The profit maximizing rule states that a business maximizes profits when marginal cost equals Select one: O a. Variable costs Ob. Fixed cost O c. Marginal revenue O d. None of the above
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- Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costsHow does fixed cost affect marginal cost? Why is this relationship important?Which type of cost does depend on a firm's output? Select one: O A. marginal cost O B. total cost O C variable cost O D. all of the above
- Marginal cost is average variable cost when O a. equal to; average variable cost is minimized. O b. greater than; average fixed cost is minimized O c. equal to; average total cost is minimized O d. less than; total cost is maximized If Mark produces five pairs of earrings, his total costs are Number of TVC MC AVC TFC TC Earnings 100 1 50 2 3 46.67 4 300 5 270 O a. $320. O b. $370. O c. $400. O d. $360.A firm will operate so long as the price O A. exceeds average variable cost. OB. equals the opportunity cost. O C. exceeds average fixed cost. O D. exceeds average total cost.QUESTION 2 When the article said that Bird was making 19% gross margin profit, this is O A. Accounting profit O B. Economic Profit O C. Neither accounting nor economic profit. D. Cannot tell from the article what kind of profit с
- If a firm produces nothing, which of the following costs will be zero? Select one: a. variable cost O b. fixed cost c. opportunity cost O d. total costWhich 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 costsIs 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
- A firm is producing the profit-maximizing amount of output when it is producing where its curve intersects its curve. Select one: total cost; total revenue O average total cost; average variable cost O marginal cost; average total cost O marginal cost; marginal revenue O marginal cost; average variable costWhat is the difference between accounting profit and economic profi? OA Economic profit subtracts both explicit and implicit costs from total revenue, while accounting proft only subtracts explicit costs. OB. Accounting profit only subtracts implicit costs from total revenue, while economic profit only subtracts explicit costs. OC Economic profit only subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting profit suberacts both explicit and implicit costs from total revenue, while economic profR only subtracts explicit costsOutput (Q) 150 200 Total Fixed Cost $500 $500 Total Variable Cost $400 Select one: O a. $2.67 O b. $3.33 O c. $900 d. $6.00 $800 Total Cost $900 Average Variable Cost $2.67 $1,300 $6.50 The table above shows costs for a firm. When Q = 150, Average Total Cost (ATC) is equal to: Average Total Marginal Cost Cost