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Micro 3.2-Short-Run Cost Curves MCQ Open Practice
By Michael Burbine
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Last updated 5 months ago
10 questions
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Question 1
1.
What is the correct definition of Total Fixed Cost?
The cost that varies with the level of output.
The cost that remains constant regardless of output.
Question 2
2.
If the Total Cost is $500 and the Total Variable Cost is $300, what is the Total Fixed Cost?
$100
$800
$200
Question 3
3.
How does Marginal Cost behave as output increases when exhibiting diminishing returns?
Decreases
Increases
Remains constant
Question 4
4.
Average Variable Cost is:
Total Cost divided by quantity produced.
Total Fixed Cost divided by quantity produced.
Total Variable Cost divided by quantity produced.
Question 5
5.
Calculate the Average Total Cost if Total Cost is $600 and output is 50 units.
$10
$12
$15
Question 6
6.
When production starts, which cost is always positive?
Marginal Cost
Total Variable Cost
Total Fixed Cost
Question 7
7.
Which cost is calculated as the change in Total Cost divided by the change in output?
Total Variable Cost
Total Fixed Cost
Marginal Cost
Question 8
8.
If Average Fixed Cost is $4 and quantity is 100, what is the Total Fixed Cost?
$400
$40
$4
Question 9
9.
If Marginal Cost is higher than Average Total Cost, what happens to Average Total Cost?
Increases
Decreases
Stays the same
Question 10
10.
A decrease in total variable cost usually means:
More output is produced.
Less output is produced.
Increase in Total Fixed Cost.
The cost to produce one more unit of output.
The sum of total variable cost and total cost.
The total cost minus marginal cost.
$300
$500
Equals Total Cost
Remains unpredictable
Total Variable Cost minus Quantity.
Total Cost minus Average Total Cost.
$20
$30
Average Variable Cost
Total Cost
Average Fixed Cost
Total Cost
$10
$100
Becomes zero
Cannot be determined
Less efficient production.
Fixed costs are variable.