31) With fixed costs of $400, a firm has average total costs of $3 and average v

Question

31) With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output is:
a) 200 units. b) 400 units. c) 800 units. d) 1,600 units.

32) The reason the marginal cost curve eventually increases as output increases for the typical firm is because:
a) of diseconomies of scale.
b) of minimum efficient scale.
c) of the law of diminishing returns.
d) normal profit exceeds economic profit.

33) If the short-run average variable costs of production for a firm are rising, then this indicates that:
a) average total costs are at a maximum.
b) average fixed costs are constant.
c) marginal costs are above average variable costs.
d) average variable costs are below average fixed costs.

34) If a more efficient technology was discovered by a firm, there would be:
a) an upward shift in the AVC curve. b) a downward shift in the AFC curve.
c) an upward shift in the AFC curve. d) a downward shift in the MC curve.

35) The firm's short-run marginal-cost curve is increasing when:
a) marginal product is increasing. b) total fixed cost is increasing.
c) marginal product is decreasing. d) average fixed cost is decreasing.

Explanation / Answer

the answer will be31=c 32=b 33=a 34=d 35=c

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