Choose the best answer. 1. The economic relationship is ... a. Total profit = [Px O) -(TC-TVC) b. Total profit = TR - TFC-TVC C. Total profit = (Px Q) -[TC-TFC) d. None of the above 2. Variable costsare: a. Multiplied by fixed costs. b. Costs that change with the level of production. c. Defined as the change in total cost resulting from the production of an additional unit of output. d. Both b and c 3. The marginal cost, average total cost, and average variable cost curves is u-shaped because .. a. Law of diminishing marginal returns b. AFC is downward sloping and TC is u-shaped. C. AFC is downward sloping and variable costs increase over the long run. d. TFC is horizontal while TVC is upward sloping. 4. Which is NOT a fixed cost? a. purchase of land b. cost of equipment c. cost of truck d. a worker's wage of $15 per hour 5. A firm has average fixed costs of $3 and average variable costs of $2.50. Its output is 400 units. What is the total cost of the firm? 4. $1200 b. $1000 c. $2200 d. $200 Number of Quantity of Output Number Marginal Product of Workers of Cookies produced) Labor 12 6. Using the chart above, at 4 workers, the Marginal Product would be: 12 b. 3 5 d