the price, and each firm can take it or leave it by setting a different price. B. each firm can sell at the price it wants to charge, provided it is not too different from the prices other firms are charging. C. an individual firm cannot alter the market price even if it doubles its output. D. each firm takes the market price as given for its output level, recognizing that the price will change if it alters its output significantly. 1 points    QUESTION 31
Perfect competition is characterized by: A. the inability of any one firm to influence price. B. rivalry in advertising. C. fierce quality competition. D. widely recognized brands. 1 points    QUESTION 32
Which of the following is NOT a characteristic of a perfectly competitive industry? A. Profits may be positive in the short run. B. Firms seek to maximize profits. C. There are many firms. D. Products are differentiated. 1 points    QUESTION 33
The slope of the total revenue curve is: A. equal to marginal revenue and is constant under perfect competition. B. marginal cost. C. net revenue. D. equal to marginal revenue and varies under perfect competition. 1 points    QUESTION 34
The slope of the total cost curve is: A. always negative. B. marginal revenue. C. constant under perfect competition. D. marginal cost.

Explanation / Answer

(23) (A)

Total cost = Fixed cost + Variable cost

(24) (C)

When marginal product increases, marginal cost decreases, and when marginal cost is decreasing, average variable cost is also decreasing.

(25) (C)

MC curve intersects both AVC and ATC curves from below at their minimum points. So, when MC is increasing, it is possible that ATC and AVC are still decreasing. But Marginal roduct must be decreasing.

(27) (C)

Total cost (TC) of 10th cake = ATC x Q = $6 x 10 = $60

TC of 9th cake = TC for 10th cake - MC for 10th cake = $60 - $24 = $36

ATC of 9th cake = TC / Q = $36 / 9 = $4

(28) (B)

In long run, there are no fixed costs and all costs are variable.

(29) (B)

If long run ATC falls (rises) with increase in output, there is economies (diseconomies) of scale.

(30) (C)

(31) (A)

In perfect competition, each firm is too small to have market pwoer and they are price takers.

(32) (D)

All firms sell identical goods.

(33) (A)

In perfect competition, Price = Marginal revenue

(34) (D)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.