1. Fixed costs of production in the short run:
A. Cannot be reduced by producing less output
B. Are a function of the level of variable costs
C. Are low in proportion to variable costs in the short run
D. Increase as the firm produces more output
2. Marginal cost can be defined as the:
A. Change in total fixed cost resulting from one more unit of production
B. Change in total cost resulting from one more unit of production
C. Change in average total cost resulting from one more unit of production
D. Change in average variable cost resulting from one more unit of production
3. Which of the following is true under conditions of pure competition?
A. There are differentiated products
B. The market demand curve is perfectly elastic
C. No single firm can influence the market price by changing its output
D. Each individual firm has the ability to set its own price
1. Fixed costs of production in the short run:
A. Cannot be reduced by producing less output
B. Are a function of the level of variable costs
C. Are low in proportion to variable costs in the short run
D. Increase as the firm produces more output
2. Marginal cost can be defined as the:
A. Change in total fixed cost resulting from one more unit of production
B. Change in total cost resulting from one more unit of production
C. Change in average total cost resulting from one more unit of production
D. Change in average variable cost resulting from one more unit of production
3. Which of the following is true under conditions of pure competition?
A. There are differentiated products
B. The market demand curve is perfectly elastic
C. No single firm can influence the market price by changing its output
D. Each individual firm has the ability to set its own price
