Microeconomics - Quiz 10

(Table: Cost Data for Handbags at Horatio's Handbag Factory) Use Table: Cost Data for Handbags at Horatio's Handbag Factory. The average fixed cost of producing 5 handbags is:

$10.

(Table: Costs of Wedding Cakes) Use Table: Costs of Wedding Cakes. Assume that fixed costs are $10. What is the marginal cost of the fifth wedding cake?

$12

Suppose the average total cost of producing 9 surgical masks is $6, while the average total cost of producing 10 surgical masks is $7. What is the marginal cost of producing the 10th surgical mask?

$16.00

(Figure: Short-Run Costs for Wallets) Use Figure: Short-Run Costs for Wallets. At 6 wallets, average total cost is approximately:

$170.

(Table: Costs of Wedding Cakes) Use Table: Costs of Wedding Cakes. Assume that fixed costs are $10. What is the average fixed cost of 5 wedding cakes?

$2

Orville's Ocular Paradise produces 10 pairs of sunglasses. Its average variable cost is $30, and its average fixed cost is $5. The average total cost of producing 10 pairs of sunglasses is:

$35.

The rent for Emmett's football memorabilia store is $4,600 per month. Emmett pays his staff $15 per hour, and his monthly electricity bill averages $700, depending on his total hours of operation. Emmett's fixed costs of production equal:

$4,600 per month.

(Table: Cost Data for Handbags at Horatio's Handbag Factory) Use Table: Cost Data for Handbags at Horatio's Handbag Factory. The average total cost of producing 5 handbags is:

$48.

(Table: Tatiana's Production Function for Cherries) Use Table: Tatiana's Production Function for Cherries. The marginal product of the fourth worker is _____ cherries.

5

If marginal cost is LESS than average total cost, then _____ cost is _____.

average total; decreasing

(Figure: Short-Run Costs for Wallets) Use Figure: Short-Run Costs for Wallets. Curve 3 is the _____ cost curve.

average variable

(Figure: The Cost Curves for Charlie's Cookie Confections) Use Figure: The Cost Curves for Charlie's Cookie Confections. The curve labeled X represents the firm's _____ cost curve.

average variable

(Table: Tatiana's Production Function for Cherries) Use Table: Tatiana's Production Function for Cherries. As she hires more labor, Tatiana's production function shows that the number of cherries picked increases at a decreasing rate because of:

diminishing returns.

The _____ is the time period over which all inputs can be varied.

long run

Average variable cost is:

total variable cost divided by quantity.