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Understanding Total, Marginal, and Average Cost Quiz

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1. What is the Total Cost (TC) if the Fixed Costs (FC) are $200 and Variable Costs (VC) are $550?

2. What is Marginal Cost (MC)?

3. If the Total Cost of producing 10 units is $1000 and 11 units is $1040, what is the Marginal Cost?

4. What does Average Cost (AC) represent?

5. If the Total Cost of producing 50 units is $5000, what is the Average Cost?

6. When Marginal Cost is less than Average Cost, what happens to Average Cost?

7. When Marginal Cost is greater than Average Cost, what happens to Average Cost?

8. If the Marginal Cost is constant, what is the shape of its graph?

9. If the Total Cost of producing 5 units is $15 and of producing 6 units is $18, what is the Average Cost of producing 6 units?

10. What is the relationship between Total Cost, Marginal Cost, and Average Cost curves in the long run?