Suppose a firm has many different possible short-run average total cost curves, representing different amounts of fixed inputs. The long-run average cost curve _________________ each of the short run average cost curves.

options:

	is greater than
	is the sum of
	is less than or equal to
	can be less than or greater than

Consider the firm's total costs shown in the table below. What is the firm's fixed cost and variable cost when the quantity produced is 20 units?

Qty	Total Cost
0	200
10	400
20	700
30	800
40	1100

Question 12 options:

	Fixed Cost = 200, Variable Cost = 500
	Fixed Cost = 350, Variable Cost = 350
	Fixed Cost = 0, Variable Cost = 700
	Fixed Cost = 200, Variable Cost = 700

Which of the following statements is TRUE?

An excise tax imposed on the producers of a good:

options:

	Only affects producer surplus and does not affect consumer surplus
	Does not change the price paid by consumers
	Generates a lower deadweight loss than an excise tax imposed on consumers
	Generates the same tax revenue as as excise tax imposed on consumers

Which of the following is NOT an example of implicit cost?

options:

	Salary foregone during college education
	Loss of interest payments by not putting money in a bank
	Monthly rent payments
	The effect of smoking on health

The owner of a supermarket knows that when the price of potatoes increases by 10% the demand for tomatoes decreases by 10%. Given this information, we know that potatoes and tomatoes are _______.

options:

	Complements
	Substitutes
	Inferior goods
	Normal goods