Reference no: EM13313587
1. For a cost function C =100 + 10Q + Q2, the avenge fixed cost of producing 10 units of output is
a) 10.
b) 5
c) 1.
d) none of the above.
2. 20 for a cost function C =100 + 10Q + Q2, the average variable cost of producing 20 units of output is
a) 10.
b) 20
c) 30.
d) none of the above.
3. Suppose the long-ran average cost curve IS U-shaped: When LRAC is in the increasing stage, there exist
a) economies of scope.
b) disebonondes of scope.
c) Eck economies of scale.
d) diseconomies Of scale.
4. Sunk costs are those costs that
a) do not vary without output
b) forever lost aver they have been paid.
c) collected even after they have been paid.
d) dO Vary with output
5. The difference between average total costs and average variable costs is
a) arginal cost.
b) average fixed cost.
c) fixed cost
d) none of the above.
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