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Is a type of cost which does vary with the unit of production and will change with the number of unit sold O A. Variable cost O B. Fixed cost O C. Sunk cost O D. Opportunity cost

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...

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Question

Is a type of cost which does vary with the unit of production and will change with the number of unit sold.
O A. Variable cost
O B. Fixed cost
O C. Sunk cost
O D. Opportunity cost

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Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
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Is a type of cost which does not vary with the unit of production and will remain constant irrespective of the number of unit sold. O A. Variable cost О В. Fixed cost о С. Оррortunity cost O D. Sunk cost
Which of the following is not included in total cost? Select one: O a cost of the product to the buyer O b. O C. variable costs explicit costs O d. implicit costs
If marginal cost is above average variable cost, then Select one A average variable cost is constant B average variable cost is increasing. OC marginal cost must be decreasing D average variable cost is decreasing
By doubling a machine's inputs, the output increases three times. How does this affect cost and what does this characterize? O Per unit costs rises, Diseconomies of Scale O Per unit costs falls, Economies of Scale O Per unit costs remains the same, Constant Economies of Scale O Per unit cost rises, Economies of scale Per unit cost falls, diseconomies of scale.
K When marginal cost (MC) is falling, which of the following must be true? OA. Average variable cost (AVC) is increasing. OB. Average variable cost (AVC) is falling OC. Average total cost is increasing. O D. Average fixed cost (AFC) is increasing.
Marginal cost is equal to the change in average variable cost divided by the change in total output O fixed cost divided by the change in total output O variable cost divided by the change in total output O average total cost divided by the change in total output