01 Jun Question Section 1: Multiple-Choice
Question
The following graph may help you answer questions 1-3:
ATC = Average Total Cost
AVC = Average Total Cost
AFC = Average Fixed Cost
MC = Marginal Cost
Q = Quantity
1. The marginal cost curve first declines and then increases because of:
A. initially increasing, later diminishing, marginal returns
B. the increase in the gap between ATC and AVC as quantity increases
C. the drop in ATC as a result of diseconomies of scale
D. constant marginal revenue
2. ATC is equal to: XXXXX – AFC
B. AVC + AFC
C. MC + AFC
D. (ATC + AFC) * Q
3. The difference between ATC and AVC is equal to:
A. marginal cost
B. total fixed cost
C. average fixed cost
D. economic profit per unit
4. A profit-maximizing firm should hire an input as long as the:
A. Firm can increase its total revenue
B. Price of the input doesn’t exceed the price of the other inputs used in the firm’s production
C. Marginal revenue product of the input is at least as much as the cost of hiring the input
D. Marginal revenue product of the input is greater than the marginal revenue product of other inputs the firm is using
Wayne’s Jacket Shop sells Wayne’s jackets for $20 each. Wayne finds that when he hires different numbers of workers, the corresponding total revenues are as follows:
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.