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1. When marginal product is decreasing, marginal cost a. less than zero b. equal to zero C. constant d. decreasing e. increasing # of figs VC MC AVC FC TC ATC 100 90 90 135 80 400 370 2. Refer to the above cost schedule for David's Figs. If David produces 2 figs, David's total costs are a. 135 b. 67.5 C. 270 d. 50 e. Not enough information to answer the question 3. If David produces 3 figs, David's variable costs are a. 240 b. 0 80 d. 41.67 e. Not enough information to answer the question 4. If David produces 5 figs, David's total costs are a. 370 b. 100 C. 470 d. 770 e. Not enough information to answer the question$/0 5. In the above exhibit, the vertical distance between lines B and C at any level of output represents a. marginal cost average total cost average variable cost d. average fixed cost 6. In the above exhibit, when output is 10. a. average fixed cost is $7 b. average total cost is $1 average variable cost is $7 10 g/t C. d. average fixed cost is $1 7. If marginal cost exceeds average variable cost, a. average variable cost is negative b. average variable cost is increasing c. marginal cost is greater than average total costCost per unit 2 A 8. If the firm represented in the above exhibit wants to produce output level q. then in the long run it should build a plant size with average total cost curve of a. 1 b. C. CO N d. A e. the question can't be answered with the information given 9. Increasing Returns to Scale can be caused by a. al of the following b. short-fun increases in marginal productivity c. the use of larger, more specialized machines d. higher information costs as a firm expands 10. Someone once said that Chevrolet is so large that if it shakes its tail, it takes two years for its head to notice it. This is an example of a. profit centers b. increasing returns to scale c. decreasing returns to scale d. diminishing marginal returns e. diminishing marginal cost