Question 1

Figure: Short-Run Costs II   (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.At six units of output, average total cost is approximately:

Accepted Answer

At six units of output, the point where MC intersects ATC, the average total cost is approximately $170.

Question 2

Figure: Short-Run Costs II
(Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 2 is the cost curve.

Accepted Answer

The answer of Figure: Short-Run Costs II
(Figure: Short-Run Costs II)...

Question 3

Figure and Table: Variable, Fixed, and Total Costs
(Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, the marginal cost when increasing production from 19 to 36 bushels of wheat is:

Accepted Answer

The marginal cost is the cost of producing one additional unit of output. From the table, when increasing production from 19 to 36 bushels, the variable cost goes from $225 to $420, which is an increase of $195. The marginal cost is then calculated by dividing the increase in variable cost by the increase in output: $195 / 17 bushels = $11.76/bushel. Therefore, the answer is B.

Question 4

Figure: Short-Run Costs II
(Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.At six units of output, marginal cost is approximately:

Accepted Answer

The answer of Figure: Short-Run Costs II
(Figure: Short-Run Costs II)...

Question 5

Figure and Table: Variable, Fixed, and Total Costs   (Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, when 96 bushels of wheat is produced, the average fixed cost is ,
Average variable cost is ________, and average total cost is _.

Accepted Answer

From the table, we can see that when 96 bushels of wheat are produced, the total cost is $200, the fixed cost is $100, and the variable cost is $100. Therefore, the average fixed cost is $100/96 = $1.04, the average variable cost is $100/96 = $1.04, and the average total cost is $200/96 = $2.08. To convert these costs into per bushel costs, we divide each average cost by the number of bushels produced, which is 96. This gives us an average fixed cost of $1.04/96 = $0.0108 per bushel, an average variable cost of $1.04/96 = $0.0108 per bushel, and an average total cost of $2.08/96 = $0.0217 per bushel. To round to the nearest cent, we get an average fixed cost of $0.01 per bushel, an average variable cost of $0.01 per bushel, and an average total cost of $0.02 per bushel. Thus, the answer is C.

Question 6

Figure: Short-Run Costs  (Figure: Short-Run Costs) Look at the figure Short-Run Costs.B is the cost curve.

Accepted Answer

The answer of Figure: Short-Run Costs  (Figure: Short-Run Costs)...

Question 7

Figure: Short-Run Costs   (Figure: Short-Run Costs) Look at the figure Short-Run Costs.C is the cost curve.

Accepted Answer

The answer of Figure: Short-Run Costs   (Figure: Short-Run...

Question 8

Figure: Short-Run Costs   (Figure: Short-Run Costs) Look at the figure Short-Run Costs.The vertical difference between curve B
And curve C at any quantity of output is:

Accepted Answer

The answer of Figure: Short-Run Costs   (Figure: Short-Run...

Question 9

Figure: Short-Run Costs II   (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 1 crosses the average variable cost curve at:

Accepted Answer

The answer of Figure: Short-Run Costs II   (Figure:...

Question 10

Figure: Short-Run Costs   (Figure: Short-Run Costs) Look at the figure Short-Run Costs.A is the cost curve.

Accepted Answer

The curve labeled "A" in the figure represents the marginal cost curve, as it shows the additional cost of producing each additional unit of output. The curve labeled "B" represents the average variable cost curve, and the curve labeled "C" represents the average total cost curve. The curve labeled "D" represents the total cost curve.

Question 11

Figure: Short-Run Costs II  (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 1 crosses the average total cost curve at:

Accepted Answer

The answer of Figure: Short-Run Costs II  (Figure: Short-Run...

Question 12

(Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, the marginal cost when increasing production from 51 to 64 bushels of wheat is:

Accepted Answer

From the table, we can see that when production is 51 bushels of wheat, the total cost is $1,140 and when production is 64 bushels, the total cost is $1,350. The difference in total cost is $210.

From the figure, we can see that the slope of the line between 51 and 64 bushels of wheat is approximately $15.38. This means that the marginal cost of producing an additional bushel of wheat when production is increased from 51 to 64 bushels is $15.38.

Therefore, the best choice is B, $15.38.

Question 13

Figure: Short-Run Costs II   (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 3 is the cost curve.

Accepted Answer

The answer of Figure: Short-Run Costs II   (Figure:...

Question 14

Figure: Short-Run Costs II
(Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 1 is the cost curve.

