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Chapter 13 - class notes plus practice exam
Introduction to Microeconomics (MacEwan University)
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Chapter 13 /The Costs of Production  369
Chapt
er13
TheCos
t
sofPr
oduc
t
i
on
MULTIPLECHOICE
1.
Ac
c
or
di
ngt
ot
hel
a
w ofs
uppl
y
,
a
. fir
ms
’pr
oduc
t
i
onl
e
ve
l
sar
enotc
or
r
e
l
a
t
e
dwi
t
ht
hepr
i
c
eofagood.
b.t
hes
uppl
yc
ur
ves
l
ope
sdownwar
d.
c
. fir
msar
ewi
l
l
i
ngt
opr
oduc
eagr
e
a
t
e
rquant
i
t
yofagoodwhe
nt
hepr
i
c
eoft
hegoodi
shi
ghe
r
.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
fir
msar
ewi
l
l
i
ngt
opr
oduc
eagr
e
a
t
e
rquant
i
t
yofagoodwhe
nt
hepr
i
c
eoft
hegoodi
shi
ghe
r
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
2.
I
ndus
t
r
i
alor
gani
za
t
i
oni
st
hes
t
udyofhow
a
.l
aboruni
onsor
gani
zewor
ke
r
si
ni
ndus
t
r
i
e
s
.
b.pr
ofit
abl
efir
msar
ei
nor
gani
ze
di
ndus
t
r
i
e
s
.
c
.i
ndus
t
r
i
e
sor
gani
zef
orpol
i
t
i
c
aladvant
a
ge
.
d.fir
ms
’de
c
i
s
i
onsr
e
gar
di
ngpr
i
c
e
sandquant
i
t
i
e
sde
pe
ndont
hemar
ke
tc
ondi
t
i
onst
he
yf
ac
e
.
ANSWER:
d.
fir
ms
’de
c
i
s
i
onsr
e
gar
di
ngpr
i
c
e
sandquant
i
t
i
e
sde
pe
ndont
hemar
ke
tc
ondi
t
i
onst
he
yf
ac
e
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
3.
Ec
onomi
s
t
snor
mal
l
yas
s
umet
ha
tt
hegoalofafir
mi
st
o
(
i
) s
e
l
lasmuc
hoft
he
i
rpr
oduc
taspos
s
i
bl
e
.
(
i
i
) s
e
tt
hepr
i
c
eoft
he
i
rpr
oduc
tashi
ghaspos
s
i
bl
e
.
(
i
i
i
) maxi
mi
zepr
ofit
.
a
.(
i
)and(
i
i
)
b.(
i
i
)and(
i
i
i
)
c
.(
i
i
i
)onl
y
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
(
i
i
i
)onl
y
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
4.
Theamountofmone
yt
ha
tafir
mr
e
c
e
i
ve
sf
r
om t
hes
al
eofi
t
sout
puti
sc
al
l
e
d
a
.t
ot
algr
os
spr
ofit
.
b.t
ot
alne
tpr
ofit
.
c
.t
ot
alr
e
ve
nue
.
d.ne
tr
e
ve
nue
.
ANSWER:
c
.
t
ot
alr
e
ve
nue
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
5.
Theamountofmone
yt
ha
tafir
m pa
yst
obuyi
nput
si
sc
al
l
e
d
a
.t
ot
alc
os
t
.
b.var
i
abl
ec
os
t
.
c
. mar
gi
nalc
os
t
.
d.fix
e
dc
os
t
.
ANSWER:
a
.
t
ot
alc
os
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
6.
Pr
ofiti
sde
fine
das
a
. ne
tr
e
ve
nuemi
nusde
pr
e
c
i
a
t
i
on.
b.t
ot
alr
e
ve
nuemi
nust
ot
alc
os
t
.
c
.a
ve
r
a
ger
e
ve
nuemi
nusa
ve
r
a
get
ot
alc
os
t
.
d.mar
gi
nalr
e
ve
nuemi
nusmar
gi
nalc
os
t
.
ANSWER:
b.
t
ot
alr
e
ve
nuemi
nust
ot
alc
os
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
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Chapter 13 /The Costs of Production  370
7.
Whi
c
hoft
hef
ol
l
owi
ngc
anbeadde
dt
opr
ofitt
oobt
ai
nt
ot
alr
e
ve
nue
?
a
. ne
tpr
ofit
b.c
api
t
alpr
ofit
c
. ope
r
a
t
i
onalpr
ofit
d.t
ot
alc
os
t
ANSWER:
d.
t
ot
alc
os
t
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
8.
Ec
onomi
s
t
snor
mal
l
yas
s
umet
ha
tt
hegoalofafir
mi
st
o
(
i
) makepr
ofitasl
ar
geaspos
s
i
bl
ee
ve
ni
fi
tme
ansr
e
duc
i
ngout
put
.
(
i
i
) makepr
ofitasl
ar
geaspos
s
i
bl
ee
ve
ni
fi
tme
ansi
nc
ur
r
i
ngahi
ghe
rt
ot
alc
os
t
.
(
i
i
i
) maker
e
ve
nueasl
ar
geaspos
s
i
bl
e
.
a
.(
i
)and(
i
i
)
b.(
i
)and(
i
i
i
)
c
.(
i
i
)and(
i
i
i
)
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
(
i
)and(
i
i
)
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
9.
Tot
alr
e
ve
nuee
qual
s
a
.t
ot
alout
putmul
t
i
pl
i
e
dbypr
i
c
epe
runi
tofout
put
.
b.t
ot
alout
putdi
vi
de
dbypr
ofit
.
c
.(
t
ot
alout
putmul
t
i
pl
i
e
dbys
al
e
spr
i
c
e
)–i
nve
nt
or
ys
ur
pl
us
.
d.(
t
ot
alout
putmul
t
i
pl
i
e
dbys
al
e
spr
i
c
e
)–i
nve
nt
or
ys
hor
t
a
ge
.
ANSWER:
a
.
t
ot
alout
putmul
t
i
pl
i
e
dbypr
i
c
epe
runi
tofout
put
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
10. Thos
et
hi
ngst
ha
tmus
tbef
or
gonet
oac
qui
r
eagoodar
ec
al
l
e
d
a
.s
ubs
t
i
t
ut
e
s
.
b.oppor
t
uni
t
yc
os
t
s
.
c
.e
xpl
i
c
i
tc
os
t
s
.
d.c
ompe
t
i
t
or
s
.
ANSWER:
b.
oppor
t
uni
t
yc
os
t
s
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
11. XYZc
or
por
a
t
i
onpr
oduc
e
d300uni
t
sofout
putbuts
ol
donl
y275oft
heuni
t
si
tpr
oduc
e
d.
