Short-Run of Production Short-Run 1. How are total costs calculated? A. Fixed costs/Quantity produced B. Fixed costs + variable costs C. Variable costs/Quantity produced D. Marginal costs + Variable costs E. (Fixed costs+Variable costs)/quantity produced Melanie made 100 muffins in her bakery and used the formula below to calculate one of the costs associated with making these muffins: 2. What is Melanie calculating? A. Total cost B. Average total cost C. Marginal Cost D. Average variable cost E. Average fixed cost 3. Which of the following best describes average variable cost? A. The total costs that vary as output changes, per unit of output B. The costs that vary as output changes, per unit of output C. The costs that do not vary as output changes, per unit of output D. The costs that do not vary as output changes E. The cost of producing one more unit of output 4. A firm currently produces 100 units of output and has fixed costs of $1000 variable costs of $8000, and the marginal cost of $100 for the, 100 th unit. What is the average total cost of producing 100 units? A. $100 B. $91 C. $80 D. $90 E. $70 5. A firm currently produces 1000 units of output and has total costs of $15, 000 and fixed costs of $3,000. What is the firm’s average variable costs? A. $3 B. $15 C. $19 D. $0 E. $12

EDCONFIDENCE · Web viewThe cost of producing one more unit of output 4. A firm currently produces 100 units of output and has fixed costs of $1000 variable costs of $8000, and the

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Page 1: EDCONFIDENCE · Web viewThe cost of producing one more unit of output 4. A firm currently produces 100 units of output and has fixed costs of $1000 variable costs of $8000, and the

Short-Run of Production

Short-Run

1. How are total costs calculated? A. Fixed costs/Quantity produced B. Fixed costs + variable costs C. Variable costs/Quantity produced D. Marginal costs + Variable costs E. (Fixed costs+Variable costs)/quantity produced

Melanie made 100 muffins in her bakery and used the formula below to calculate one of the costs associated with making these muffins:

2. What is Melanie calculating? A. Total cost B. Average total cost C. Marginal Cost D. Average variable cost E. Average fixed cost

3. Which of the following best describes average variable cost? A. The total costs that vary as output changes, per unit of output B. The costs that vary as output changes, per unit of output C. The costs that do not vary as output changes, per unit of output D. The costs that do not vary as output changes E. The cost of producing one more unit of output

4. A firm currently produces 100 units of output and has fixed costs of $1000 variable costs of $8000, and the marginal cost of $100 for the, 100th unit. What is the average total cost of producing 100 units?

A. $100 B. $91 C. $80 D. $90 E. $70

5. A firm currently produces 1000 units of output and has total costs of $15, 000 and fixed costs of $3,000. What is the firm’s average variable costs?

A. $3 B. $15 C. $19 D. $0 E. $12

Page 2: EDCONFIDENCE · Web viewThe cost of producing one more unit of output 4. A firm currently produces 100 units of output and has fixed costs of $1000 variable costs of $8000, and the

The table below contains information about a firm’s current production:

6. What is the firm’s average fixed cost for producing 100 units?A. $1000 B. $70 C. $110 D. $180 E. $290

The table below contains costs incurred by Fantabulous Enterprises, Inc., but some values are missing. Assume that the quantity where average total cost is minimized is a whole number and included in this table.

7. What is the total cost of producing 4 units? A. $540.00 B. $229.00 C. $43.25 D. $584.00 E. $692.00

8. What is this firm’s marginal cost of producing the fifth unit of output? A. This cannot be determined based on the information given B. $311 C. $171 D. $137 E. $100

9. What are this firm’s total fixed costs?A. Total fixed costs cannot be determined using this data. B. Total fixed costs will vary based on the amount of output C. $320 D. $0 E. $100