Question

If the marginal value of some variables is above the average value of the variable: *

1 point

a. the marginal value must be rising.

b. the marginal value must be falling.

c. the average value must be rising.

d. the average value must be falling.

The fixed costs of a firm are costs that stay the same regardless of *

1 point

a. the amount of output produced.

b. the price of the fixed input.

c. the amount of the fixed input employed.

d. whether the firm is in the short-run or the long-run.

In the short run, TVC *

1 point

a. is positive when output is zero.

b. increases with increasing output.

c. decreases when the firm is experiencing diminishing returns.

d. decreases when the firm is experiencing increasing returns.

In the short-run, when output is zero *

1 point

a. TC is zero.

b. TFC is zero.

c. TVC is zero.

d. AFC is zero.

The MC curve must be *

1 point

a. rising when TC is rising.

b. less than AFC when the average cost is rising.

c. greater than ATC when the average curve is rising.

d. falling when the ATC curve lies below the marginal curve.

Answer 1

1. If the marginal value of some variables is above the average value of the variable, then the average value must be rising. Hence, option(C) is correct.

2. The fixed costs of a firm are costs that stay the same regardless of the amount of output produced. Hence, option(A) is correct.

3. In the short run, TVC   increases with increasing output.Hence, option(B) is correct.

4. The MC curve must be greater than  ATC when the average curve is rising.Hence, option(C) is correct.