ECON 200
Fall
2005
Quiz 2
Maximum Points 50
Name : _____________________________
(Last,
First)
Questions Challenged
:
____________________________________________________
You can write on the question booklet.
Please return this question booklet after the quiz.
Use scantron sheet # 882 – ES to answer the following questions
.
The first
five
questions are based on the following information:
Pairs of
Pants produced
Total cost of
Producing pants
0
$100
1
$120
2
$138
3
$155
4
$167
5
$185
1. Total Fixed cost of producing pants is
(A) $100
(B) 0
(C) $20
(D) None of the above.
2. The average fixed cost of producing 5 pairs of pants is
(A) $20
(B) $37
(C) $40
(D) $100
3. The marginal cost of producing the first pair of pants is:
(A) $120
(B) $20
(C) $100
(D) None of the above.
4. The average variable cost of producing five pairs of pants is
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document(A) $17
(B) $20
(C) $35
(D) $37
5. The average total cost of producing five pairs of pants is
(A) $17
(B) $20
(C) $35
(D) $37
6. Increasing returns to scale in production means
(A) more than twice as much inputs is required to double output.
(B) less than twice as much inputs is required to double output.
(C) more than twice as much of only one input is required to double output.
(D) none of the above.
7. Assume that a firm’s production process is subject to increasing returns to scale over a broad
range of outputs. Then long run average costs over this output will tend to
(A) a increase.
(B) decline.
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '08
 LAL
 Microeconomics, Economics of production, average variable cost, average revenue

Click to edit the document details