Which of the following is false a the afc curve can

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3. Which of the following is FALSE? A) The AFC curve can never rise with output. B) The marginal cost curve begins to increase before the average variable cost curve. C) The ATC always lies above the AVC. D) None of the above. All are true. Plant Size Quantity Total Cost ($) A 1 B 10 C 100 900 D 200 2000 E 500 5500 F 1000 15000 10 80
4. Given the table below calculate the average variable cost of producing three (3) units of the good? Output Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Average total cost Marginal cost 1 $ 500 $80- $580 $500 $80 $20 2 $ 500 $ 100 $600 $250 $50 $300 $20 3 $ 500 $120 $620 $166.67 $40 $206.67 $20 4 $ 500 $140 $ 640 $125 $35 $160 $20 5 $500 $160 $660 $100 $32 $580 $132
5. In the table, diminishing marginal returns begin Input Total Product 0 1 10 2 35 3 70 4 120 5 165 6 175 7 170 8 155 0
6. The MC curve goes through the minimum point of which of the following curves?
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7. The MC curve eventually rises as output increases in the short run because of A) the law of diminishing returns B) diseconomies of scale C) constant returns to scale D) economies of scale
8. If a firm is unable to vary any of the factors of production it is operating in
9. Where does diminishing returns begin? Output Total Product 0 --- 1 2 3 10 4 5 -1 6 -9 3 8 6
10. Where does diminishing marginal returns to labor begin? Total Workers Total Output 0 --- 1 2 17 3 22 4 25 5 22 6 -17 7 -10 8
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11. What explains why the SR AVC curve eventually increases as output rises? A) diseconomies of scale B) the law of diminishing returns C) economies of scale D) constant returns to scale
12. A firm doubles its output in the long-run and at the same time the per-unit (average) cost of production remains unchanged. We can conclude that the firm is
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