1. Marginal cost may be defined as
a. the change in average total cost that results from producing one more unit of output
b. the change in average variable cost that results from producing one more unit of output.
c. the change in total cost that results from producing one more unit of output.
d. the rate of change in total fixed cost that results from producing one more unit of output.
2. If fixed cost is $5,000, and, at an output of 3 variable costs is $4,000, how much is the average total cost at an output of 3?
a. $1,333.33
b. $3000.00
c. $4500.00
d. $9000.00
3. A production function shows a firm how to _____________.
a. maximize profits
b. maximize output
c. minimize losses
d. minimize output
1. Marginal cost may be defined as
a. the change in average total cost that results from producing one more unit of output
b. the change in average variable cost that results from producing one more unit of output.
c. the change in total cost that results from producing one more unit of output.
d. the rate of change in total fixed cost that results from producing one more unit of output.
2. If fixed cost is $5,000, and, at an output of 3 variable costs is $4,000, how much is the average total cost at an output of 3?
a. $1,333.33
b. $3000.00
c. $4500.00
d. $9000.00
3. A production function shows a firm how to _____________.
a. maximize profits
b. maximize output
c. minimize losses
d. minimize output
Related textbook solutions
Related questions
1. Marginal cost is defined as
a. a change in total costs from producing one more unit of output.
b. the change in fixed cost from producing one more unit of output.
c. total cost divided by total output.
d. total variable cost divided by total output.
2. The marginal cost curve often decreases at first and then starts to increase. This is explained by:
a. the law of diminishing returns.
b. economies of scale.
c. increasing ATC.
3. From the information given in the following table, calculate the marginal cost of the 3rd unit of output. Enter your answer exactly; do not round.
| Output | Total Cost | Marginal Cost |
| 0 | $20 | N/A |
| 1 | $35 | $15 |
| 2 | $45 | $10 |
| 3 | $65 | |
| 4 | $90 | $25 |
