Chapter_8 - YourResultsfor:"SelfStudyQuiz"...

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 8 > Self-Study Quiz Date/Time  Submitted: February 7, 2012 at 10:15 AM  (UTC/GMT) Summary of Results 37% Correct  of 35 Scored items: 13 Correct:  37% 22 Incorrect:  63% 3 questions not scored. 35 scored questions. More information about scoring 1. Which of the following cost  measures does not depend on the  level of output chosen? Your Answer: Total cost. Correct Answer: Fixed cost.   Incorrect. A portion of total cost depends on the level of output chosen. 2. If fixed cost at Q = 100 is $170, then: Your Answer: fixed cost at Q = 0 is less than $17 Correct Answer: fixed cost at Q = 200 is $170.   Incorrect. Fixed cost is the same regardless of the level of output produced. 3. Firms have no control of fixed costs  in the short run; they have no choice  but to pay them. For this reason, 
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fixed costs are sometimes called: Your Answer:   Correct. Firms have no control over fixed costs in the short run. For this reason, fixed costs are  sometimes called sunk costs. 4. Average fixed cost : Your Answer: Increases as output increases. Correct Answer: Decreases as output increases.   Incorrect. Average fixed cost, which is TFC/Q, continuously decreases as output (and the  denominator of that fraction) increases. 5. Refer to the figure below. A  phenomenon often called spreading  overhead is better illustrated by one  of the graphs below. Which one? Your Answer: Both graphs illustrate that phenom Correct Answer: The graph on the right.
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  Incorrect. Average fixed cost falls as output rises, because the same total is being spread over,  or divided by, a larger number of units. This phenomenon is sometimes called spreading  overhead. 6. Which of the following curves  embodies information about both  input prices and technology? Your Answer:   Correct. The total variable cost curve embodies information about both factor, or input, prices  and technology. It shows the cost of production using the best available technique at each  output level given current factor prices. 7.
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Chapter_8 - YourResultsfor:"SelfStudyQuiz"...

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