Cost Functions & Curves Quiz

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Cost concepts quiz

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UNIT KEPIMPINAN PELAJAR UiTM PAHANG

Malasia

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AsterQuiz Cost Functions & Curves QuizVersión en línea Cost concepts quiz por UNIT KEPIMPINAN PELAJAR UiTM PAHANG 1 What is the standard formula for total cost (TC)? a TC = VC - FC b TC = FC × VC c TC = FC + VC 2 How is marginal cost (MC) defined? a MC = ΔTC/ΔQ b MC = ΔVC/ΔQ c MC = ΔTC/ΔP 3 Fixed costs are costs that do what with output in the short run? a Do not vary with output b Vary with output c Only occur at zero output 4 Average total cost (ATC) equals what? a TC divided by quantity (Q) b MC divided by Q c VC divided by Q 5 When should a firm shut down in the short run? a If price < MC b If price < AVC c If price < ATC 6 What tends to happen to long-run average cost when there are increasing returns to scale? a Vertical LRC with constant cost b Upward sloping LRC due to diseconomies c Downward sloping LRC due to economies of scale 7 At what point does the MC curve intersect the ATC curve? a Where MC = 0 b At the minimum point of ATC c At the maximum point of ATC 8 If MC exceeds MR for a firm, what should it do to maximize profit? a Increase output until MC = MR b Reduce output until MC = MR c Keep output unchanged 9 Which of the following is a true example of fixed cost? a Rent for factory space b Wages of hourly workers c Raw materials used in production 10 Short-run vs long-run cost curves: SR average cost is typically U-shaped; long-run cost curves reflect all inputs being adjustable. True or false? a False b True c Only in perfect competition

AsterQuiz

Cost Functions & Curves QuizVersión en línea

Cost concepts quiz

por UNIT KEPIMPINAN PELAJAR UiTM PAHANG

What is the standard formula for total cost (TC)?

TC = VC - FC

TC = FC × VC

TC = FC + VC

How is marginal cost (MC) defined?

MC = ΔTC/ΔQ

MC = ΔVC/ΔQ

MC = ΔTC/ΔP

Fixed costs are costs that do what with output in the short run?

Do not vary with output

Vary with output

Only occur at zero output

Average total cost (ATC) equals what?

TC divided by quantity (Q)

MC divided by Q

VC divided by Q

When should a firm shut down in the short run?

If price < MC

If price < AVC

If price < ATC

What tends to happen to long-run average cost when there are increasing returns to scale?

Vertical LRC with constant cost

Upward sloping LRC due to diseconomies

Downward sloping LRC due to economies of scale

At what point does the MC curve intersect the ATC curve?

Where MC = 0

At the minimum point of ATC

At the maximum point of ATC

If MC exceeds MR for a firm, what should it do to maximize profit?

Increase output until MC = MR

Reduce output until MC = MR

Keep output unchanged

Which of the following is a true example of fixed cost?

Rent for factory space

Wages of hourly workers

Raw materials used in production

Short-run vs long-run cost curves: SR average cost is typically U-shaped; long-run cost curves reflect all inputs being adjustable. True or false?

False

True

Only in perfect competition

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Cost Functions & Curves Quiz

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Creada por

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Cost Functions & Curves QuizVersión en línea

por UNIT KEPIMPINAN PELAJAR UiTM PAHANG

What is the standard formula for total cost (TC)?

How is marginal cost (MC) defined?

Fixed costs are costs that do what with output in the short run?

Average total cost (ATC) equals what?

When should a firm shut down in the short run?

What tends to happen to long-run average cost when there are increasing returns to scale?

At what point does the MC curve intersect the ATC curve?

If MC exceeds MR for a firm, what should it do to maximize profit?

Which of the following is a true example of fixed cost?

Short-run vs long-run cost curves: SR average cost is typically U-shaped; long-run cost curves reflect all inputs being adjustable. True or false?

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