SHORT RUN COST

. Exhibit 6.2 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:

• 4

• 10

• 14

• 6

The total variable cost of the 3rd unit is-

• 216

• 84

• 126

• 174

 The marginal cost of the 2nd unit is-

• 0

• 45

• 39

• 42

The average cost of producing the 4th    unit is-

• 66

• 48

• 67

• 49

57.The total fixed cost at the 3rd unit of      output is-

• 180

• 42

• 66

• 90

.Which one of the following is correct?

• TC = TFC × TVC

• A.    TC = TFC ÷ TVC

•   TC = TFC + TVC

•     TC = TFC – TVC

With fixed costs of RM 400, a firm has average total costs of RM 3 and average variable costs of RM 2.50. Its output is:

• 200 UNITS

• 400 UNITS

• 800 UNITS

• 1200 UNITS

 

At zero level of output Fixed Cost must be greater than Variable Cost.

• TRUE

• FALSE

 

If you know that with 8 units of output,average fixed cost is RM 12.50 and average variable cost is RM rm 81.25, then total cost at this output level

• rm 93.75.

• rm 97.78

• rm 750

• rm 880

Wages and Rent is the example of variable cost

• TRUE

• FALSE