MCQ 32 - 1 As a shoe Co produces more shoes the ATC of each shoe produced decreases This is a Total fixed costs are decreasing as more shoes are

MCQ 32 - 1 As a shoe Co produces more shoes the ATC of each...

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1. As a shoe Co produces more shoes, the ATC of each shoe produced decreases. This is: a. Total fixed costs are decreasing as more shoes are produced b.AVC is decreasing as more shoes are produced c.There are scale economiesd.TVC is decreasing as more shoes are produced 2. Company’s total production costs depend on the number of systems produced according to the following equation: TC = $10,000,000 + $2,000 quantity produced. Which is false? a.There 3. Mom purchased 5 bananas and is considering the purchase of a sixth. It is likely she will purchase the sixth if a. Marginal value she gets from the sixth banana is lower than its price 4. According to the law of demand a. demand increase, prices go up b. supply increases, demand 5. Marlboro cigarettes and Budweiser ar complements, if Marlboro increased its prices, what would happen to the Budweiser market? a. Demand would rise, Budweiser would reduce price b. Demand fall, Budweiser reduce pricec. Demand fall, Budweiser increase price d. Demand rise, Busweiser increase supply 6. Local watering hole increased price of a pint of Guinness by 20%, it estimates the number of MBA students purchasing Guinness would decrease by 4%, bases on this data a. Total revenues

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