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WorksheetsProduction Costs
Total questions: 12
Worksheet time: 10mins
Wages and salaries paid to workers are an example of implicit costs of production.
True
False
Which of the following is a variable cost in the short run?
rent of the factory
wages paid to factory workers
interest payments on borrowed financial capital
salaries paid to upper management
If marginal costs equal average total costs,
average total costs are falling.
average total costs are rising.
average total costs are maximized.
average total costs are minimized.
The efficient scale of production is the quantity of output that minimizes
average fixed cost.
average total cost.
average variable cost.
marginal cost.
"Economies of Scale" is the phase of increasing long run average total costs
True
False
A cost that is included in economic profit
Implicit Cost
Marginal Cost
Average Cost
Economic Cost
Average Total Costs are calculated by dividing Total Costs by
Price
Quantity or units produced
Average Variable Costs
Revenue
If a firm does not produce any output, its total cost in the short run is equal to
Zero
Its fixed costs
Its variable costs
Its marginal cost
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.
