ECON-102-Fall-2012-Exam-3-Version_A_and_C

A 78 b 20 c 40 d 92 7 darren runs a

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Unformatted text preview: Cyd knows the average cost of producing 7 scones is $10, while the average cost of producing 8 scones is $12. What is the marginal cost of the 8th unit? a. $7 b. $26 c. $70 d. $4 2 ECON 102 NAME: _______________________ FALL 2012 EXAM- 3 VERSION A 6. If Jakob knows the marginal cost of the first sports jersey is $20, the marginal cost of the second sports jersey is $32, and the marginal cost of the third jersey is $40, what is the total variable cost of producing three jerseys? a. $78 b. $20 c. $40 d. $92 7. Darren runs a barbershop with average fixed costs equal to $80 per day and a total output of 70 haircuts per day. What is his weekly total fixed cost if he is open six days per week? a. $33,600 b. $5,200 c. $80 d. $18,000. 8. Cindy operates Birds- R- Us, a small store manufacturing and selling 200 bird feeders per month. Cindy's monthly total fixed costs are $700, and her monthly total variable costs are $2,000. If for some reason Cindy's fixed cost increased to $1,000, then her: a. average fixed costs would increase. b. marginal costs would increase. c. average variable costs would increase. d. All of the choices are correct. 9. John uses funds from a savings account to pay off his equipment loan. The interest rate John pays...
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This note was uploaded on 01/27/2014 for the course ECON 102 taught by Professor Kim during the Fall '08 term at University of Illinois, Urbana Champaign.

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