ECO 102 Summer 2014 (online) Exam3 35questions worth 3 points each + 105 possible points (5 extra credit points built in)
- If a firm shuts down for a week, during that week:
A. total cost is zero.
B. total cost equals total fixed cost.
C. total cost equals total variable cost.
D. total variable cost exceeds total fixed cost.
2. Average fixed cost:
A. is constant and doesn’t vary with output.
B. increases as output increases.
C. decreases as output increases.
D. equals total cost divided by output.
3. A firm is producing 100 units of output at a total cost of 400. The firm’s average variable cost is 3 per unit. What is the firm’s total fixed cost?
4. Refer to the table shown. If the output of bicycles is 4 per week, the marginal cost of producing another bicycle per week is: