# Quiz 8 - Quiz 8 Principles of...

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2/25/2018 Quiz 8: Principles of Microeconomics (ECN-130-2)(WEB)(2018SP) 1/21 * Some questions not yet graded Quiz 8 Due Feb 26 at 11:59pm Points 100 Questions 50 Available Feb 19 at 12am ­ Feb 26 at 11:59pm 8 days Time Limit None Allowed Attempts 2 Azempt History Attempt Time Score LATEST Attempt 1 87 minutes 88 out of 100 * Ð Correct answers are hidden. Score for this attempt: 88 out of 100 * Submitted Feb 25 at 8:20pm This attempt took 87 minutes. Take the Quiz Again 2 / 2 pts Question 1 At 1,000 units of output, total cost is \$42,000 and total variable cost is \$34,000. At 1,000 units of output, what is the value of average total cost, average variable cost, and average fixed cost, respectively? \$22; \$14; \$8 \$42; \$34; \$8 \$4.20; \$3.40; \$0.80 \$340; \$740; \$60 \$42; \$34; There is not enough information provided to determine the average fixed cost. 2 / 2 pts Question 2 Exhibit 21­5

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2/25/2018 Quiz 8: Principles of Microeconomics (ECN-130-2)(WEB)(2018SP) 2/21 Refer to Exhibit 21­5. Diseconomies of scale are present between points A and B. points A and C. points B and C. points B and D. points C and D. 2 / 2 pts Question 3 John purchases a baseball card for \$10 that turns out to be so rare that a collector offers to buy it from him for \$2,000. Instead, John decides to give the card to his sister (an avid baseball­card collector) as a birthday present. The opportunity cost of John's generosity is \$10, the purchase price. \$0, because at the time the decision is made, \$10 are sunk cost, i.e., at that point there is no cost to John of giving the card away. \$2,000, the amount offered by the collector. \$1,005, the average of \$10 and \$2,000. 2 / 2 pts Question 4 As long as there are __________ costs, __________ profit will be greater than __________ profit. implicit; accounting; economic explicit; accounting; economic
2/25/2018 Quiz 8: Principles of Microeconomics (ECN-130-2)(WEB)(2018SP) 3/21 implicit; economic; accounting explicit; economic; accounting 2 / 2 pts Question 5 If the LRATC curve is falling, then the law of diminishing marginal returns is operating. economies of scale are present. constant returns to scale are present. diseconomies of scale are present. 2 / 2 pts Question 6 The average­marginal rule states: when the marginal magnitude is rising, the average magnitude must also be rising. when the marginal magnitude is falling, the average magnitude must also be falling. when the marginal magnitude is below the average magnitude, the average magnitude falls. when the average magnitude rises, the marginal magnitude falls. a and b 2 / 2 pts Question 7 Situation 21­3 Gizmos, Inc. produces gizmos at an average total cost of \$22 and an average variable cost of \$14. The only fixed input used in the production of gizmos costs \$32,000. Refer to Situation 21­3. How many gizmos does Gizmos, Inc. produce?

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