Sample quiz- 2

Sample quiz- 2 - First Name _ (print) Student ID # _ Last...

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First Name _________________ (print) Last Name ________________ (print) Student ID # _____________________ Signature _______________________ Recitation for ECON 2010-500 Quiz 2 (Fall 2007) Use the following information to answer questions 1 through 5. Teacher’s Helper is a small company that has a subcontract to produce instructional materials for disabled children  in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a  month and has leased computer equipment that costs $480 a month. 1. What is the marginal cost of creating the tenth instructional module in a given month? a. $900 b. $1,250 c. $2,500 d. $3,060 Output  (Instructional  Modules per  Month) Fixed Costs Variable  Costs Total Cost Average  Fixed Cost Average  Variable  Cost Average  Total Cost Marginal  Cost 0 1,080 1 1,080 400 1,480 400 2 965 450 3 1,350 2,430 4 1,900 475 5 2,500 216 6 4,280 700 7 4,100 8 5,400 135 9 7,300 10 10,880 980
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2. What is the average variable cost for the month if six instructional modules are produced? a. $180 b. $533.33 c. $700 d. $713.33 3. What is the average fixed cost for the month if nine instructional modules are produced? a.
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Sample quiz- 2 - First Name _ (print) Student ID # _ Last...

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