If the total cost of producing 2 pounds of cheese is $6 and the total cost of producing 4 pounds of cheese is $8, then:
A)marginal cost of producing cheese declines as output increases.
B)average total cost of producing cheese declines as output increases.
C)average total cost of producing cheese increases as output increases.
D)average total cost remains constant irrespective of the change in output.
E)marginal cost remains constant irrespective of the change in output.
A firm's marginal cost equals the:
A)ratio of total cost to total quantity.
B)slope of the demand curve under perfect competition.
C)slope of the total product curve when the latter is at its maximum.
D)change in total cost divided by the change in total output.
E)slope of the supply curve.
The marginal fixed cost of a firm:
A)is a positive constant irrespective of output level.
B)declines as output is increased because a fixed numerator is divided by an ever-growing denominator.
C)generally increases as output is increased.
D)is equal to average variable cost and average total cost at their minimum points.
E)is always equal to zero and is therefore ignored by economists.
Which of the following reflects the correct relationship between average total cost (ATC) and marginal cost (MC)?
A)When MC > ATC; ATC is falling.
B)When ATC is minimum; ATC < MC.
C)When MC < ATC; ATC is falling.
D)When MC < ATC; ATC is constant.
E)When ATC < MC; MC is falling.