Short Run Costs

To produce 10​ shirts, the total cost is​ $80; to produce 11​ shirts, the total cost is​ $99. The marginal cost of the 11th shirt is equal to A. ​$9. B. $19. C. $8. D. $99. E. $80.

$19

The table above gives costs at​ Jan's Bike Shop.​ Unfortunately, Jan's record keeping has been spotty. Each worker is paid​ $100 a day. Labor costs are the only variable costs of production. What is the total cost of producing 50​ bikes? A. ​$100 B. $500 C. ​$400 D. $200 E. ​$300

$400

Average total cost is equal to A. total cost​ ÷ quantity. B. average fixed cost​ + average variable cost. C. the change in total cost when output changes by one unit. D. Answers A and B are correct. E. Answers A and C are correct.

Answers A and B are correct

Which of the following always decreases when output​ increases? A. total cost B. marginal cost C. average variable cost D. average fixed cost E. total fixed cost

average fixed cost

When marginal cost is​ positive, total cost is​ ________ as output increases. A. constant B. decreasing C. negative D. undefined E. increasing

increasing

The total variable cost curve​ ________ because​ ________ as output increases. A. slopes​ downward; variable cost increases B. slopes​ upward; variable cost increases C. slopes​ downward; marginal cost increases D. slopes​ upward; marginal cost increases E. is​ horizontal; fixed cost does not change

slopes​ upward; variable cost increases

Marginal cost is equal to A. the change in fixed cost that results from a​ one-unit increase in output. B. the total cost of a​ firm's production. C. total cost minus fixed cost. D. the change in total cost that results from a​ one-unit increase in output. E. a cost that is not related to the quantity produced.

the change in total cost that results from a​ one-unit increase in output

Total cost includes A. the cost of variable resources only. B. the cost of fixed resources only. C. all explicit costs and all the implicit costs that actually must be paid using money. D. the cost of neither variable nor fixed resources. E. the cost of both variable and fixed resources.

the cost of both variable and fixed resources

An increase in the price of labor​ (a variable​ resource) shifts A. all cost curves upward. B. none of the cost curves. C. the fixed cost curves upward but leaves the variable cost curves unchanged. D. the variable cost curves upward but leaves the fixed cost curves unchanged. E. the marginal cost curve rightward.

the variable cost curves upward but leaves the fixed cost curves unchanged

Total cost is equal to the sum of A. total revenue and total cost. B. total variable cost and total fixed cost. C. total fixed cost and total product. D. total variable cost and total product. E. the marginal cost plus the total fixed cost plus the total variable cost.

total variable cost and total fixed cost

Chuck owns a factory that produces leather footballs. His total fixed cost equaled​ $86,000 last year. His total cost equaled​ $286,000 last year. Hence​ Chuck's A. incurred an economic loss. B. total variable cost equaled​ $200,000. C. total variable cost was zero. D. total variable cost equaled​ $372,000. E. None of the above answers is correct.

total variable cost equaled​ $200,000

In the above​ figure, curve A is the​ ________ curve and curve B is the​ ________ curve. A. total fixed​ cost; total variable cost B. total variable​ cost; total fixed cost C. total​ cost; total fixed cost D. total variable​ cost; total cost E. total​ cost; total variable cost

total​ cost; total variable cost

Because the amount of labor a firm employs can be​ changed, the cost of labor is known as A. maximum cost. B. variable cost. C. minimum cost. D. fixed cost. E. an unavoidable cost.

variable cost