SUBJECTIVE SCOREINSTRUCTOR USE ONLY$1007.$ If marginal cost isA. falling, then average total cost must also be falling.B$.$ rising, then average total cost must also be rising.C$.$ rising, then average total cost could be either falling or rising.D$.$ falling, then average total cost could be either falling or rising$\mathrm{.}8.$ If the toral variable cost of $9$ units of output is $890$ and the total variable cost of $10$ units of output is $$120,$ thenA. the average variable cost of $10$ units is $$10.$B$.$ the average variable cost of $9$ units is $$10.$C$.$ the marginal cost of the tenth unit is $$90.$D$.$ the firm is operating in the range of increasing marginal returns$\mathrm{.}9.$ The short$-$run average total cost curve is U$-$shaped becauseA. average fixed costs decline continuously as output increases.B$.$ of increasing and diminishing returns.C$.$ of economies and diseconomies of scale.D$.$ minimum efficient scale is encountered$\mathrm{.}10.$ In the short run, total output in an industryA. is fixed at a specific level.B$.$ can vary as the result of using a fixed amount of plant and equipment more of less intensively.C$.$ may be altered by varying the size of plant and equipment which now exist in the industry.D$.$ can vary as the result of new firms entering or leaving the industry$\mathrm{.}11.$ The main difference between the short run and the long run is thatA. firms earn zero profits in the long run.B$.$ the long run always refers to a time period of one year or longer.C$.$ in the short run, some inputs are fixed and some are variable.D$.$ in the long run, all inputs are fixed$\mathrm{.}12.$ Which of the following statements is false?A$.$ The short run refers to a period of less than one year.B$.$ In the long run, all inputs can vary in quantity.C$.$ Firms may continue operating at a loss in the short run.D$.$ In the long run, firms would not continue operating at a loss$\mathrm{.}13,$ If total fixed cost is $$200,$ total variable cost is $$600,$ and total product is $4$ units, then average total cost must be A $$200.$B$.$ $$250.$C$.$ $$800.$D$.$ $$3,200\mathrm{.}14.$ If a firm produces $10$ units of output, total costs are $$1,030,$ and average fixed costs are $$10,$ then total variable costsareA$.$ $$104.$B$.$ $$930..$ $$1,040.$D$.$ $$1,130\mathrm{.}679$ALL RIGHTS RESERVED. $($U$.$S$.$ PAT. NO : $7,208$output level is$15.$ When producing $8$ units of output, average fixed cost is $$12\mathrm{.}50$ and average variable cost is $$81\mathrm{.}25.$ Total cost at thisA. $$93\mathrm{.}75.$B$.$ $$97\mathrm{.}78..$ $$750.$D$.$ $$880\mathrm{.}2$