Question

# ​Total cost is calculated as _____. Select one: a. ​average fixed cost plus average variable cost...

​Total cost is calculated as _____.

Select one:

a.

​average fixed cost plus average variable cost

b.

​fixed cost plus variable cost

c.

​the additional cost of the last unit produced

d.

​marginal cost plus variable cost

e.

​marginal cost plus fixed cost

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​The law of diminishing marginal returns states that:

Select one:

a.

​long-run average cost declines as output increases.

b.

​if the marginal product is above the average product, the average will rise.

c.

​as units of a variable input are added to a given amount of fixed inputs, the marginal product of the variable input eventually diminishes.

d.

​as a person consumes more of a good, the marginal satisfaction from that good eventually diminishes.

e.

​if marginal product is positive, total product rises.

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Which of the following would most likely reach the long run most rapidly?

Select one:

a.

​A nuclear power plant

b.

​A college

c.

​A lumber mill

d.

​A shopping mall

e.

​A hot dog stand

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​Which of the following is true of marginal product?

Select one:

a.

​When marginal product is negative, total product is increasing.

b.

​When marginal product is increasing, total product is decreasing.

c.

​When marginal product is positive and decreasing, total product is decreasing.

d.

​When marginal product is positive and decreasing, total product is increasing by increasing amounts.

e.

​When marginal product is increasing, total product is increasing by increasing amounts.

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1.

Answer: b) Fixed cost plus variable cost

Total cost is the sum of fixed cost and the variable cost.

2.

Answer: c) as units of a variable input are added to a given amount of fixed inputs, the marginal product of the variable input eventually diminishes.

The law of diminishing marginal returns states that as one increases the input in the production, the marginal output starts declining at some point of production process.

4.

Answer: e)When marginal product is increasing, total product is increasing by increasing amounts.

Consider the following cases of marginal product and total product:

1.when the Marginal product is positive, the total product rises.

2. When the marginal is zero, the total product is constant.

3 when the marginal product is negative,the total product declines.

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