Question 1(1 point)

George makes custom guitars. He has increasing marginal costs and decreasing marginal benefits from making the guitars. Last month George produced 10 guitars. The tenth guitar cost $50 and had a marginal benefit of $40. How would you suggest George adjust his production this month?

Question 1 options:

a	George should increase his production of guitars.
b	George should reduce his production of guitars.
c	George should consider producing ukuleles.
d	There is not enough information to determine George's best course of action.

Question 2(1 point)

The long run is a planning period:

Question 2 options:

a	over which a firm can consider all inputs as variable
b	that is the same for all firms
c	that is at least 1 year in length
d	that must be over 1 month in length

Question 3(1 point)

Number of Workers	Burgers per hour
1	4
2	10
3	17
4	22
5	25

The table above provides the total number of workers and the resulting total output per hour for Burgers Unlimited, holding all other inputs constant.

What is the marginal product of the 4th worker?

Question 3 options:

a	22
b	5
c	3
d	4

Question 4(1 point)

The average total cost of baking 10 brownies is $10. The average variable cost of baking 10 brownies is $7. What is the fixed cost?

(Hint: You cannot directly calculate the fixed cost, you need to first calculate some other costs that will then allow you to calculate the fixed cost)

Question 4 options:

a	$10
b	$20
c	$30
d	$60

Question 5(1 point)

The average total cost of baking 5 cookies is 80 cents and the average total cost of baking 6 cookies is 70 cents. What is the marginal cost of producing 6th cookie?

(Hint: You cannot directly calculate the marginal cost, you need to first calculate some other cost(s) that will then allow you to calculate the marginal cost)

Question 5 options:

a	10 cents
b	20 cents
c	70 cents
d	80 cents

Question 6(1 point)

Which of the following is NOT true?

Question 6 options:

a	At the minimum-cost output, the marginal cost curve crosses the average total cost curve
b	At output greater than the minimum-cost output, marginal cost is greater than average total cost and average total cost is falling
c	At output less than the minimum-cost output, marginal cost is less than average total cost and average total cost is falling
d	At output greater than the minimum-cost output, marginal cost is greater than average total cost and average total cost is rising

Question 7(1 point)

$ ATC, ATC2 ATC3 Q Q1 Q2