8 Quiz - 1. Refer to the above graph. Which one of the...

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1. Refer to the above graph. Which one of the following would cause a move from point e on short-run average total cost curve ATC 2 to point b on short-run average cost curve ATC 1 ? A) a decline in total fixed costs B) diminishing marginal returns C) an increase in the wage rate D) increasing marginal returns 2. The minimum efficient scale of a firm: A) is realized somewhere in the range of diseconomies of scale. B) occurs where marginal product becomes zero. C) is in the middle of the range of constant returns to scale. D) is the smallest level of output at which long-run average total cost is minimized. 3. Fixed cost is: A) the cost of producing one more unit of capital, say, machinery. B) any cost which does not change when the firm changes its output. C) average cost multiplied by the firm's output. D) usually zero in the short run. 4. Answer the next question(s) on the basis of the following cost data:
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Refer to the above data. The marginal cost of producing the sixth unit of output is:
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This note was uploaded on 04/22/2010 for the course ECO 112 taught by Professor Smith during the Spring '10 term at Bowling Green.

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8 Quiz - 1. Refer to the above graph. Which one of the...

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