This preview shows page 1. Sign up to view the full content.
Unformatted text preview: curve crosses the ATC (Average Total Cost) curve. b) What is the total cost of producing 20 units of output? ______; 30 units of output? ______; 40 units of output? ______ 3) True False - clearly circle either T (true) of F (false) a) T or F IF Economic Cost > Accounting Cost, THEN Economic Profit < Accounting Profit. b) T or F Economists and Accountants both consider interest paid to bondholders as a cost c) T or F Marginal Cost = the increase in Total Cost when output increases by one unit. d) T or F IF an increase in output causes Marginal Cost to increase, THEN this increase in output will also cause Average Total Cost to increase. ATC $/Q Q - output 35 25 30 20 30 40...
View Full Document
This note was uploaded on 03/11/2008 for the course EC 201 taught by Professor Brown during the Winter '07 term at Cal Poly Pomona.
- Winter '07
- Marginal Tax Rate