{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# HW3 - ECO 201 Homework#3 50 Points Topics 14 through 19 The...

This preview shows pages 1–4. Sign up to view the full content.

ECO 201 – Homework #3 50 Points Topics 14 through 19 The homework must be completed by 10PM on Thursday, July 17. 1. Marginal revenue is: a. the change in total revenue divided by total output b. total revenue divided by total output c. total revenue minus total cost then divided by total output d. the change in total revenue divided by the change in price of output e. the change in total revenue divided by the change in total output 2. Which of the following will always equal zero when the firm's output level is zero? 3. The change in cost to the firm from producing one additional unit of output is: 4. As a firm increases its output in the short run, average fixed cost: 5. Which of the following is true about the relationships among various cost curves? a. when MC exceeds ATC, ATC must be rising b. when MC exceeds ATC, ATC could be rising or falling c. when ATC is falling, MC must exceed ATC d. when TC is rising, MC must exceed TC e. TC falls when AFC falls 6. Assume that a firm has a wage rate of \$300. If the firm's AVC is \$2, its APL is: 7. If Carol's Crayon Factory's price exceeds its average total cost in the short run, then:

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Use the following table for questions 8 through 14. K L q 4 0 0 4 1 60 4 2 115 4 3 165 4 4 210 4 5 250 4 6 285 Assume that each unit of capital employed costs \$200 and the wage rate is \$50. 8. What is the total fixed cost of producing 165 units? 9. What is the total variable cost of producing 165 units? a. \$50 b. \$100 c. \$150 d. \$200 e. \$250 10. What is the total cost of producing 165 units? 11. What is the average fixed cost of producing 165 units? 12. What is the average variable cost of producing 165 units? 13. What is the average total cost of producing 165 units? a. \$0.91 b. \$1.00 c. \$2.50 d. \$4.85 e. \$5.76
14. What is the marginal cost of producing 165 units? 15. When marginal cost exceeds marginal revenue:

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern