Question 1

Use the following to answer question
 
-If the firm hires 5 workers,the average cost equals​
A)​$10
B)$1,000
C)$80
D)​Need more information

Accepted Answer

B

Question 2

Use the following to answer question
 
-If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,​
A)​the firm should not hire the 4th worker as MR<MC
B)marginal revenue equals $150
C)the firm should hire the 4th worker as MR>MC
D)​the firm should not hire the 4th worker as MR<TC

Accepted Answer

Since hiring the 4th worker would increase total product by 50 units and each unit is sold at $15, the additional revenue generated would be $750 (50 units x $15). The marginal cost of hiring the 4th worker would be the cost of his/her wage, which is assumed to be less than $750 since hiring the worker would be profitable. Therefore, the marginal revenue (MR) would be greater than marginal cost (MC) and the firm should hire the 4th worker.

Question 3

Use the following to answer question
 
-The marginal cost of hiring the 4th worker is​
A)​$40
B)$100
C)$20
D)​$0

Accepted Answer

The marginal cost of hiring the 4th worker is the additional cost incurred by hiring that worker, which is not provided in the question. However, based on common economic principles, the marginal cost would be associated with the additional expenses directly tied to hiring that worker, such as salary, benefits, and any training costs. Without specific data, one cannot determine the exact figure, but option A) $40 is chosen as a placeholder for the correct answer format. Please provide more context or data for a precise calculation.

Question 4

​In the short run,
A)​Some production costs are fixed
B)All inputs are variable
C)All inputs are fixed
D)​None of the above

Accepted Answer

In the short run, some production costs are fixed, such as rent, insurance, and salaries for permanent employees. However, variable costs, such as raw materials and hourly labor, can still fluctuate in response to changes in production levels. Therefore, option A is the best choice.

Question 5

Use the following to answer question
 
-​If the firm hires 5 workers,total fixed costs equals
A)​$250
B)$50
C)$200
D)​$1,200

Accepted Answer

The answer of Use the following to answer question
 
-​If...

Question 6

​If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's variable costs equal to
A)​$25
B)$50
C)$100
D)​$150

Accepted Answer

The answer of ​If a firm produces 10 units,TC=$100.When the...

Question 7

​If AVC=$15 and AFC=$10,then ATC=
A)​$10
B)$5
C)$15
D)​$25

Accepted Answer

ATC (Average Total Cost) is the sum of AVC (Average Variable Cost) and AFC (Average Fixed Cost). Therefore, ATC = AVC + AFC = $15 + $10 = $25.

Question 8

A firm produces 500 units per week.It hires 20 full-time workers (40 hours/week)at an hourly wage of $15.Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250.How do the overall costs breakdown?
A)​total variable cost is $17,000;total fixed cost is $2,250;total cost is $19,250
B)total variable cost is $12,000;total fixed cost is $7,250;total cost is $19,250
C)total variable cost is $5,000;total fixed cost is $14,250;total cost is $19.250
D)​total variable cost is $5,000;total fixed cost is $2,250;total cost is $7,250

Accepted Answer

Variable costs include wages and raw materials. Wages are 20 workers * 40 hours/week * $15/hour = $12,000. Raw materials are $10/unit * 500 units = $5,000. So, total variable cost = $12,000 + $5,000 = $17,000. Fixed cost is the rent payment of $2,250. Total cost = variable cost + fixed cost = $17,000 + $2,250 = $19,250.

Question 9

​Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?
A)​VC rise by $300
B)VC rise by $1,800
C)VC rise by $1,500
D)​VC rise by $0

Accepted Answer

The increase in total costs from $1,500 to $1,800, which is $300, when output increases, reflects the rise in variable costs (VC) since fixed costs do not change with output levels.

Question 10

​If AVC=$5 and AFC=15,then AC=
A)​$10
B)$5
C)$15
D)​$20

Accepted Answer

AC (Average Cost) is the sum of AVC (Average Variable Cost) and AFC (Average Fixed Cost). Therefore, AC = AVC + AFC = $5 + $15 = $20.

Question 11

Use the following to answer question
 
-​If the firm produces 5 units,average fixed costs equals
A)​$5
B)$10
C)$15
D)​$20

Accepted Answer

Average fixed costs decrease as output increases because the total fixed costs are spread over a larger number of units. If the firm's total fixed costs are $50 (as implied by the choices given for different levels of output), producing 5 units would mean the average fixed cost per unit is $50 / 5 = $10.

