Which of the following is most likely to be a fixed

21. Which of the following is most likely to be a fixed cost?
A. shipping charges
B. property insurance premiums
C. wages for unskilled labour
D. expenditures for raw materials
22. If you know that when a firm produces 10 units of output, total costs are $1,030 and average fixed
costs are $10, then total fixed costs are:

23. Refer to the graph. Total fixed cost is measured by:
24. Which of the following is most likely to be a variable cost?
25. Refer to the data. The total variable cost of producing 5 units is:
Output Total cost
0 $24
1 33
2 41
3 48
4 54
5 61
6 69
A. $61.
B. $48.
C. $37.
D. $24.
7

26. Total cost minus total variable cost equals:
27. If the marginal product of a variable factor of production at first increases and then decreases as the
output of the firm is increased:
28. At an output of 1,000 units per year, a firm's variable costs are $5,000 and its average fixed costs are
$3. Its total costs per year are:
29. Refer to the data. If the firm closes down and produces zero units of output, its total cost is:
Output
Average
fixed
cost
Average
variable
cost
1 $50.00 $100.00
2 25.00 80.00
3 16.67 66.67
4 12.50 65.00
5 10.00 68.00
6 8.37 73.33
7 6.14 80.00
8 6.25 86.50
A. $0.
B. $50.
C. $100.
D. $150
8

30. Refer to the diagram. This firm's average fixed costs (AFC) are:
31. At output level Q total variable cost is:
9

32. At output level Q total fixed cost is:
10