AMU ECON 201 Week 5 Quiz; Answered Overall Grade (Highest Attempt) 210 / 210 - 100%.

Average variable cost is: the difference between average total cost and total variable cost. the difference between total cost and total variable cost. Which of the following is (are) correct? Firms are organizations that produce goods and services. For a restaurant: labor and food would be variable factors of production. Diminishing marginal returns means that: each additional unit of an input used will increase output by larger and larger amounts. When marginal cost is below average variable cost, average variable cost must be: rising. If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is: $50. $300. In the long run: all inputs are fixed. A factor of production whose quantity can be changed during a particular period is a: marginal factor of production. Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencing: The sum of fixed and variable costs is: marginal cost. variable cost. average cost. (Exhibit: Costs of Producing Bagels) The total cost of producing six bagels is: $0.10. (Exhibit: Costs of Producing Bagels) The average total cost of producing six bagels is: $0.20. $0.80. (Exhibit: Costs of Producing Bagels) The marginal cost of producing the sixth bagel is: $0.80. (Exhibit: Costs of Producing Bagels) The total cost of producing two bagels is: $0.50. (Exhibit: Short-Run Costs) Curve A is the cost curve. total (Exhibit: Short-Run Costs) Curve B is the cost curve. average variable marginal total (Exhibit: Short-Run Costs) Curve A crosses the average variable cost curve at: approximately 5.3 units of output. the minimum value of curve B. the level of output where diminishing marginal returns begin. (Exhibit: Short-Run Costs) Curve A crosses the average total cost curve at: approximately 4.3 units of output. approximately 2.8 units of output. none of the above points. the level of output where diminishing marginal returns begin. (Exhibit: Short-Run Costs) Curve A crosses the average total cost curve at: approximately 4.3 units of output. approximately 2.8 units of output. none of the above points. (Exhibit: Short-Run Costs) Curve A declines from a cost of about $50 and a quantity of 1 to a cost of about $40 and a quantity of 2 (point F) at which time it rises again. The declining segment is due to marginal returns, and the rising segment is due to marginal returns. increasing; constant (Exhibit: Short-Run Costs) At 7 units of output, average fixed cost is approximately , and average variable cost is approximately . $140; $140