Thea
ve
r
a
gec
os
tof
pr
oduc
t
i
onf
ore
ac
huni
tofout
putpr
oduc
e
dwas$100
.Ea
c
hoft
he275uni
t
ss
ol
dwass
ol
df
orapr
i
c
eof$95.
Tot
al
r
e
ve
nuef
ort
heXYZc
or
por
a
t
i
onwoul
dbe
a
. –$3,
875
.
b.$26,
125
.
c
. $28,
500
.
d.$30,
000
.
ANSWER:
b.
$26,
125
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
12. Expl
i
c
i
tc
os
t
s
a
.r
e
qui
r
eanout
l
a
yofmone
ybyt
hefir
m.
b.i
nc
l
udeal
loft
hefir
m’
soppor
t
uni
t
yc
os
t
s
.
c
.i
nc
l
udei
nc
omet
ha
ti
sf
or
gonebyt
hefir
m’
sowne
r
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
r
e
qui
r
eanout
l
a
yofmone
ybyt
hefir
m.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
13. Whi
c
hoft
hef
ol
l
owi
ngwoul
dbec
a
t
e
gor
i
ze
dasa
ni
mpl
i
c
i
tc
os
t
?
(
i
) wa
ge
sofwor
ke
r
s
(
i
i
) r
a
w ma
t
e
r
i
alc
os
t
s
(
i
i
i
)f
or
gonei
nve
s
t
me
ntoppor
t
uni
t
i
e
s
a
.(
i
)and(
i
i
i
)
b.(
i
i
i
)onl
y
c
.(
i
i
)and(
i
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
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Chapter 13 /The Costs of Production  371
14. Ane
xampl
eofane
xpl
i
c
i
tc
os
tofpr
oduc
t
i
onwoul
dbe
a
.t
hec
os
toff
or
gonel
abore
ar
ni
ngsf
orane
nt
r
e
pr
e
ne
ur
.
b.t
hel
os
toppor
t
uni
t
yt
oi
nve
s
ti
not
he
rc
api
t
almar
ke
t
swhe
nt
hemone
yi
si
nve
s
t
e
di
none
’
sbus
i
ne
s
s
.
c
.t
hec
os
tofflourf
orabake
r
.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
t
hec
os
tofflourf
orabake
r
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
15. Whi
c
hoft
hef
ol
l
owi
ngi
sani
mpl
i
c
i
tc
os
t
?
(
i
) t
heowne
rofafir
mf
or
goi
nganoppor
t
uni
t
yt
oe
a
r
nal
ar
ges
al
ar
ywor
ki
ngf
oraWal
lSt
r
e
e
tbr
oke
r
a
gefir
m
(
i
i
) i
nt
e
r
e
s
tpai
dont
hefir
m’
sde
bt
(
i
i
i
)r
e
ntpai
dbyt
hefir
mt
ol
e
as
eoffic
es
pac
e
a
.(
i
i
)and(
i
i
i
)
b.(
i
)and(
i
i
i
)
c
.(
i
)onl
y
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
(
i
)onl
y
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
16. Ane
xampl
eofani
mpl
i
c
i
tc
os
tofpr
oduc
t
i
onwoul
dbe
a
.t
hei
nc
omeane
nt
r
e
pr
e
ne
urc
oul
dha
vee
ar
ne
dwor
ki
ngf
ors
ome
onee
l
s
e
.
b.t
hec
os
tofr
a
w ma
t
e
r
i
al
sf
orpr
oduc
i
ngbr
e
adi
nabake
r
y
.
c
.t
hec
os
tofade
l
i
ve
r
yt
r
uc
ki
nabus
i
ne
s
st
ha
tr
ar
e
l
ymake
sde
l
i
ve
r
i
e
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
t
hei
nc
omeane
nt
r
e
pr
e
ne
urc
oul
dha
vee
ar
ne
dwor
ki
ngf
ors
ome
onee
l
s
e
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
17. Toane
c
onomi
s
t
,t
hefie
l
dofi
ndus
t
r
i
alor
gani
za
t
i
onans
we
r
swhi
c
hoft
hef
ol
l
owi
ngque
s
t
i
ons
?
a
. Whyar
ec
ons
ume
r
ss
ubj
e
c
tt
ot
hel
a
w ofde
mand?
b.Whydofir
mse
xpe
r
i
e
nc
ef
al
l
i
ngmar
gi
nalpr
oduc
tofl
abor
?
c
. How doe
st
hedi
ffe
r
e
nc
ei
nt
henumbe
roffir
msaffe
c
tpr
i
c
e
sandt
hee
ffic
i
e
nc
yofmar
ke
tout
c
ome
s
?
d.Whydofir
msc
ons
i
de
rpr
oduc
t
i
onc
os
t
swhe
nde
t
e
r
mi
ni
ngpr
oduc
ts
uppl
y?
ANSWER:
c
.
How doe
st
hedi
ffe
r
e
nc
ei
nt
henumbe
roffir
msaffe
c
tpr
i
c
e
sandt
hee
ffic
i
e
nc
yofmar
ke
tout
c
ome
s
?
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
18. Ac
c
ount
ant
sar
epr
i
mar
i
l
yi
nt
e
r
e
s
t
e
di
nt
he
a
. flow ofmone
yi
nt
oandoutoffir
ms
.
b.s
t
oc
kofas
s
e
t
soffir
ms
.
c
. mar
gi
nalc
os
t
sofpr
oduc
t
i
onoffir
ms
.
d.t
ax
e
sdueonc
api
t
alas
s
e
t
soffir
ms
.
ANSWER:
a
.
flow ofmone
yi
nt
oandoutoffir
ms
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
19. J
ohnownsas
hoe
s
hi
nebus
i
ne
s
s
.Hi
sac
c
ount
antmos
tl
i
ke
l
yi
nc
l
ude
swhi
c
hoft
hef
ol
l
owi
ngc
os
t
sonhi
sfinanc
i
al
s
t
a
t
e
me
nt
s
?
a
. wa
ge
sJ
ohnc
oul
de
ar
nwas
hi
ngwi
ndows
b.di
vi
de
ndsJ
ohn’
smone
ywase
ar
ni
ngi
nt
hes
t
oc
kmar
ke
tbe
f
or
eJ
ohns
ol
dhi
ss
t
oc
kandboughtas
hoe
s
hi
ne
boot
h
c
.t
hec
os
tofs
hoepol
i
s
h
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
t
hec
os
tofs
hoepol
i
s
h
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
20. Whi
c
hoft
hef
ol
l
owi
ngc
os
t
swoul
dber
e
gar
de
dasani
mpl
i
c
i
tc
os
t
?
