18. What does average total cost tell us?

Question 18 options:

A.	the total cost of the first unit of output, if total cost is divided evenly over all the units produced
B.	the cost of a typical unit of output, if total cost is divided evenly over all the units produced
C.	the cost of the last unit of output, if total cost does not include a fixed cost component
D.	the variable cost of a firm that is producing at least one unit of output

19. Which of the following does NOT calculate accounting profit or economic profit properly?

A.	Accounting profit = Total revenue - Explicit costs
B.	Economic profit = Total revenue - Total opportunity costs
C.	Economic profit = Total revenue - Explicit costs - Implicit costs
D.	Accounting profit = Total revenue - Implicit costs

20. When a competitive firm triples the amount of output it sells, what is the result?

A.	Its total revenue triples.
B.	Its average revenue triples.
C.	Its marginal revenue triples.
D.	Its selling price triples.

21. Market demand is given as QD = 250 - P. Market supply is given as QS = 1.5P. Each identical firm has MC = 10Q and ATC = 8Q. What is a firm's profit?

A.	$200
B.	$800
C.	$1000
D.	$1600

22. When marginal cost is rising, what must happen to average variable cost?

A.	It must be rising.
B.	It must be falling.
C.	It must be constant.
D.	It could be rising or falling.

23. Why are long-run average-total-cost curves often U-shaped?

A.	for the same reasons that short-run average-total-cost curves have the identical U-shape
B.	because of constant returns to scale
C.	because of increasing coordination problems at low levels of production and increasing specialization of workers at high levels of production
D.	because of increasing specialization of workers at low levels of production and increasing coordination problems at high levels of production

24. Market demand is given as QD = 250 - P. Market supply is given as QS = 1.5P. Each identical firm has MC = 10Q and ATC = 8Q. What is a firm's average total cost?

A.	$5
B.	$10
C.	$80
D.	$100