\fConsider the following cost data: The variable cost of producing 5 units of output is: Multiple Choice 0355 \fAverage cost ($) Output Refer to the figure above. To produce output Ox, in the long run the firm should choose a plant of size: Multiple Choice O #5 O #2\fImplicit and explicit costs are different in that: Multiple Choice O implicit costs refer to nonexpenditure costs and explicit costs to out-of-pocket costs O implicit costs are relevant only in the short run O explicit costs are relevant only in the long run O explicit costs refer to the nonexpenditure costs and implicit costs to out-of-pocket costs O explicit costs are relevant only in the short runConsider the following income statement for the first year of operations for Anna's Sandwich Shop. Income Statement: Anna's Sandwich Shop Revenue Expenses Total sandwich sales $25,600 Bread $2,600 Condiments 850 Vegetables 450 Meat 950 Rent 2500 nsurance 1200 Total Revenue $25,600 Total Expenses $8,550 Anna withdrew $25,000 from her savings account last year to open the business after quitting her job as an equity analyst. Her annual salary was $125,000 and her bank pays 4.5% interest on saving accounts. An accountant would calculate Anna's profit to be:Decreasing returns to scale occur when a business: Multiple Choice O increases output by the same percentage as it increases all inputs for a certain product O increases inputs in order to produce a smaller percentage increase in output O increases inputs by a given percentage to increase output by a higher percentage O decreases both inputs and output simultaneously O decreases inputs to produce a higher percentage increase in outputConstant returns to scale result when: Multiple Choice O specialized machinery is used in production O output increases by a smaller percentage than an increase in inputs O output increases by a greater percentage than an increase in inputs O making a product involves repeating exactly the same tasks every time the item is made O a business uses exactly the same total amount of inputsIf, in the production of boxer shorts, labour is the variable input and sewing machinery is the fixed input, total product can be found by determining output: Multiple Choice O at each level of labour employment holding capital employment constant O using various numbers of sewing machines with the same amount of labour O divided by the number of workers employed for each unit of labour employment O at various levels of labour and capital employment O multiplied by each additional labourer who is employedMarginal cost: Multiple Choice 0 is the change in total cost divided by the change in average product is the total cost of producing each unit of output is marginal product divided by the change in total cost is average product divided bytne change in total cost rises as long as marginal product continues to fall 0000 Which of the following is an output? Multiple Choice O a refrigerator used to store frozen foods in grocery stores O an accountant hired by the Canadian Apple Cider Company O a CD being sold at popular music stores O a computer used by a programmer at a software company O a plough used by wheat farmersDollars 00 Q] Quamiiy Referto the figure above. Between output levels 00 and Q1: Multiple Choice 0 marginal cost is falling but is below average cost, As a result, average cost is falling at a decreasing rate until it reaches a maXImum at Q1 where marginal and average converge to zero. Multiple Choice 0 marginal cost Is falling but is below average cost. As a result, average cost is falling at a decreasing rate until it reaches a maleum at (3:1 where marginal and average converge to zero. marginal cost Is rising but Is below average cost. As a result, average cost is falling at a decreasing rate until It reaches a minimum at 01 where marginal and average cost are equal. marginal cost is falling but is below average cost, As a result, average cost is tailing at a decreasing rate until it reaches a minimum at Q1 where marginal and average cost differ by Q1 - Q0, marginal cost is rising but is below average cost, As a result, average cost is falling at an increasing rate until it reaches a minimum at Q1 where marginal and average cost are equal, marginal cost is rising but is above average cost. As a result, average cost is falling at a decreasing rate until it reaches a maximum at Q5 where marginal and average cost are equal