a
.t
hec
os
tofac
c
ount
i
ngs
e
r
vi
c
e
s
b.t
heoppor
t
uni
t
yc
os
toffinanc
i
alc
api
t
alt
ha
thasbe
e
ni
nve
s
t
e
di
nt
hebus
i
ne
s
s
c
.t
hec
os
tofc
ompl
i
anc
ewi
t
hgove
r
nme
ntr
e
gul
a
t
i
on
d.al
lc
os
t
st
ha
ti
nvol
veout
l
a
ysofmone
ybyt
hefir
m
ANSWER:
b.
t
heoppor
t
uni
t
yc
os
toffinanc
i
alc
api
t
alt
ha
thasbe
e
ni
nve
s
t
e
di
nt
hebus
i
ne
s
s
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
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Chapter 13 /The Costs of Production  372
21. Whi
c
hoft
hef
ol
l
owi
ngi
sani
mpl
i
c
i
tc
os
tofowni
ngabus
i
ne
s
s
?
(
i
) i
nt
e
r
e
s
te
xpe
ns
eone
xi
s
t
i
ngbus
i
ne
s
sl
oans
(
i
i
) f
or
gones
a
vi
ngsac
c
ounti
nt
e
r
e
s
twhe
npe
r
s
onalmone
yi
si
nve
s
t
e
di
nt
hebus
i
ne
s
s
(
i
i
i
) dama
ge
dorl
os
ti
nve
nt
or
y
a
.(
i
)onl
y
b.(
i
i
)onl
y
c
.(
i
)and(
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
(
i
i
)onl
y
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
22. Theamountofmone
yt
ha
tawhe
a
tf
ar
me
rc
oul
dha
vee
ar
ne
di
fhehadpl
ant
e
dbar
l
e
yi
ns
t
e
adofwhe
a
ti
s
a
. ane
xpl
i
c
i
tc
os
t
.
b.anac
c
ount
i
ngc
os
t
c
. ani
mpl
i
c
i
tc
os
t
.
d.f
or
goneac
c
ount
i
ngpr
ofit
.
ANSWER:
c
.
ani
mpl
i
c
i
tc
os
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
Us
et
hef
ol
l
owi
ngi
nf
or
ma
t
i
ont
oans
werques
t
i
ons23and24.
J
oewant
st
os
t
ar
thi
sownbus
i
ne
s
s
.Thebus
i
ne
s
shewant
st
os
t
ar
twi
l
lr
e
qui
r
et
ha
thepur
c
has
eaf
a
c
t
or
yt
ha
tc
os
t
s
$300,
000
.Tofinanc
et
hi
spur
c
has
e
,hewi
l
lus
e$100,
000ofhi
sownmone
y
,onwhi
c
hhehasbe
e
ne
ar
ni
ng10pe
r
c
e
nti
nt
e
r
e
s
t
.
I
naddi
t
i
on,hewi
l
lbor
r
ow $200
,
000,
andhewi
l
lpa
y12pe
r
c
e
nti
nt
e
r
e
s
tont
ha
tl
oan.
23. Fort
hefir
s
tye
arofope
r
a
t
i
on,
wha
ti
st
hee
xpl
i
c
i
tc
os
tofpur
c
has
i
ngt
hef
ac
t
or
y?
a
. $12,
000
b.$20,
000
c
. $24,
000
d.$44,
000
ANSWER:
c
.
$24,
000
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
24. Fort
hefir
s
tye
arofope
r
a
t
i
on,
wha
ti
st
heoppor
t
uni
t
yc
os
tofpur
c
has
i
ngt
hef
ac
t
or
y?
a
. $10,
000
b.$20,
000
c
. $24,
000
d.$34,
000
ANSWER:
d.
$34,
000
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
25. Ec
onomi
cpr
ofiti
se
qualt
o
a
.t
ot
alr
e
ve
nuemi
nust
hee
xpl
i
c
i
tc
os
tofpr
oduc
i
nggoodsands
e
r
vi
c
e
s
.
b.t
ot
alr
e
ve
nuemi
nust
heoppor
t
uni
t
yc
os
tofpr
oduc
i
nggoodsands
e
r
vi
c
e
s
.
c
.t
ot
alr
e
ve
nuemi
nust
heac
c
ount
i
ngc
os
tofpr
oduc
i
nggoodsands
e
r
vi
c
e
s
.
d.a
ve
r
a
ger
e
ve
nuemi
nust
hea
ve
r
a
gec
os
tofpr
oduc
i
ngt
hel
as
tuni
tofagoodors
e
r
vi
c
e
.
ANSWER:
b.
t
ot
alr
e
ve
nuemi
nust
heoppor
t
uni
t
yc
os
tofpr
oduc
i
nggoodsands
e
r
vi
c
e
s
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
26. Ac
c
ount
i
ngpr
ofiti
se
qualt
o
a
. mar
gi
nalr
e
ve
nuemi
nusmar
gi
nalc
os
t
.
b.t
ot
alr
e
ve
nuemi
nust
hee
xpl
i
c
i
tc
os
tofpr
oduc
i
nggoodsands
e
r
vi
c
e
s
.
c
.t
ot
alr
e
ve
nuemi
nust
heoppor
t
uni
t
yc
os
tofpr
oduc
i
nggoodsands
e
r
vi
c
e
s
.
d.a
ve
r
a
ger
e
ve
nuemi
nust
hea
ve
r
a
gec
os
tofpr
oduc
i
ngt
hel
as
tuni
tofagoodors
e
r
vi
c
e
.
ANSWER:
b.
t
ot
alr
e
ve
nuemi
nust
hee
xpl
i
c
i
tc
os
tofpr
oduc
i
nggoodsands
e
r
vi
c
e
s
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
Downloaded by Madina Walizada (madina.walizada1382@gmail.com)
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Chapter 13 /The Costs of Production  373
27. Ec
onomi
cpr
ofiti
se
qualt
o
(
i
) t
ot
alr
e
ve
nue–(
e
xpl
i
c
i
tc
os
t
s+i
mpl
i
c
i
tc
os
t
s
)
.
(
i
i
) t
ot
alr
e
ve
nue–oppor
t
uni
t
yc
os
t
s
.
(
i
i
i
) ac
c
ount
i
ngpr
ofit+i
mpl
i
c
i
tc
os
t
s
.
a
.(
i
)onl
y
b.(
i
)and(
i
i
)
c
.(
i
i
)and(
i
i
i
)
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
(
i
)and(
i
i
)
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
28. Ac
c
ount
i
ngpr
ofiti
se
qualt
o
(
i
) t
ot
alr
e
ve
nue–i
mpl
i
c
i
tc
os
t
s
.
(
i
i
) t
ot
alr
e
ve
nue–oppor
t
uni
t
yc
os
t
s
.
(
i
i
i
)e
c
onomi
cpr
ofit+i
mpl
i
c
i
tc
os
t
s
.
a
.(
i
)onl
y
b.(
i
i
i
)onl
y
c
.(
i
)and(
i
i
)
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
(
i
i
i
)onl
y
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
29. Ec
onomi
cpr
ofit
a
. wi
l
lne
ve
re
x
c
e
e
dac
c
ount
i
ngpr
ofit
.
b.i
smos
tof
t
e
ne
qualt
oac
c
ount
i
ngpr
ofit
.
c
.i
sal
wa
ysa
tl
e
as
tasl
ar
geasac
c
ount
i
ngpr
ofit
.
d.i
sal
e
s
sc
ompl
e
t
eme
as
ur
eofpr
ofit
abi
l
i
t
yt
hanac
c
ount
i
ngpr
ofit
.
ANSWER:
a
.
wi
l
lne
ve
re
x
c
e
e
dac
c
ount
i
ngpr
ofit
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
30. Toane
c
onomi
s
t
,i
ti
sc
onc
e
i
vabl
et
ha
tt
heobj
e
c
t
i
vet
ha
tmot
i
va
t
e
sani
ndi
vi
duale
nt
r
e
pr
e
ne
urt
os
t
ar
tabus
i
ne
s
s
ar
i
s
e
sf
r
om
a
. ani
nna
t
el
ovef
ort
het
ypeofbus
i
ne
s
st
ha
theors
hes
t
ar
t
s
.
b.ade
s
i
r
et
oe
ar
napr
ofit
.
c
. anal
t
r
ui
s
t
i
cde
s
i
r
et
opr
ovi
det
hewor
l
dwi
t
hagoodpr
oduc
t
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
31. Whe
nafir
mi
smaki
ngapr
ofit
maxi
mi
zi
ngpr
oduc
t
i
onde
c
i
s
i
on,whi
c
hoft
hef
ol
l
owi
ngpr
i
nc
i
pl
e
sofe
c
onomi
c
si
s
l
i
ke
l
yt
obemos
ti
mpor
t
antt
ot
hefir
m’
sde
c
i
s
i
on?
a
. Thec
os
tofs
ome
t
hi
ngi
swha
tyougi
veupt
oge
ti
t
.
b.A c
ount
r
y'
ss
t
andar
dofl
i
vi
ngde
pe
ndsoni
t
sabi
l
i
t
yt
opr
oduc
egoodsands
e
r
vi
c
e
s
.
c
. Pr
i
c
e
sr
i
s
ewhe
nt
hegove
r
nme
ntpr
i
nt
st
oomuc
hmone
y
.
d.Gove
r
nme
nt
sc
ans
ome
t
i
me
si
mpr
ovemar
ke
tout
c
ome
s
.
ANSWER:
a
.
Thec
os
tofs
ome
t
hi
ngi
swha
tyougi
veupt
oge
ti
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
32. Gor
doni
sas
e
ni
orma
j
or
i
ngi
nc
omput
e
rne
t
wor
kde
ve
l
opme
nta
tSmar
tSt
a
t
eUni
ve
r
s
i
t
y
.Whi
l
ehehasbe
e
n
a
t
t
e
ndi
ngc
ol
l
e
ge
,Gor
dons
t
ar
t
e
dac
omput
e
rc
ons
ul
t
i
ngbus
i
ne
s
st
ohe
l
ps
e
ni
orc
i
t
i
ze
nss
e
tupt
he
i
rne
t
wor
k
c
onne
c
t
i
onsandt
e
ac
ht
he
m how t
ous
ee
mai
l
.Gor
donc
har
ge
s$25pe
rhourf
orhi
sc
ons
ul
t
i
ngs
e
r
vi
c
e
s
.
Gor
donal
s
o
wor
ks5hour
sawe
e
kf
ort
heEc
onomi
c
sDe
par
t
me
ntt
omai
nt
ai
nt
ha
tde
par
t
me
nt
’
sWe
bpa
ge
.TheEc
onomi
c
s
De
par
t
me
ntpa
ysGor
don$20pe
rhour
.Fr
om t
hi
si
nf
or
ma
t
i
onwec
anc
onc
l
ude
:
a
. Gor
dons
houl
di
nc
r
e
as
et
henumbe
rofhour
shewor
ksf
ort
heEc
onomi
c
sDe
par
t
me
ntt
omakei
tc
ompar
abl
et
o
hi
sc
ons
ul
t
i
ngbus
i
ne
s
si
nc
ome
.
b.Gor
doni
sobvi
ous
l
ynotmaxi
mi
zi
nghi
swe
l
l
be
i
ngi
fhec
ont
i
nue
st
owor
kf
ort
heEc
onomi
c
sDe
par
t
me
nt
.
c
.I
fGor
donc
hoos
e
sonehoura
tt
hebe
ac
hwi
t
hhi
sf
r
i
e
ndsr
a
t
he
rt
hans
pe
ndonemor
ehourwi
t
hac
ons
ul
t
i
ng
c
l
i
e
nt
,t
hef
or
gonei
nc
omeof$25i
sc
ons
i
de
r
e
dac
os
toft
hec
hoi
c
et
ogot
ot
hebe
ac
h.
d.I
ft
heEc
onomi
c
sDe
par
t
me
ntoffe
r
sGor
donaf
ul
l
t
i
mej
obhewi
l
lde
fini
t
e
l
ynott
aket
hej
oboffe
r
.
ANSWER:
c
.
I
fGor
donc
hoos
e
sonehoura
tt
hebe
ac
hwi
t
hhi
sf
r
i
e
ndsr
a
t
he
rt
hans
pe
ndonemor
ehourwi
t
ha
c
ons
ul
t
i
ngc
l
i
e
nt
,t
hef
or
gonei
nc
omeof$25i
sc
ons
i
de
r
e
dac
os
toft
hec
hoi
c
et
ogot
ot
hebe
ac
h.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
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Chapter 13 /The Costs of Production  374
33. Ec
onomi
s
t
snor
mal
l
yas
s
umet
ha
tt
hegoalofafir
mi
st
o
a
. maxi
mi
zei
t
st
ot
alr
e
ve
nue
.
b.maxi
mi
zei
t
spr
ofit
.
c
. mi
ni
mi
zei
t
se
xpl
i
c
i
tc
os
t
s
.
d.mi
ni
mi
zei
t
st
ot
alc
os
t
.
ANSWER:
b.
maxi
mi
zei
t
spr
ofit
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
34. Expl
i
c
i
tc
os
t
s
a
.r
e
qui
r
eanout
l
a
yofmone
ybyt
hefir
m.
b.e
nt
e
ri
nt
ot
heac
c
ount
ant
’
sme
as
ur
e
me
ntofafir
m’
spr
ofit
.
c
.e
nt
e
ri
nt
ot
hee
c
onomi
s
t
’
sme
as
ur
e
me
ntofafir
m’
spr
ofit
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
35. A c
e
r
t
ai
nfir
m manuf
ac
t
ur
e
sands
e
l
l
sc
omput
e
rc
hi
ps
.La
s
tye
ar
,i
ts
ol
d2mi
l
l
i
onc
hi
psa
tapr
i
c
eof$10pe
rc
hi
p.For
l
as
tye
ar
,t
hefir
m’
s
a
. ac
c
ount
i
ngpr
ofitamount
e
dt
o$20mi
l
l
i
on.
b.e
c
onomi
cpr
ofitamount
e
dt
o$20mi
l
l
i
on.
c
.t
ot
alr
e
ve
nueamount
e
dt
o$20mi
l
l
i
on.
d.e
xpl
i
c
i
tc
os
t
samount
e
dt
o$20mi
l
l
i
on.
ANSWER:
c
.
t
ot
alr
e
ve
nueamount
e
dt
o$20mi
l
l
i
on.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
36. A fir
m’
soppor
t
uni
t
yc
os
t
sofpr
oduc
t
i
onamountt
oi
t
s
a
.e
xpl
i
c
i
tc
os
t
sonl
y
.
b.i
mpl
i
c
i
tc
os
t
sonl
y
.
c
.e
xpl
i
c
i
tc
os
t
s+i
mpl
i
c
i
tc
os
t
s
.
d.e
xpl
i
c
i
tc
os
t
s+i
mpl
i
c
i
tc
os
t
s+t
ot
alr
e
ve
nue
.
ANSWER:
c
.
e
xpl
i
c
i
tc
os
t
s+i
mpl
i
c
i
tc
os
t
s
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
37. Whi
c
hoft
hef
ol
l
owi
nge
xpr
e
s
s
i
onsi
sc
or
r
e
c
t
?
a
. ac
c
ount
i
ngpr
ofit=t
ot
alr
e
ve
nue–e
xpl
i
c
i
tc
os
t
s
.
b.e
c
onomi
cpr
ofit=t
ot
alr
e
ve
nue–t
ot
aloppor
t
uni
t
yc
os
t
s
.
c
.e
c
onomi
cpr
ofit=t
ot
alr
e
ve
nue–e
xpl
i
c
i
tc
os
t
s–i
mpl
i
c
i
tc
os
t
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
38. Whi
c
hoft
hef
ol
l
owi
nge
xpr
e
s
s
i
onsi
sc
or
r
e
c
t
?
a
. ac
c
ount
i
ngpr
ofit=e
c
onomi
cpr
ofit+i
mpl
i
c
i
tc
os
t
s
b.ac
c
ount
i
ngpr
ofit=t
ot
alr
e
ve
nue–i
mpl
i
c
i
tc
os
t
s
c
.e
c
onomi
cpr
ofit=ac
c
ount
i
ngpr
ofit+e
xpl
i
c
i
tc
os
t
s
d.e
c
onomi
cpr
ofit=t
ot
alr
e
ve
nue–i
mpl
i
c
i
tc
os
t
s
ANSWER:
a
.
ac
c
ount
i
ngpr
ofit=e
c
onomi
cpr
ofit+i
mpl
i
c
i
tc
os
t
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
39. Sus
anus
e
dt
owor
kasat
e
l
e
mar
ke
t
e
r
,e
ar
ni
ng$2
5
,
000pe
rye
ar
.Shega
veupt
ha
tj
obt
os
t
ar
tac
a
t
e
r
i
ngbus
i
ne
s
s
.I
n
c
al
c
ul
a
t
i
ngt
hee
c
onomi
cpr
ofitofhe
rc
a
t
e
r
i
ngbus
i
ne
s
s
,
t
he$25
,
000i
nc
omet
ha
ts
hega
veupi
sc
ount
e
daspar
toft
he
c
a
t
e
r
i
ngfir
m’
s
a
.t
ot
alr
e
ve
nue
.
b.oppor
t
uni
t
yc
os
t
s
.
c
.e
xpl
i
c
i
tc
os
t
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
oppor
t
uni
t
yc
os
t
s
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
1
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Chapter 13 /The Costs of Production  375
Ref
ert
ot
hef
ol
l
owi
ngi
nf
or
ma
t
i
ont
oans
werQues
t
i
ons40and41.
Zac
ht
ook$500,
000outoft
hebankandus
e
di
tt
os
t
ar
thi
sne
wc
ooki
ebus
i
ne
s
s
.Thebankac
c
ountpa
ys4pe
r
c
e
nti
nt
e
r
e
s
t
pe
rye
ar
.
Dur
i
ngt
hefir
s
tye
arofhi
sbus
i
ne
s
s
,Zac
hs
ol
d12
,
000box
e
sofc
ooki
e
sf
or$3pe
rbox
.Al
s
o,
dur
i
ngt
hefir
s
tye
ar
,
t
hec
ooki
ebus
i
ne
s
si
nc
ur
r
e
dc
os
t
st
ha
tr
e
qui
r
e
dout
l
a
ysofmone
yamount
i
ngt
o$14
,
000.
40. Zac
h’
sac
c
ount
i
ngpr
ofitf
ort
heye
arwas
a
. $–478,
000
.
b.$–56,
000
.
c
. $2,
000
.
d.$22,
000
.
ANSWER:
d.
$22,
000
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
41. Zac
h’
se
c
onomi
cpr
ofitf
ort
heye
arwas
a
. $–478,
000
.
b.$–56,
000
.
c
. $2,
000
.
d.$22,
000
.
ANSWER:
c
.
$2,
000
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
Us
et
hef
ol
l
owi
ngi
nf
or
ma
t
i
ont
oans
we
rque
s
t
i
ons4
2t
hr
ough45
.
