EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 5MCQ
To determine
Choose the correct option from the following options: An increase in the rent that a firm pays for its factory does not increase ___.
- Total Cost
- Fixed Cost
- Marginal Cost
- Average Fixed Cost
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
If the marginal cost is above the average cost at a certain level of production and the firmdecides to increase output, then:a. The average cost will increase but the marginal cost will decrease.b. Both the average and the marginal cost will increase.c. The average cost will increase but the average cost will decrease.d. Both the average and the marginal cost will decrease.
Why does the marginal cost of production typically increase as the amount of output produced increases?
a.A fixed factor of production causes diminishing marginal product
b.Increasing returns to scale
c.There are no fixed factors of production
d.Decreasing returns to scale
__________ refers to the additional cost spent to produce one more unit of the product.
a.
Marginal cost
b.
Money cost
c.
Sunk cost
d.
Average cost
Knowledge Booster
Similar questions
- Question 3 Which one of the following is a fixed cost for a handmade furniture manufacturer? The cost of wood Labour costs The rent on the workshop The cost of glue and screwsarrow_forwardWhich of the following is an implicit cost to a firm that produces a good or service? A. Labor costsB. Costs of operating production machineryC. Foregone profits of producing a different good or serviceD. Costs of renting or buying land for a production sitearrow_forwardAsap Total cost can be divided into two types. What are those two types? Select one: a. fixed costs and average costs b. fixed costs and variable costs c. average costs and marginal costs d. fixed costs and marginal costsarrow_forward
- Please help solve for (b) what is long run cost in a?arrow_forwardDesignated cost incurred by the short-run firm. Select one: a. fixed cost b. total cost c. variable cost d. average costarrow_forwardAverage total cost, average variable cost marginal cost and marginal product a. Why is the gap or difference between average total cost and average variable cost larger at initial level of production ction and then the gap is decreasing as output increases? Explain.arrow_forward
- what is meant by the term Cost of production? Distinguish between fixed and variable cost. Why short run average cost and marginal cost curve generally U-Shaped?arrow_forwardIf a firm will produce an additional unit of good or services, determine what will happen to their costs? a. The total cost will decrease O b. The total cost will be the same O . The total cost will be equal O d. The total cost will increasearrow_forwardWhich of the following is the extra, or additional, cost of producing one more unit of output? Select one: a. Marginal cost Ob. Average fixed cost Oc. Total variable cost Od. Average variable costarrow_forward
- When the volume of production is higher than the volume of production at break even point than the maximum increase of fixed cost in order to not cause a. Current variable cost b. Current amount of profit c. Current amount of sales d. Current direct costarrow_forwardThe cost that cannot be recovered if a firm goes out of business is known as __________. a. Cost of production b. Sunk cost c. Actual cost d. Direct costarrow_forwardUNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE COST AVERAGE VARIABLE COST TOTAL FIXED TOTAL AVERAGE TOTAL MARGINAL COST COST COST COST 012345678 0 $1 $2 6 $1 2 15 $1 27 $1 37 $1 45 $1 50 $1 52 $1 50 $1 ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ $2 $2 $2 $2 $2 $2 $2 $2arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning