Average total cost is equal to
a. total cost divided by the number of workers.
b. marginal cost plus variable cost.
c. average fixed cost minus average variable cost.
d. total cost divided by the quantity of output produced.
23) Adam spent $10,000 on new equipment for his small business, “Adam’s Fitness Studio.” Membership at his fitness center is very low and at this rate, Adam needs an additional $12,000 per year to keep his studio open. Which of the following is true?
a. The variable cost of running the studio is $22,000.
b. The fixed cost of running the studio is $22,000.
c. The $10,000 Adam spent on equipment is the total cost of starting the business and the $12,000 he’ll need to continue operations is a marginal cost.
d. The $10,000 Adam spent on equipment is a fixed cost of business and the $12,000 he’ll need to continue operations is a variable cost.
24) Long run average cost curves are U-shaped because
a. of the law of diminishing returns.
b. of the law of demand.
c. of economies and diseconomies of scale.
d. of the law of supply.
25) Manufacturers of flat-panel televisions expect continued rapid increases in the demand for their products. In response to this forecast, manufacturers are building increasingly larger plants. At the same time, they expect to sell flat-panel televisions at lower prices. Which of the following must be true if manufacturers plan to lower prices and yet expect to cover the average cost of production in their larger plants?
a. They expect that the demand for flat-panels televisions is relatively elastic and therefore lowering prices will lead to an increase in total revenue which will comfortably cover the cost of production.
b. The cost of building a larger plant must be lower than the cost of building smaller plants.
c. Larger plants are more efficient than smaller plants because the bulk of the cost of production is fixed costs.
d. They expect that economies of scale will make the cost of production in the larger plants lower than the cost of production in the smaller plants.
Unit 3 Examination
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) “Between 1997 and 2001, many apple farmers switched from traditional to organic
growing methods, increasing production of organically grown apples from 1.2 million
boxes per year to more than 3 million boxes.” If the market for organic apples is per-
fectly competitive, which of the following statements is inconsistent with the state-
a. Organic apple farmers earned short-run economic profits between 1997 and 2001.
b. The price of organic apples is likely to rise over time as more and more farmers switch
to organic methods of farming.
c. The additional supply of organic apples resulted in a lower price for organic apples.
d. It is relatively easy to enter the organic apples market.
Exemplary Academic Writing Service
At TheQuizlet.com, you are guaranteed of quality service from our professional writers. We maintain consistent communication with customers after placing an order to avoid missing anything that may compromise the quality of delivered work.
Our hiring process is rigorous to maintain the desired quality that has become the core of our business. We expose potential writers to an uncompromising selection process that enables TheQuizlet to pick the best out of the rest. TheQuizlet boasts of a competent team of writers, editors, and professors who work towards accomplishing your goals.
TheQuizlet has an in-house plagiarism software that lowers the probability of delivering plagiarized papers to our clients. Referencing is guided by the format specified by a customer when placing an order. Our writers are conversant with all referencing formats that include APA, MLA, Chicago, Harvard, and Vancouver among others.
24/7 Customer Support
We understand the importance of effective communication and as such, TheQuizlet has a dedicated customer support department that responds to all client needs. You can easily contact our team through a chat window at the bottom left corner. Additionally, clients can reach us through support’s email or a telephone number available on our contact page. Feel free to contact us at any time and our team of experts will solve all your problems.
Swift Delivery and 100% Money-back Guarantee
When placing an order, ensure that you specify the correct deadline to help our writers work around the provided timeline. At TheQuizlet, we deliver our tasks before the projected deadline to give time for the customer to proofread the work before submission. In the event we cannot deliver a paper on time, we initiate contact with the client to renegotiate a new deadline.
Unlimited and Free Revisions
We urge all our customers to request for a revision whenever they identify a need to amend the paper. Since we understand your concerns, TheQuizlet.com does not charge for revisions. Nonetheless, we encourage customers to be genuine when requesting for revisions.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
TheQuizlet is a one-stop shop for all your writing needs. We tackle each customer’s needs differently to improve the quality of outcomes and meet your expectations.
TheQuizlet is committed to delivering quality work on time to ensure our clients get the value for their money.
Admission Essays and Professional Writing
Admission essays are personal, as opposed to other papers. For this reason, our team will request for any information that will enable them to deliver quality work, which allows you to convince the admissions board on why you should be granted the application.
Editing and Proofreading
Our team comprises of qualified researchers, writers, and editors who go through the different papers before delivering them to our clients. Whether your paper is being written from scratch or you want it to be edited, you can trust TheQuizlet for all your needs.
After receiving the final draft, you can request for a revision to incorporate various changes that are aligned with your expectations. All our papers are written in line with the latest writing standards.