In the Short Run Time Horizon for a Firm,total Fixed
In the short run time horizon for a firm,total fixed costs
A)decrease and then increase as output increases.
B)decrease as output increases.
C)do not vary with output.
D)increase and then decrease as output increases.
E)are equal to total variable costs.
Jodi recently went into business producing widgets.Which of the following would be a fixed cost for her firm? 1.labour costs of $1000 per month
2.raw material costs of $5000 per month
3.a one-year lease on a building of $12 000
D)1 and 2
E)2 and 3
Marginal cost is defined as the
A)change in total cost resulting from an additional unit of output.
B)change in fixed cost resulting from an additional unit of output.
C)difference between average total cost and average variable cost.
D)cost per unit when the firm is operating at capacity.
E)cost of an additional unit of a variable factor of production.
A firmʹs short-run cost curves,as conventionally drawn,show that
A)AFC increases as output increases.
B)ATC = TFC + TVC.
C)AVC decreases as long as MC > AVC.
D)the MC curve intersects the AVC and ATC curves at their maximum points.
E)ATC decreases and then increases as output increases.