Accepted Answer

Curve 1 in the figure represents the cost curve, which is always tangent to the lowest point of the average variable cost (AVC) and average total cost (ATC) curves, and intersects the marginal cost (MC) curve at its minimum point. Therefore, the curve labeled as 1 is the marginal cost curve.

Question 15

Kaile Cakes produces 10 cakes per day.The marginal cost of the tenth cake is $24, and average total cost of 10 cakes is $6.The average total cost of 9 cakes is:

Accepted Answer

The marginal cost is the cost of producing one additional unit. In this case, it is the cost of producing the 10th cake. Therefore, the total cost of producing 10 cakes is 9 times the average total cost of 9 cakes plus the marginal cost of the 10th cake.

Average total cost of 10 cakes = Total cost of producing 10 cakes / 10 = $6
Marginal cost of the 10th cake = $24

Total cost of producing 10 cakes = Average total cost of 10 cakes * 10 = $6 * 10 = $60
Total cost of producing 9 cakes = Total cost of producing 10 cakes - Marginal cost of 10th cake = $60 - $24 = $36

Average total cost of 9 cakes = Total cost of producing 9 cakes / 9 = $36 / 9 = $4

Question 16

Figure and Table: Variable, Fixed, and Total Costs   (Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, when 51 bushels of wheat is produced, the average fixed cost is ,
Average variable cost is ________, and average total cost is _.

Accepted Answer

The answer of Figure and Table: Variable, Fixed, and Total...

Question 17

Figure: Short-Run Costs   (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At seven units of output, average fixed cost is approximately ________, and average variable cost is approximately _.

Accepted Answer

At seven units of output, average fixed cost is approximately $40 (the point where the AFC curve intersects the y-axis). Average variable cost is approximately $100 (the point where the AVC curve intersects the total cost curve). Therefore, the correct answer is C.

Question 18

Figure and Table: Variable, Fixed, and Total Costs  (Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, the marginal cost when increasing production from 84 to 91 bushels of wheat is:

Accepted Answer

The answer of Figure and Table: Variable, Fixed, and Total...

Question 19

In the short run, as output gets larger and larger:

Accepted Answer

In the short run, as output increases, the average fixed cost decreases, causing the average total cost to get closer to the average variable cost.

Question 20

Cindy operates Birds-R-Us, a small store manufacturing and selling 100 bird feeders per month.Cindy's monthly total fixed costs are $500, and her monthly total variable costs are $2,500.If for some reason Cindy's fixed cost fell to $400, then her:

Accepted Answer

The average total costs would decrease because the fixed costs have decreased, reducing the overall total costs when averaged over the 100 bird feeders.

Quiz 11: Behind the Supply Curve: Inputs and Costs

Figure: Short-Run Costs II (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.At six units of output, average total cost is approximately:

Figure: Short-Run Costs II (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 2 is the cost curve.

Figure and Table: Variable, Fixed, and Total Costs (Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, the marginal cost when increasing production from 19 to 36 bushels of wheat is:

Figure: Short-Run Costs II (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.At six units of output, marginal cost is approximately:

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.B is the cost curve.

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.C is the cost curve.

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.The vertical difference between curve B And curve C at any quantity of output is:

Figure: Short-Run Costs II (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 1 crosses the average variable cost curve at:

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.A is the cost curve.

Figure: Short-Run Costs II (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 1 crosses the average total cost curve at:

(Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, the marginal cost when increasing production from 51 to 64 bushels of wheat is:

Figure: Short-Run Costs II (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 3 is the cost curve.

Figure: Short-Run Costs II (Figure: Short-Run Costs II) Look at the figure Short-Run Costs II.Curve 1 is the cost curve.

Kaile Cakes produces 10 cakes per day.The marginal cost of the tenth cake is $24, and average total cost of 10 cakes is $6.The average total cost of 9 cakes is:

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At seven units of output, average fixed cost is approximately ________, and average variable cost is approximately _.

Figure and Table: Variable, Fixed, and Total Costs (Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, the marginal cost when increasing production from 84 to 91 bushels of wheat is:

In the short run, as output gets larger and larger:

Cindy operates Birds-R-Us, a small store manufacturing and selling 100 bird feeders per month.Cindy's monthly total fixed costs are $500, and her monthly total variable costs are $2,500.If for some reason Cindy's fixed cost fell to $400, then her: