Question 1

Thomas owns a burger restaurant. His total costs are $550,000, and his total fixed costs are $200,000. He sells 1,000 units. Calculate the average variable costs.

C$200

C$350

$550

C$750

Question 2

Consider a store making pizzas. Which of the following can explain why the store may experience diminishing marginal product of labor?

- Division of labor and specialization allow the store to increase production.

- Marginal product of labor is always negative. The rest on the image.

There may not be enough tools and equipment for the workers to use. E.g., there are not enough ovens for workers to use for baking pizzas. Marginal product of labor can never be positive. Question 3 1 pts Consider rental payments. In short run, rental payments with quantity of output. In long run, rental payments with quantity of output. do not vary; vary decrease; do not vary ovary; do not vary Cincrease; do not vary Question 4 1 pts Firm A always exhibits diseconomies of scale when it expands its production. Which of the following graphs correctly depicts firm A? C Long run A ATC - Q\fC Long run A ATC Q Question 5 1 pts The total fixed costs (TFC) for firm B = $100. Is firm B operating in short run or long run? Explain. Short run, because there are fixed costs (TFC is not 0). Long run, because TFC is less than $200. Question 6 1 pts What is the vertical gap between ATC and AVC? OMC CAFC CTVC Question 7 1 pts Are wages paid to employees a fixed cost for a firm? Yes No Question 8 1 ptsWhen quantity of output increases, dose AFC decrease? Yes No Consider the following graph which shows the cost curves for a firm. Use the given information to answer questions 9 - 10. P MC * ATC AVC Q1 Q2 Q3 Q4 Q Q Question 9 1 pts At what quantity of the output such that MC is at its minimum? CQ1 CQ2 Q3 OQ4 CQ5 Question 10 1 pts At what quantity of the output such that AVC is at its minimum? CQ 1 OQ2 Q3 CQ4 CQ5Consider the following table. Use the given information to answer questions 11 - 12. Quantity TFC TVC TC MC $1,000 $1,300 $1,500 $200 3 $600 $1,600 $100 $1,000 Question 11 1 pts Find TFC. TFC = $ Question 12 1 pts Find MC when Q = 3. Answer: When Q = 3, MC = $. The following table shows the production for a firm. Use the given information to answer questions 13 - 17. Number of workers Total output MP 0 0 30 2 70 3 125 4 185225 250 26 8 255 9 240 Question 13 1 pts Calculate the MP of the 1st worker. Question 14 1 pts From the 1st worker to the 4th worker, is MP increasing? [ Select ] Question 15 1 pts Calculate the MP of the 6th worker. Question 16 1 pts From the 5th worker to the 9th worker, is MP decreasing? [ Select ] V Question 17 1 pts Calculate the MP of the 9th worker. (Hint: The answer is negative.) Use the following information to answer questions 18 - 20. Mary has a bakery store. The store brings her a revenue of $16,000. She pays a rent for her store of $2,000. Her labor costs for are $4,500, and she spends $6,000 on nut flours, sugar, and other supplies. If Mary does not works for her own store, she can earn $2,500 working as a bank teller. Question 18 1 ptsCalculate the economic cost. Answer: The economic cost = $ Question 19 1 pts Calculate the accounting prot. Answer: The accounting prot = $ Question 20 1 pts Calculate the economic profit. Answer: The economic profit = $ Quiz saved at 1:26pm Submit Quiz