Tonyi
sawhe
a
tf
a
r
me
r
,butheal
s
os
pe
ndspar
tofhi
sda
yt
e
ac
hi
nggui
t
a
rl
e
s
s
ons
.Duet
ot
hepopul
ar
i
t
yofhi
sl
oc
alc
ount
r
y
we
s
t
e
r
nband,
Far
me
rTonyhasmor
es
t
ude
nt
sr
e
que
s
t
i
ngl
e
s
s
onst
hanhehast
i
mef
ori
fhei
st
oal
s
omai
nt
ai
nhi
sf
ar
mi
ng
bus
i
ne
s
s
.Far
me
rTonyc
har
ge
s$25anhourf
orhi
sgui
t
a
rl
e
s
s
ons
.Ones
pr
i
ngda
y
,
hes
pe
nds10hour
si
nhi
sfie
l
dspl
ant
i
ng
$130wor
t
hofs
e
e
dsonhi
sf
a
r
m.Hee
xpe
c
t
st
ha
tt
hes
e
e
dshepl
ant
e
dwi
l
lyi
e
l
d$300wor
t
hofwhe
a
t
.
42. Wha
ti
st
het
ot
aloppor
t
uni
t
yc
os
toft
heda
yt
ha
tFar
me
rTonyi
nc
ur
r
e
df
orhi
ss
pr
i
ngda
yi
nt
hefie
l
dpl
ant
i
ng
whe
a
t
?
a
. $130
b.$250
c
. $300
d.$380
ANSWER:
d.
$380
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
43. Tony’
sac
c
ount
antwoul
dmos
tl
i
ke
l
yfigur
et
het
ot
alc
os
tofhi
swhe
a
tpl
ant
i
ngt
oe
qual
a
. $25.
b.$130.
c
. $300.
d.$380.
ANSWER:
b.
$130.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
44. Tony’
sac
c
ount
i
ngpr
ofite
qual
s
a
. $–80.
b.$130.
c
. $170.
d.$260.
ANSWER:
c
.
$170.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
45. Tony’
se
c
onomi
cpr
ofite
qual
s
a
. $–130.
b.$–80.
c
. $130.
d.$170.
ANSWER:
b.
$–80.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
1
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Chapter 13 /The Costs of Production  376
46. Dol
or
e
sus
e
dt
owor
kasahi
ghs
c
hoolt
e
a
c
he
rf
or$40
,
000pe
rye
arbutqui
ti
nor
de
rt
os
t
ar
the
rownc
a
t
e
r
i
ng
bus
i
ne
s
s
.Tobuyt
hene
c
e
s
s
ar
ye
qui
pme
nt
,s
hewi
t
hdr
e
w $20,
000f
r
om he
rs
a
vi
ngs
,
(
whi
c
hpai
d3pe
r
c
e
nti
nt
e
r
e
s
t
)
andbor
r
owe
d$30,
000f
r
om he
runc
l
e
,
whom s
hepa
ys3pe
r
c
e
nti
nt
e
r
e
s
tpe
rye
ar
.Las
tye
ars
hepai
d$25
,
000f
or
i
ngr
e
di
e
nt
sandhadr
e
ve
nueof$60
,
000.
Sheas
ke
dLoui
st
heac
c
ount
antandGr
e
gt
hee
c
onomi
s
tt
oc
al
c
ul
a
t
ehe
r
pr
ofitf
orhe
r
.
a
. Loui
ss
a
yshe
rpr
ofiti
s$34,
100andGr
e
gs
a
yshe
rpr
ofiti
s$6,
500
.
b.Loui
ss
a
yshe
rpr
ofiti
s$34,
100andGr
e
gs
a
yss
hel
os
t$6,
500
.
c
. Loui
ss
a
yshe
rpr
ofiti
s$35,
000andGr
e
gs
a
yss
hel
os
t$5,
000
.
d.Loui
ss
a
yshe
rpr
ofiti
s$33,
500andGr
e
gs
a
yshe
rpr
ofiti
s33,
500
.
ANSWER:
b.
Loui
ss
a
yshe
rpr
ofiti
s$34,
100andGr
e
gs
a
yss
hel
os
t$6,
500
.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
1
47. A pr
oduc
t
i
onf
unc
t
i
oni
sar
e
l
a
t
i
ons
hi
pbe
t
we
e
n
a
.i
nput
sandquant
i
t
yofout
put
.
b.i
nput
sandr
e
ve
nue
.
c
.i
nput
sandc
os
t
s
.
d.i
nput
sandpr
ofit
.
ANSWER:
a
.
i
nput
sandquant
i
t
yofout
put
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
48. Themar
gi
nalpr
oduc
tofl
abori
se
qualt
ot
he
a
.i
nc
r
e
me
nt
alc
os
tas
s
oc
i
a
t
e
dwi
t
haoneuni
ti
nc
r
e
as
ei
nl
abor
.
b.i
nc
r
e
me
nt
alpr
ofitas
s
oc
i
a
t
e
dwi
t
haoneuni
ti
nc
r
e
as
ei
nl
abor
.
c
.i
nc
r
e
as
ei
nl
a
borne
c
e
s
s
ar
yt
oge
ne
r
a
t
eaoneuni
ti
nc
r
e
as
ei
nout
put
.
d.i
nc
r
e
as
ei
nout
putobt
ai
ne
df
r
om aoneuni
ti
nc
r
e
as
ei
nl
abor
.
ANSWER:
d.
i
nc
r
e
as
ei
nout
putobt
ai
ne
df
r
om aoneuni
ti
nc
r
e
as
ei
nl
abor
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
49. Themar
gi
nalpr
oduc
tofl
aborc
anbede
fine
das
a
.c
hangei
npr
ofit
/c
hangei
nl
abor
.
b.c
hangei
nout
put
/c
hangei
nl
abor
.
c
.c
hangei
nl
abor
/c
hangei
nout
put
.
d.c
hangei
nl
abor
/c
hangei
nt
ot
alc
os
t
.
ANSWER:
b.
c
hangei
nout
put
/c
hangei
nl
abor
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
50. Onewoul
de
xpe
c
tt
oobs
e
r
vedi
mi
ni
s
hi
ngmar
gi
nalpr
oduc
tofl
aborwhe
n
a
.c
r
owde
doffic
es
pac
er
e
duc
e
st
hepr
oduc
t
i
vi
t
yofne
w wor
ke
r
s
.
b.wor
ke
r
sar
edi
s
c
our
a
ge
daboutt
hel
ac
kofhe
l
pf
r
om ot
he
rwor
ke
r
s
.
c
. onl
yne
w wor
ke
r
sar
et
r
ai
ne
di
nus
i
ngt
hemos
tpr
oduc
t
i
vec
api
t
al
.
d.uni
onwor
ke
r
sar
et
ol
dt
or
e
duc
et
he
i
rwor
ke
ffor
ti
npr
e
par
a
t
i
onf
orane
wr
oundofc
ol
l
e
c
t
i
vebar
gai
ni
ngt
al
ks
.
