Micro Quiz #7

Use the information in the table to answer the following question. The marginal cost of producing the sixth bagel is: a) $15 b) $10 c) $20 d) $80

$20

If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is: a) $300.00 b) $50.00 c) $35.00 d) $30.00

$35.00

A farm can produce 1,000 bushels of wheat per year with 2 workers and 1,300 bushels of wheat per year with 3 workers. The marginal product of the third worker is: a) 1,300 bushels. b) 300 bushels. c) 2,300 bushels. d) 100 bushels.

300 bushels.

If marginal cost is greater than average total cost, then: a) average total cost is increasing. b) average total cost is decreasing. c) marginal cost is decreasing. d) average total cost is unchanged.

average total cost is increasing.

If you employ 20 workers in the production of picture frames, the way to determine the quantity of output these workers can produce is through a(n): a) budget constraint. b) profit function. c) indifference curve. d) total product curve.

total product curve.

At 150,000 units of output, a firm's marginal cost is $0.87 and its average total cost is $0.48. We can conclude that at this quantity of output the firm's average total cost curve is: a) vertical. b) horizontal. c) downward-sloping. d) upward-sloping.

upward-sloping.

A fixed factor of production is defined in the text as one: a) that can never produce more or less in any time period. b) that exists in nature and there is only so much of it. c) whose quantity cannot be changed in a particular period. d) that can be used for one thing only.

whose quantity cannot be changed in a particular period.

When marginal cost is below average variable cost, average variable cost must be: a) at its minimum. b) falling. c) rising. d) at its maximum.

falling.

The marginal cost curve intersects the average variable cost curve at: a) its maximum. b) its endpoint. c) no point; the curves don't intersect. d) its lowest point.

its lowest point.

When marginal cost is above average total cost, average total cost must be: a) at its maximum. b) rising. c) at its minimum. d) falling.

rising.