Firms Production and Costs

A company could produce 100 units of a good for $320 or produce 101 units of the same good for

$324. The $4 difference in costs is

• A) the marginal benefit of producing the 101st unit.

• B) the marginal cost of producing the 101st unit.

• C) both the marginal benefit and the marginal cost of producing the 101st unit.

• D) neither the marginal benefit nor the marginal cost of producing the 101st unit.

In the above figure, the total fixed cost curve is curve

• A) B.

• B) A.

• C) C.

• D) none of the curves in the figure

In the above figure, the total variable cost curve is curve

• A) A.

• B) B.

• C) C.

• D) none of the curves in the figure

In the above figure, the total cost curve is curve

• A) A.

• B) B.

• C) C.

• D) none of the curves in the figure

In the above table, the total fixed cost is

• A) $30.

• B) $50.

• C) $20.

• D) $0.

In the above table, the total fixed cost at 3 units of output is

• A) $30.

• B) $60.

• C) $90.

• D) $0.

In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4

units is

• A) $1.20.

• B) $15.00.

• C) $5.00.

• D) $2.00.

In the above table, the average fixed cost of producing 15 units of output is

• A) $6.66.

• B) $0.50.

• C) $2.00.

• D) $8.66.

In the above table, the average variable cost of producing 14 units of output is

• A) $0.175.

• B) $7.86.

• C) $5.71.

• D) $10.00.

In the above table, the average total cost of producing 14 units of output is

• A) $5.71.

• B) $7.00.

• C) $7.86.

• D) $6.75.