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WorksheetsCHAPTER 6 - PRODUCTION COST
Total questions: 10
Worksheet time: 4mins
As output increases, average fixed costs will ________________
decrease
increase
remain constant
initially it is decreases and then it increases
Assume the in the short run, a firm which is produces 10 units of output has an average variable cost of RM22, an average fixed cost of RM5 and a marginal cost is RM30. The firm's total cost is
RM27
RM52
RM180
RM270
The vertical distance between the firm's average cost and average variable cost curves represents ____________
average fixed cost
marginal cost
total cost
variable cost
A firm will experience lower long run average costs when its production increases. This is because _____________
fixed factors are utilized efficiently
the firm can prevent other firms from entering the market
the firm enjoys the benefits of economic of scale
the firm receives financial assistance from the government
Find the value of variable cost when there is no output produce in the short run period.
RM0
RM5
RM20
RM30
Which of the following is a fixed cost?
Rental
Raw of material costs
Transportation fuel costs
Electricity bill costs
Diseconomies of scale is reflected by the ____________
decrease in the long run average cost
increase in the long run average cost
increase in short run marginal cost
decrease in long run price
Irham Holding has RM3,000 of variable costs and RM800 of fixed costs when its output is 200 units. Calculate the average total cost at this output level.
RM11
RM13
RM15
RM19
Economics of scales describes relationship between _____________
the increased costs per unit of production and efficiency
the decreased cost per unit of production and efficiency
the increased costs per unit of production and inefficiency
the reduction cost per unit of production and inefficiency
Which of the following does NOT contribute to the internal economy of scale?
Specialization can increase the efficiency of labor
The scarcity of raw materials happens because the average cost starts rising
Large firms can provide scholarships or donations to society
A large firm can easily obtain loans from the financial institutions
