ECON-5315 - Ch 8 Quiz
Which of the following statements is TRUE?
Fixed costs are sunk costs.
Which of the following statements is TRUE?
In the long run all inputs are variable.
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000. What is AVC at its minimum?
$25
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000. When the firm uses 100 units of labor, what is marginal cost at this level of output?
$25
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000. When the firm uses 60 units of labor, what is average total cost at this output?
$66.67
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000. At what output does the firm reach minimum average variable cost?
8,000
Which of the following statements is TRUE about quasi-fixed inputs?
None is purchased when output is zero.
Marginal cost...
is less than average cost when average cost is decreasing.
If average product is decreasing, then marginal product...
must be less than average product.
If a firm is producing a given level of output in a technically-efficient manner, then it must be the case that...
this output level is the most that can be produced with the given levels of inputs.