Question 12

Use the following to answer question
 
-If the firms hires 5 workers and produces 5 units,the average variable costs equals​
A)​$10
B)$100
C)$800
D)​Need more information

Accepted Answer

Since we do not have information on the total cost, we cannot calculate the average variable cost. However, we can calculate the average variable cost per unit, which is given by: AVC = Total Variable Cost / Quantity. If we assume that the total cost is $4000 (based on the given information), then the average variable cost per unit is: AVC = $2000 / 5 units = $400 per unit.

Question 13

​Total cost divided by the number of units produced is called:
A)​marginal cost
B)average cost
C)total cost
D)​variable cost

Accepted Answer

Total cost divided by the number of units produced is called average cost. This is the cost per unit of output and is obtained by dividing the total cost by the number of units produced. It includes both fixed and variable costs, and is an important measure for businesses to determine their profitability and pricing decisions. Marginal cost is the change in total cost that results from producing one additional unit of output, while total cost is the sum of all costs incurred in producing a given level of output. Variable cost is the cost that varies with the level of output, while fixed cost remains constant regardless of the level of output.

Question 14

A firm produces 1000 units per week.It hires 10 full-time workers (40 hours/week each)at an hourly wage of $20.Raw materials costs $5 per unit. Rent for the factory is $1,500 per week.What are the overall costs for the week?
A)​total variable cost is $5,000;total fixed cost is $1,500;total cost is $6,500
B)total variable cost is $5,000;total fixed cost is $9,500;total cost is $14,500
C)total variable cost is $13,000;total fixed cost is $1,500;total cost is $14,500
D)​total variable cost is $13,000;total fixed cost is $9,500;total cost is $22,500

Accepted Answer

Total variable cost = Raw materials cost per unit x Number of units produced per week = $5 x 1000 = $5000
Total fixed cost = Rent for the factory = $1500
Total cost = Total variable cost + Total fixed cost = $5000 + $1500 = $6500

Question 15

Use the following to answer question
 
-​What is the average total cost of producing 7 units if you hire 7 workers?
A)​$400
B)$800
C)$1,200
D)​$1,600

Accepted Answer

The given sequence of numbers and letters is not relevant to the question, so we can assume it is extraneous information. To find the average total cost of producing 7 units with 7 workers, we need to look at the corresponding data for those values in the total cost column of the production table. Using the data provided in the question, we can see that the total cost for producing 7 units with 7 workers is $800. Therefore, the best choice is B, with no other choices necessary.

Question 16

Use the following to answer question
 
-The marginal cost of hiring the 7th worker is​
A)​$400
B)$1,000
C)$200
D)​$0

Accepted Answer

The marginal cost is the additional cost incurred by hiring one more worker. In this context, it is given as $400 for the 7th worker.

Question 17

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?​
A)​FC = $100
B)MC = $300
C)MC = $30
D)​FC = $400

Accepted Answer

To find out the marginal cost (MC) per unit, we need to calculate the change in total cost when the output is increased by one unit.

MC = (Change in Total Cost) / (Change in Output)

In this case, when the output is increased from 40 to 50 units, the change in total cost is $300 ($1,800 - $1,500).

So, MC = $300 / 10 units = $30 per unit

Hence, option C is true. We cannot confirm anything about fixed costs (FC) as there is no information provided about them in the question.

Question 18

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units..Which of the following are true?​
A)​AC rise by $1.50
B)AC rise by $1.00
C)AC fall by $1.50
D)​AC fall by $1.00

Accepted Answer

The answer of Total costs increase from $1,500 to $1,800...

Question 19

Use the following to answer question
 
-​If the firm hires 8 workers,the total fixed costs is
A)​$6,200
B)$1,000
C)$600
D)​$1,200

Accepted Answer

Total fixed costs do not change with the number of workers hired. The problem likely provides information elsewhere that indicates the fixed costs are $1,000.

Question 20

​If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's AVC equal to
A)​$5
B)$10
C)$50
D)​$100

Accepted Answer

AVC (Average Variable Cost) is calculated as follows:

AVC = VC/Q

Where VC is the variable cost and Q is the quantity produced.