ANSWER:
a
.
c
r
owde
doffic
es
pac
er
e
duc
e
st
hepr
oduc
t
i
vi
t
yofne
w wor
ke
r
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
51. Whe
naddi
nganot
he
runi
tofl
aborl
e
adst
oani
nc
r
e
as
ei
nout
putt
ha
ti
ss
mal
l
e
rt
hani
nc
r
e
as
e
si
nout
putt
ha
t
r
e
s
ul
t
e
df
r
om addi
ngpr
e
vi
ousuni
t
sofl
a
bor
,weha
vet
hepr
ope
r
t
yof
a
. di
mi
ni
s
hi
ngl
abor
.
b.di
mi
ni
s
hi
ngout
put
.
c
. di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
d.ne
ga
t
i
vemar
gi
nalpr
oduc
t
.
ANSWER:
c
.
di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
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Chapter 13 /The Costs of Production  377
Thefigur
ebe
l
ow de
pi
c
t
sapr
oduc
t
i
onf
unc
t
i
onf
orafir
mt
ha
tpr
oduc
e
sc
ooki
e
s
.Us
et
hefigur
et
oans
we
rque
s
t
i
ons52and
53.
52. Ast
henumbe
rofwor
ke
r
si
nc
r
e
as
e
s
,
a
.t
ot
alout
puti
nc
r
e
as
e
s
,buta
tade
c
r
e
as
i
ngr
a
t
e
.
b.mar
gi
nalpr
oduc
ti
nc
r
e
as
e
s
,buta
tade
c
r
e
as
i
ngr
a
t
e
.
c
. mar
gi
nalpr
oduc
ti
nc
r
e
as
e
sa
tani
nc
r
e
as
i
ngr
a
t
e
.
d.t
ot
alout
putde
c
r
e
as
e
s
.
ANSWER:
a
.
t
ot
alout
puti
nc
r
e
as
e
s
,buta
tade
c
r
e
as
i
ngr
a
t
e
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
53. Wi
t
hr
e
gar
dt
oc
ooki
epr
oduc
t
i
on,t
hefigur
ei
mpl
i
e
s
a
. di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
tofwor
ke
r
s
.
b.di
mi
ni
s
hi
ngmar
gi
nalc
os
tofc
ooki
epr
oduc
t
i
on.
c
. de
c
r
e
as
i
ngc
os
tofc
ooki
epr
oduc
t
i
on.
d.i
nc
r
e
as
i
ngmar
gi
nalpr
oduc
tofwor
ke
r
s
.
ANSWER:
a
.
di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
tofwor
ke
r
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
54. Whi
c
hoft
hef
ol
l
owi
ngs
t
a
t
e
me
nt
saboutapr
oduc
t
i
onf
unc
t
i
oni
sc
or
r
e
c
tf
orafir
mt
ha
tus
e
sl
abort
opr
oduc
e
out
put
?
a
. Thepr
oduc
t
i
onf
unc
t
i
onde
pi
c
t
st
her
e
l
a
t
i
ons
hi
pbe
t
we
e
nt
hequant
i
t
yofl
aborandt
hequant
i
t
yofout
put
.
b.Thes
l
opeoft
hepr
oduc
t
i
onf
unc
t
i
onme
as
ur
e
smar
gi
nalc
os
t
.
c
. Thequant
i
t
yofout
puti
sme
as
ur
e
dal
ongt
hehor
i
z
ont
alaxi
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
Thepr
oduc
t
i
onf
unc
t
i
onde
pi
c
t
st
her
e
l
a
t
i
ons
hi
pbe
t
we
e
nt
hequant
i
t
yofl
aborandt
hequant
i
t
yof
out
put
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
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Chapter 13 /The Costs of Production  378
Thefigur
ebe
l
ow de
pi
c
t
sat
ot
alc
os
tf
unc
t
i
onf
orafir
mt
ha
tpr
oduc
e
sc
ooki
e
s
.
Us
et
hefigur
et
oans
we
rque
s
t
i
ons55
t
hr
ough58.
55. Whi
c
hoft
hef
ol
l
owi
ngi
st
r
ueoft
hepr
oduc
t
i
onf
unc
t
i
on(
notpi
c
t
ur
e
d)t
ha
tunde
r
l
i
e
st
hi
st
ot
alc
os
tf
unc
t
i
on?
(
i
i
) Tot
alout
puti
nc
r
e
as
e
sast
hequant
i
t
yofi
nput
si
nc
r
e
as
e
s
,buta
tade
c
r
e
as
i
ngr
a
t
e
.
(
i
i
) Mar
gi
nalpr
oduc
ti
sdi
mi
ni
s
hi
ngf
oral
ll
e
ve
l
sofi
nputus
a
ge
.
(
i
i
i
) Thes
l
opeoft
hepr
oduc
t
i
onf
unc
t
i
onde
c
r
e
as
e
sast
hequant
i
t
yofi
nput
si
nc
r
e
as
e
s
.
a
.(
i
)onl
y
b.(
i
i
)and(
i
i
i
)
c
.(
i
)and(
i
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
2
56. Thec
ha
ngi
ngs
l
opeoft
het
ot
alc
os
tc
ur
ver
e
fle
c
t
s
a
. de
c
r
e
as
i
nga
ve
r
a
gevar
i
abl
ec
os
t
.
b.de
c
r
e
as
i
nga
ve
r
a
get
ot
alc
os
t
.
c
. de
c
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
d.i
nc
r
e
as
i
ngfix
e
dc
os
t
.
ANSWER:
c
.
de
c
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
57. Whi
c
hoft
hef
ol
l
owi
ngs
t
a
t
e
me
nt
sbe
s
tc
apt
ur
e
st
hena
t
ur
eoft
heunde
r
l
yi
ngpr
oduc
t
i
onf
unc
t
i
on?
a
. Out
puti
nc
r
e
as
e
sa
tade
c
r
e
as
i
ngr
a
t
ewi
t
haddi
t
i
onaluni
t
sofi
nput
.
b.Out
puti
nc
r
e
as
e
sa
tani
nc
r
e
as
i
ngr
a
t
ewi
t
haddi
t
i
onaluni
t
sofi
nput
.
c
. Out
putde
c
r
e
as
e
sa
tade
c
r
e
as
i
ngr
a
t
ewi
t
haddi
t
i
onaluni
t
sofi
nput
.
d.Out
putde
c
r
e
as
e
sa
tani
nc
r
e
as
i
ngr
a
t
ewi
t
haddi
t
i
onaluni
t
sofi
nput
.
ANSWER:
a
.
