44)How does the average-fixed-cost curve behave?  A. It declines as long as it is above marginal cost.  B. It always declines with increased levels of output.  C. It declines as long as it is below marginal cost  D. It always rises with increased levels of output.

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44)How does the average-fixed-cost curve behave?

  •  A. It declines as long as it is above marginal cost.
  •  B. It always declines with increased levels of output.
  •  C. It declines as long as it is below marginal cost
  •  D. It always rises with increased levels of output.

43) Refer to the attached Table 2. What is the variable cost of producing zero widgets?

  •  A. $0
  •  B. $10.25
  •  C. $11.00
  •  D. $1.00
Table 13-1
Measures of Cost for ABC Inc. Widget Factory
Quantity
of Widgets
Variable
Total
Fixed
Costs
Costs
Costs
$15
$1
$3
$6
1
2
$18
3
$21
4
$10
5
$30
6.
$21
$15
Transcribed Image Text:Table 13-1 Measures of Cost for ABC Inc. Widget Factory Quantity of Widgets Variable Total Fixed Costs Costs Costs $15 $1 $3 $6 1 2 $18 3 $21 4 $10 5 $30 6. $21 $15
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