303ex3-PQs - ECON 303 Practice Questions for Exam 3 1...

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ECON 303 Practice Questions for Exam 3 1. Consider the production function represented by the following table. Suppose total fixed cost (TFC) = $200 and labor cost (w) = $50 per day. L Q 0 0 1 10 2 22 3 31 4 35 5 34 a. What is the total fixed cost at Q = 0? ( Answer: $200) b. What is the total variable cost at Q = 0? ( Answer: $0) c. What is the total cost at Q = 0? ( Answer: $200) d. What is the total fixed cost at Q = 10? ( Answer: $200) e. What is the total variable cost at Q = 10? ( Answer: $50) f. What is the total cost at Q = 10? ( Answer: $250) g. What is the average fixed cost at Q = 10? ( Answer: $20) h. What is the average variable cost at Q = 10? ( Answer: $5) i. What is the average cost at Q = 10? ( Answer: $25) j. What is the marginal cost at Q = 10? ( Answer: $5) 2. Suppose the production function represented by the following table. Suppose total fixed cost (TFC) = $100 and labor cost (w) = $20 per day. L Q 0 0 1 5 2 15 3 20 4 23 5 22 a. What is the total fixed cost at Q = 0? ( Answer: $100) b. What is the total variable cost at Q = 0? ( Answer: $0) c. What is the total cost at Q = 0? ( Answer: $100) d. What is the total fixed cost at Q = 20? ( Answer: $100) e. What is the total variable cost at Q = 20? ( Answer: $60) f. What is the total cost at Q = 20? ( Answer: $160) g. What is the average fixed cost at Q = 20? ( Answer: $5) h. What is the average variable cost at Q = 20? ( Answer: $3) i. What is the average cost at Q = 20? ( Answer: $8) j. What is the marginal cost at Q = 20? ( Answer: $4) Page 1 of 5
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ECON 303 Practice Questions for Exam 3 3. Consider a cost function C(Q) = 100 + 10Q + Q 2 . What is: a. the average fixed cost of producing 20 units of output? ( Answer: $5) b. the average variable cost of producing 10 units of output? ( Answer: $20) c. the average cost of producing 5 units of output? ( Answer: $35) d. the marginal cost of producing 2 units of output? ( Answer: $14) 4. Consider a cost function C(Q) = 100 + 10Q + Q 2 . What is: a. the average fixed cost of producing 10 units of output? ( Answer:
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This note was uploaded on 10/31/2010 for the course BUSINESS S ECON taught by Professor Xx during the Spring '10 term at VCU.

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303ex3-PQs - ECON 303 Practice Questions for Exam 3 1...

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