1. which of the following is not considered variable cost in their short-run period?

a. cost of raw materials

b. water and electric bills

c. transportation expense

d. commission of agent

2. in the table below, what is the average product when the production reaches the third stage?

LaborTotal Product Average ProductMarginal Product

112

22010

34013

562

67311

757

a. 7.50

b. 8.14

c. 9.36

d. 9.55

3. If the Mr. Defend Sore, seller of a Iver-Micmic, wants to increase his sales by 15% by how many percent will he have to decrease the price if he knows that the price elasticity coefficient of demand for the product is -2?

a. 7.5%

b. .75%

c. .075%

d. 75%

4. TRUE or FALSE: break-even is minimize when price is greater than average variable cost but is less than average total cost

a. true

b. false

c. maybe

d. uncertain

5. TRUE or FALSE: Nothing says when diminishing returns will start to take effect.

a. true

b. false

c. maybe

d. uncertain