**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...

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- Winter '07
- brown
- Economics, Progressive Tax, Marginal Tax Rate