Podcast
Questions and Answers
Which cost is the summation of all expenses that do not change as the level of production varies?
Which cost is the summation of all expenses that do not change as the level of production varies?
- Total variable cost (TVC)
- Total cost (TC)
- Total fixed cost (TFC) (correct)
- Marginal cost (MC)
What is the relationship between the total cost (TC) curve and the total variable cost (TVC) curve?
What is the relationship between the total cost (TC) curve and the total variable cost (TVC) curve?
- The TC curve lies above the TVC curve.
- The TC curve is parallel to the TVC curve. (correct)
- The TC curve intersects the TVC curve at their minimum points.
- The TC curve lies below the TVC curve.
At zero production, what is the value of total cost (TC)?
At zero production, what is the value of total cost (TC)?
- Greater than total fixed cost (TFC)
- Equal to total variable cost (TVC)
- Less than total variable cost (TVC)
- Equal to total fixed cost (TFC) (correct)
What is the relationship between average fixed cost (AFC) and output quantity?
What is the relationship between average fixed cost (AFC) and output quantity?
What is the shape of the average total cost (ATC) curve and the average variable cost (AVC) curve?
What is the shape of the average total cost (ATC) curve and the average variable cost (AVC) curve?
Where does the marginal cost (MC) curve intersect the average variable cost (AVC) curve?
Where does the marginal cost (MC) curve intersect the average variable cost (AVC) curve?
When is the average variable cost (AVC) curve decreasing?
When is the average variable cost (AVC) curve decreasing?
Where does the marginal cost (MC) curve intersect the average total cost (ATC) curve?
Where does the marginal cost (MC) curve intersect the average total cost (ATC) curve?
When is the average variable cost (AVC) curve increasing?
When is the average variable cost (AVC) curve increasing?
What is the difference between average total cost (ATC) and average variable cost (AVC) at output quantity Q1?
What is the difference between average total cost (ATC) and average variable cost (AVC) at output quantity Q1?
Which of the following is true about the relationship between average cost (AC) and marginal cost (MC)?
Which of the following is true about the relationship between average cost (AC) and marginal cost (MC)?
What happens to average total cost (ATC) as output increases beyond a certain point?
What happens to average total cost (ATC) as output increases beyond a certain point?
Which of the following is considered a fixed cost?
Which of the following is considered a fixed cost?
What is the relationship between total variable cost (TVC) and quantity?
What is the relationship between total variable cost (TVC) and quantity?
What is the relationship between TC and TVC?
What is the relationship between TC and TVC?
What happens to TC as the firm expands output?
What happens to TC as the firm expands output?
What is the relationship between MC and AVC in Exhibit 12?
What is the relationship between MC and AVC in Exhibit 12?
What is the relationship between MC and ATC in Exhibit 12?
What is the relationship between MC and ATC in Exhibit 12?
What is the relationship between MC and quantity?
What is the relationship between MC and quantity?
What is the relationship between ATC and quantity?
What is the relationship between ATC and quantity?
