Question

11.) In the long run, total fixed cost will: a remain constant. b increase. c decrease....

11.) In the long run, total fixed cost will:

 a remain constant.
 b increase.
 c decrease.
 d not exist by definition.

15.) Exhibit 7-12 Cost schedule for producing pizza

 Pizzas Fixed Cost Variable Cost Total Cost 0 \$ \$ \$ 1 48 2 17 3 27 4 78 5 40 6 64 7 80

By filling in the blanks in Exhibit 7-12, the AVC of 3 pizzas is shown to be equal to:

 a \$10.
 b \$13.33.
 c \$9.
 d \$22.33.
 e \$40.

16.) The short run is a period of time:

 a in which a firm uses at least one fixed input.
 b that is long enough to permit changes in the firm's plant size.
 c in which production occurs within one year.
 d in which production occurs within six months.

Q11
Option d
A short run is where some of the inputs should be fixed, and a long run all are variable. The long run is 1 hour for some business, and it is ten years, so it is different as per inputs required.
A short run is up to one of the input cannot be changed and long run when all inputs can be changed.

---------
Q12
AVC=VC/Q
=27/3
=\$9
AVC of 3 units is \$9

option c
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Q13
Option
a. in which a firm uses at least one fixed input
A short run is up to one of the input cannot be changed and long run when all inputs can be changed.

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