1) The firm's marginal cost curve ____.
A) intersects the minimum point of both the AVC and ATC curve.
B) intersects the minimum point of the ATC curve only
C) intersects the minimum point of the AVC curve only
D) intersects the maximum point of both the AVC and ATC curve.
2) Which of the following might describe the behavior of a firm's cost in the short run?
A) Economies of scale
B) Diseconomies of scale
C) Constant returns to scale
D) None of the above
E) All the above
3) If the MPL rises over a particular range of output, then over that range ____.
A) ATC rises
B) MC rises
C) MC falls
D) ATC falls
E) Both MC and ATC rise
4) Which of the follwing is an example of an implicit cost to a farmer
A) The wages and salaries of the farm's workers
B) The rent that the farmer pays to the landowner
C) The interest the farmer must pay on bank loans
D) The monthly cost of seeds, fertilizer, and other raw materials
E) none of these
5) Whenever the marginal cost curve lies above the average total cost curve, an increase in output will cause_____.
A) the marginal cost curve to shift upward
B) the marginal cost curve to shift downward
C) the average total cost curve to shift upward
D) the average total cost curve to shift downward
E) None of these
6) In the short run, as output rises, the distance between the firms TC and TVC curve ____
A) increase
B) decrease
C) remains constant
D) first increases, then decreases
E) first decreases, then increase
7) The short run for a business firm is defined as a time period during which at least one of its inputs is variable? (TRUE/FALSE)
8) As output rises in the short run, ATC always rises (TRUE/FALSE)