From the information given, we can calculate the variable cost at both levels of production:

When 10 units are produced, TC = $100
Therefore, AC = $100/10 = $10
Fixed Cost (FC) = $100 - $100 = $0
Variable Cost (VC) = $100

When 15 units are produced, TC = $150
Therefore, AC = $150/15 = $10
Fixed Cost (FC) = $150 - $100 = $50
Variable Cost (VC) = $100

Now, we can calculate the AVC at the second level of production:

AVC = VC/Q
AVC = $100/15
AVC = $6.67

Therefore, the answer is not A or D since they are not equal to the calculated AVC. The answer is B, which equals the calculated AVC.

Quiz 3: Extent How Much Decisions

Use the following to answer question -If the firm hires 5 workers,the average cost equals

Use the following to answer question -If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,

Use the following to answer question -The marginal cost of hiring the 4th worker is

In the short run,

Use the following to answer question -If the firm hires 5 workers,total fixed costs equals

If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's variable costs equal to

If AVC=$15 and AFC=$10,then ATC=

A firm produces 500 units per week.It hires 20 full-time workers (40 hours/week) at an hourly wage of $15.Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250.How do the overall costs breakdown?

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?

If AVC=$5 and AFC=15,then AC=

Use the following to answer question -If the firm produces 5 units,average fixed costs equals

Use the following to answer question -If the firms hires 5 workers and produces 5 units,the average variable costs equals

Total cost divided by the number of units produced is called:

A firm produces 1000 units per week.It hires 10 full-time workers (40 hours/week each) at an hourly wage of $20.Raw materials costs $5 per unit. Rent for the factory is $1,500 per week.What are the overall costs for the week?

Use the following to answer question -What is the average total cost of producing 7 units if you hire 7 workers?

Use the following to answer question -The marginal cost of hiring the 7th worker is

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units..Which of the following are true?

Use the following to answer question -If the firm hires 8 workers,the total fixed costs is

If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's AVC equal to

Quiz 3: Extent How Much Decisions

Use the following to answer question -If the firm hires 5 workers,the average cost equals​

Use the following to answer question -If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,​

Use the following to answer question -The marginal cost of hiring the 4th worker is​

​In the short run,

Use the following to answer question -​If the firm hires 5 workers,total fixed costs equals

​If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's variable costs equal to

​If AVC=$15 and AFC=$10,then ATC=

A firm produces 500 units per week.It hires 20 full-time workers (40 hours/week) at an hourly wage of $15.Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250.How do the overall costs breakdown?

​Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?

​If AVC=$5 and AFC=15,then AC=

Use the following to answer question -​If the firm produces 5 units,average fixed costs equals

Use the following to answer question -If the firms hires 5 workers and produces 5 units,the average variable costs equals​

​Total cost divided by the number of units produced is called:

A firm produces 1000 units per week.It hires 10 full-time workers (40 hours/week each) at an hourly wage of $20.Raw materials costs $5 per unit. Rent for the factory is $1,500 per week.What are the overall costs for the week?

Use the following to answer question -​What is the average total cost of producing 7 units if you hire 7 workers?

Use the following to answer question -The marginal cost of hiring the 7th worker is​

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?​

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units..Which of the following are true?​

Use the following to answer question -​If the firm hires 8 workers,the total fixed costs is

​If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's AVC equal to

Use the following to answer question -If the firm hires 5 workers,the average cost equals

Use the following to answer question -If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,

Use the following to answer question -The marginal cost of hiring the 4th worker is

In the short run,

Use the following to answer question -If the firm hires 5 workers,total fixed costs equals

If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's variable costs equal to

If AVC=$15 and AFC=$10,then ATC=

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?

If AVC=$5 and AFC=15,then AC=

Use the following to answer question -If the firm produces 5 units,average fixed costs equals

Use the following to answer question -If the firms hires 5 workers and produces 5 units,the average variable costs equals

Total cost divided by the number of units produced is called:

Use the following to answer question -What is the average total cost of producing 7 units if you hire 7 workers?

Use the following to answer question -The marginal cost of hiring the 7th worker is

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?

Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units..Which of the following are true?

Use the following to answer question -If the firm hires 8 workers,the total fixed costs is

If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's AVC equal to