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WorksheetsCOST OF PRODUCTION, SHORT AND LONG RUN
Total questions: 10
Worksheet time: 3hrs 30mins
ΔTR/ΔQ = _____
P x Q = _____
Economists usually assume that ________ is a fixed input in the ________ run.
labor; short
capital; short
labor; long
capital; long
Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $5 and its total variable cost is $300. What is the total cost of producing 100 widgets?
$300
$400
$700
$800
If a firm's total costs are $100 when 10 units of output are produced and $103 when 11 units of output are produced, the marginal cost of the 11th unit is
$2
$3
$5
$7
In the long run, ______________________.
all costs are fixed costs.
all costs are variable cost.
at least one is a fixed cost.
none of the above occurs
Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output?
production technique A
production technique B
The firm is indifferent between production technique A and production technique B.
It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given.
