2015-08-13
518
The Flying Elvis Copter Rides
| Quantity | Total Cost | Fixed Cost | Variable Cost | Marginal Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost |
| $50 | $50 | $0 | -- | -- | -- | -- | |
| $150 | A | B | C | D | E | F | |
| G | H | I | $120 | J | K | L | |
| M | N | O | P | Q | $120 | R |
32. Refer to Table 13-5. What is the value of A?
| a. | $25 |
| b. | $50 |
| c. | $100 |
| d. | $200 |
33. Refer to Table 13-5. What is the value of B?
| a. | $25 |
| b. | $50 |
| c. | $100 |
| d. | $200 |
34. Refer to Table 13-5. What is the value of C?
| a. | $25 |
| b. | $50 |
| c. | $100 |
| d. | $200 |
35. Refer to Table 13-5. What is the value of G?
| a. | $30 |
| b. | $120 |
| c. | $220 |
| d. | $270 |
36. Refer to Table 13-5. What is the value of L?
| a. | $60 |
| b. | $135 |
| c. | $240 |
| d. | $270 |
37. Refer to Table 13-5. What is the value of O?
| a. | $40 |
| b. | $140 |
| c. | $360 |
| d. | $410 |
38. The most likely explanation for economies of scale is
| a. | coordination problems. |
| b. | specialization of labor. |
| c. | increasing marginal cost. |
| d. | decreasing marginal cost. |
39. In the long run Firm A incurs total costs of $1,050 when output is 30 units and $1,200 when output is 40 units. Firm A exhibits
| a. | diseconomies of scale because total cost is rising as output rises. |
| b. | diseconomies of scale because average total cost is rising as output rises. |
| c. | economies of scale because total cost is rising as output rises. |
| d. | economies of scale because average total cost is falling as output rises. |
40. When a firm experiences constant returns to scale,
| a. | long-run average total cost is unchanged, even when output increases. |
| b. | long-run marginal cost is greater than long-run average total cost. |
| c. | long-run marginal cost is less than long-run average total cost. |
| d. | the firm is likely to experience coordination problems. |
