SR Production costs

A cost that is included in economic profit

• Implicit Cost

• Marginal Cost

• Average Cost

• Economic Cost

If a firm does not produce any output, its total cost is equal to

• Zero

• Its fixed costs

• Its variable costs

• Its marginal cost

The main difference between the SR and the LR is that 

• the law of diminishing returns applies in the LR
• all resources are variable in the LR
• fixed costs are more important to decision making in the LR
• in the SR all resources are fixed 

Total Costs / Quantity = _____

• Marginal Cost
• Average Total Cost
• Implicit Cost
• Explicit Cost

Change in Total Revenue/Change in Quantity
ΔTR/ΔQ = _____

• Marginal cost
• Marginal Revenue
• Profit
• Marginal Profit

The average fixed cost of producing 3 units of output is

• $8
• $7.40
• $5.50
• $6

For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?

• the $20 million payment that the firm pays each year for accounting services

• the cost of the steel that is used in producing automobiles

• the rent that the firm pays for office space in a suburb of St. Louis

• All of the above are correct.

Cindy’s Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). The firm's total cost is

• $100

• $200

• $300

• $500

If a bakery can produce 100 cupcakes for $100 and 200 cupcakes for $150, what is the marginal cost per cupcake for the additional 100 cupcakes?

• $0.25

• $1.00

• $0.50

• $0.75

Tony opens up a hot chocolate stand for two hours.  He spends $10 for ingredients and sells $60 worth of tasty beverages.  In the same two hours, he could have provided Uber services (illegally because he isn't 18) and earned $40.  Tony's accounting profit is ____ and an economic profit of ____.

• $50, $10
• $90, $50
• $10, $50
• _{$50, $90}