What happens when marginal cost is added that is less than the total average cost?
A. Average total cost will rise.
B. Total cost will rise.
C. Average total cost and total cost will rise.
D. Average total cost and total cost will fall.
E. Both A and B.
Which of the following will shift a cost curve for a T-shirt manufacturer?
A. The price of cotton increases.
B. The minimum wage level increases.
C. The price of power increases.
D. The price of ink increases.
E. All of the above.
How is revenue for a firm calculated?
A. By taking profit minus all costs
B. By taking revenue minus costs
C. By multiplying quantities by product price
D. By multiplying product price by total costs
E. By adding fixed costs to variable costs
Which one of the following can contribute to diseconomies of scale?
A. Technology
B. Specialization
C. Miscommunication
D. Decreasing costs
E. All of the above
What is the difference between the long run and the short run?
A. The difference lies in calendar time periods.
B. The long run has fixed costs, and the short run has variable costs.
C. The short run is actually longer than the long run.
D. The long run is no more than three months.
E. The long run is when costs are variable, and the short run is when costs are fixed.
Which of the following would be considered a short-run cost?
A. Factory space
B. Machinery
C. Labor
D. Time
E. None of the above- How is average total cost calculated?
A. By dividing the total cost by quantity
B. By multiplying variable costs by quantity
C. By dividing variable costs by fixed costs
D. By multiplying the fixed costs by quantity
E. By dividing variable costs by quantityProduction Costs