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WorksheetsCHP 3: SHORT RUN COSTS
Total questions: 16
Worksheet time: 10mins
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.
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
The best definition for fixed costs is
Costs that do not depend on the level of production
Costs that do not change
Costs that increase when you produce more
The MC curve cuts AC at its
highest point
minimum point
ATC is a summation of
AFC and AVC
FC and VC
You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses. This is a...
fixed cost
variable cost
Which of the following is the best definition of costs?
The total amount of income a business makes from selling products or services.
The amount of money a business has left over after paying for materials.
The total amount of money a business spends.
In a firm, fixed costs are RM600, average costs are RM4, and the average variable costs are RM2. Total production of the firm is ________________.
100 units
150 units
200 units
300 units
Total cost is calculated as
the sum of total fixed cost and total variable cost.
the product of average total cost and price.
the sum of all the firm's explicit costs.
the sum of average fixed cost and average variable cost.
