7B Web Quiz.docx

# 7B Web Quiz.docx - (7B Web Quiz 1 What is the main...

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(7B Web Quiz) 1) What is the main difference between the long run and the short run? Ans: In the Short Run the size of the factory (plant) cannot be changed. 2) Which of the following is a variable cost? Ans: Labor 3) DEFINE: Which graph shows the axes labeled correctly for a short run cost graph?

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4) See Table. What are the Total Fixed Costs (TFC)? Ans: \$20 5) See Graph. What are the Total Fixed Costs (TFC)? Ans : \$20
DESCRIBE: The TC and TVC curves at first increase at a decreasing rate (get flatter as quantity increases) and then later increase at an increasing rare (get steeper). Why? Ans: At first: specialization and teamwork later: getting crowded 7) What are the Average Total Costs (ATC) when quantity equals 4? Ans: \$25 8) What are the average Variable costs (AVC) when quantity equals 4? Ans: \$20

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9) What are the Average Fixed Costs (AFC) when quantity equals 4? Ans: \$5 10) What are the Marginal Costs (MC) of the fourth unit? Ans: \$30
11) What are the TC when quantity equals 4?

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• Summer '14
• Economics of production, TFC, marginal costs

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