Exam 12 - Question 1 of 15 0.5/ 0.5 Points The only...

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Question 1 of 15 0.5/ 0.5 Points The only variable input used in producing bicycles in a small factory is labor. Currently 4 workers are employed; each works 40 hours per week and is paid $10 per hour. If fixed cost is $2,000 per week and total output is 10 bicycles per week, then average cost is: A. $16 0. B. $26 0. C. $20 0. D. $36 0. Answer Key: D Question 2 of 15 0.0/ 0.5 Points The minimum point of the average total cost curve always occurs at a larger output level than the minimum point of the average variable cost curve because: A. marginal cost is falling. B. average fixed costs are rising. C. average fixed costs are falling. D. marginal cost is rising. Answer Key: C Question 3 of 15 0.5/ 0.5 Points
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If marginal cost is less than average variable cost, then average variable cost will: A. increase as output rises. B. decrease as output rises. C. remain constant as output rises. D. equal average total cost. Answer Key: B
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This note was uploaded on 12/04/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at North Shore Community College.

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Exam 12 - Question 1 of 15 0.5/ 0.5 Points The only...

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