let information be more of explanation

221.Which of the following is an accurate representation of the relationships between short-run costs?

(A) TC = TVC - TFC

(B) ATC = AVC - AFC

(C) AFC = ATC + AVC

(D) ATC = AVC + AFC

(E) AVC = ATC + AFC

222.Of all short-run cost curves, which one has a downward slope for all units of output?

(A) Marginal cost

(B) Average fixed cost

(C) Total variable cost

(D) Average variable cost

(E) Average total cost

223.In the short run, the marginal product of labor is inversely related to

(A) Economic profit

(B) Marginal utility

(C) Average fixed cost

(D) Average product of labor

(E) Marginal cost

224.Suppose that a firm experiences a technological improvement such that the total product of labor curve

increases at every quantity of labor employed. How will this affect the marginal product of labor and

marginal cost of production in the short run?

MARGINAL PRODUCT OF LABOR MARGINAL COST

(A) Shifts downward shifts upward

(B) No change no change

(C) Shifts upward shifts downward

(D) Shifts upward no change

(E) No change shifts upward

225.Suppose that a firm experiences a technological catastrophe such that the total product of labor curve shifts

downward at every quantity of labor employed. How will this affect the average product of labor and

average variable cost of production in the short run?

AVERAGE PRODUCT OF LABOR AVERAGE VARIABLE COST

(A) Shifts downward shifts upward

(B) No change no change

(C) Shifts upward shifts downward

(D) Shifts upward no change

(E) No change shifts upward

226.All else equal, in the short run as more labor is employed, average product of labor ___________, and

average variable production cost ____________.

(A) Rises then falls; always falls

(B) Falls then rises; always rises

(C) Always falls; always rises

(D) Rises then falls; falls then rises

(E) Falls then rises; rises then falls

227.Total revenue is calculated by

(A) Multiplying the number of units sold by the average total cost of producing those units.

(B) Dividing the total cost of production by the number of units produced

(C) Subtracting average total cost from the price at which the units were sold

(D) Multiplying the number of units sold by the average variable cost of producing those units

(E) Multiplying the number of units sold by the price at which they were sold

228.Fred sells hot dogs at a constant price of $3 and incurs a constant marginal cost of $1. On a typical day he

sells 100 hot dogs. What is Fred's daily total revenue from selling hot dogs?

(A) $300

(B) $200

(C) $100

(D) $600

(E) $400

229.A firm produces Zurgs and no matter how many Zurgs are sold, the market price is unaffected. The marginal

revenue of the next Zurg sold is equal