Question: if you could answer all thatd be a blessing..if not 1-3 or 4 is also cool lol thank you Quiz 05: Firms, Production, and Costs










Quiz 05: Firms, Production, and Costs (Ch. 6 \& 7.1-2) Question 01 The table below reproduces part of Table 6.1 in the textbook. Let r=$20 be the price of one unit of capital, and w=$60 be the price of one unit of labor. Using the supporting spreadsheet provided on Canvas, add seven new columns to this table calculating: Total Fixed Cost (F), Total Variable Cost (VC). Total Cost (C), Average Fixed Cost (AFC). Average Variable Cost (AVC), Average Total Cost (AC), and Marginal Cost (MC). Which of the following alternatives is correct? (a) When output is q=36, the marginal cost is MC=$5.00 (b) When output is q=75, the marginal cost is MC=$3.16 (c) When output is q=98, the marginal cost is MC=$4.29. (d) When output is q=108, the marginal cost is MC=$6.48 Question 02 Consider the same information in question 01 and the table with your calculations. Which of the following alternatives is correct? (a) When output is q=18, the average total cost is AC=$15.56 (b) When output is q=56, the average total cost is AC=$400.00 (c) When output is q=90, the average total cost is AC=$1.78 (d) When output is q=104, the average total cost is AC=$10.00 Question 03 Consider the same information in question 01 and the table with your calculations. Which of the following alternatives is correct? (a) When output is q=5, avg. variable cost is equal to avg. fixed cost (AVC=AFC) (b) When output is q=18, avg. variable cost is greater than avg. fixed cost (AVC>AFC) (c) When output is q=75, avg. variable cost is greater than avg. fixed cost (AVC>AFC) - (d) When output is q=90, avg. variable cost is smaller than avg. fixed cost (AVC
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
