Chapter 7 Cost of Production
At 20 units of output in Table 21.2, the average variable cost is
1.10
The marginal cost per unit between 20 and 30 units of output in Table 21.1 is
1.80
The average fixed cost (AFC) curve
Declines as long as output increases.
Marginal cost
Is the change in total cost associated with a one-unit increase in production
Which of the following costs not change when output changes in the short run
fixed costs
Average total cost is equal to
tt divided by the quantity produced
Average fixed cost at 20 units of output in Table 21.2 is
2
The marginal cost curve intersects the minimum of which of the following cost curves?
ATC.
The most desirable rate of output for a firm is the output that
Maximizes total profit
Which of the following is most likely a fixed cost?
Property taxes
Marginal cost is equal to
The change in total costs divided by the change in quantity produced.
Profit is
The difference between total revenue and total cost
Which of the following is most likely a fixed cost?
The rent for a factory.
Diseconomies of scale are reflected in
The upward-sloping segment of the long-run average total cost curve.
The sum of fixed cost and variable cost at any rate of output is
Total cost
Changes in short-run total costs result in changes from
Total cost divided by quantity produced.
Economics of scale are reductions in average
Total cost that result from. using operations of larger size.