Out
puti
nc
r
e
as
e
sa
tade
c
r
e
as
i
ngr
a
t
ewi
t
haddi
t
i
onaluni
t
sofi
nput
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
58. Whi
c
hoft
hes
t
a
t
e
me
nt
sbe
l
ow i
smos
tc
ons
i
s
t
e
ntwi
t
ht
hes
hapeoft
het
ot
alc
os
tc
ur
ve
?
a
. Pr
oduc
i
nganaddi
t
i
onalc
ooki
ei
sal
wa
ysmor
ec
os
t
l
yt
hanpr
oduc
i
ngt
hepr
e
vi
ousc
ooki
e
.
b.Tot
alpr
oduc
t
i
onofc
ooki
e
sde
c
r
e
as
e
swi
t
haddi
t
i
onaluni
t
sofi
nput
.
c
. Pr
oduc
i
ngaddi
t
i
onalc
ooki
e
si
se
qual
l
yc
os
t
l
y
,
r
e
gar
dl
e
s
sofhow manyc
ooki
e
sar
eal
r
e
adybe
i
ngpr
oduc
e
d.
d.Pr
oduc
i
ngaddi
t
i
onalc
ooki
e
sbe
c
ome
si
nc
r
e
as
i
ngl
yc
os
t
l
yonl
ywhe
nt
henumbe
rofc
ooki
e
sal
r
e
adybe
i
ng
pr
oduc
e
di
sl
ar
ge
.
ANSWER:
a
.
Pr
oduc
i
nganaddi
t
i
onalc
ooki
ei
sal
wa
ysmor
ec
os
t
l
yt
hanpr
oduc
i
ngt
hepr
e
vi
ousc
ooki
e
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
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Chapter 13 /The Costs of Production  379
59. Whi
c
hoft
he
s
eas
s
umpt
i
onsi
sof
t
e
nr
e
al
i
s
t
i
cf
orafir
mi
nt
hes
hor
tr
un?
a
. Thefir
mc
anvar
ybot
ht
hes
i
zeofi
t
sf
ac
t
or
yandt
henumbe
rofwor
ke
r
si
te
mpl
oys
.
b.Thefir
mc
anvar
yt
hes
i
zeofi
t
sf
ac
t
or
y
,butnott
henumbe
rofwor
ke
r
si
te
mpl
oys
.
c
. Thefir
mc
anvar
yt
henumbe
rofwor
ke
r
si
te
mpl
oys
,
butnott
hes
i
zeofi
t
sf
ac
t
or
y
.
d.Thefir
mc
anvar
yne
i
t
he
rt
hes
i
zeofi
t
sf
ac
t
or
ynort
henumbe
rofwor
ke
r
si
te
mpl
oys
.
ANSWER:
c
.
Thefir
mc
anvar
yt
henumbe
rofwor
ke
r
si
te
mpl
oys
,
butnott
hes
i
zeofi
t
sf
ac
t
or
y
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
60. As
s
umeac
e
r
t
ai
nfir
mr
e
gar
dst
henumbe
rofwor
ke
r
si
te
mpl
oysasvar
i
abl
e
,
andt
ha
ti
tr
e
gar
dst
hes
i
zeofi
t
sf
ac
t
or
y
asfix
e
d.
Thi
sas
s
umpt
i
oni
sof
t
e
nr
e
al
i
s
t
i
c
a
.i
nt
hes
hor
tr
un,butnoti
nt
hel
ongr
un.
b.i
nt
hel
ongr
un,butnoti
nt
hes
hor
tr
un.
c
. bot
hi
nt
hes
hor
tr
unandi
nt
hel
ongr
un.
d.ne
i
t
he
ri
nt
hes
hor
tr
unnori
nt
hel
ongr
un.
ANSWER:
a
.
i
nt
hes
hor
tr
un,butnoti
nt
hel
ongr
un.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
61. Forafir
m,
t
hepr
oduc
t
i
onf
unc
t
i
onr
e
pr
e
s
e
nt
st
her
e
l
a
t
i
ons
hi
pbe
t
we
e
n
a
.i
mpl
i
c
i
tc
os
t
sande
xpl
i
c
i
tc
os
t
s
.
b.quant
i
t
yofi
nput
sandt
ot
alc
os
t
.
c
. quant
i
t
yofi
nput
sandquant
i
t
yofout
put
.
d.quant
i
t
yofout
putandt
ot
alc
os
t
.
ANSWER:
c
.
quant
i
t
yofi
nput
sandquant
i
t
yofout
put
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
62. Forafir
m,
t
her
e
l
a
t
i
ons
hi
pbe
t
we
e
nt
hequant
i
t
yofi
nput
sandquant
i
t
yofout
puti
sc
al
l
e
dt
he
a
. pr
ofitf
unc
t
i
on.
b.pr
oduc
t
i
onf
unc
t
i
on.
c
.t
ot
al
c
os
tf
unc
t
i
on.
d.quant
i
t
yf
unc
t
i
on.
ANSWER:
b.
pr
oduc
t
i
onf
unc
t
i
on.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
63. Forac
e
r
t
ai
nfir
m,
t
henumbe
rofwor
ke
r
shi
r
e
di
st
heonl
yvar
i
abl
ei
nput
.Whe
nt
hi
sfir
m’
spr
oduc
t
i
onf
unc
t
i
oni
s
i
l
l
us
t
r
a
t
e
donagr
aph,
a
.t
henumbe
rofwor
ke
r
si
sme
as
ur
e
dont
hehor
i
z
ont
alaxi
sandt
hequant
i
t
yofout
puti
sme
as
ur
e
dont
heve
r
t
i
c
al
axi
s
.
b.t
henumbe
rofwor
ke
r
si
sme
as
ur
e
dont
hehor
i
z
ont
alaxi
sandvar
i
abl
ec
os
ti
sme
as
ur
e
dont
heve
r
t
i
c
alaxi
s
.
c
.t
henumbe
rofwor
ke
r
si
sme
as
ur
e
dont
hehor
i
z
ont
alaxi
sandpr
ofiti
sme
as
ur
e
dont
heve
r
t
i
c
alaxi
s
.
d.t
ot
alc
os
ti
sme
as
ur
e
dont
hehor
i
z
ont
alaxi
sandt
henumbe
rofwor
ke
r
si
sme
as
ur
e
dont
heve
r
t
i
c
alaxi
s
.
ANSWER:
a
.
t
henumbe
rofwor
ke
r
si
sme
as
ur
e
dont
hehor
i
z
ont
alaxi
sandt
hequant
i
t
yofout
puti
sme
as
ur
e
dont
he
ve
r
t
i
c
alaxi
s
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
64. Themar
gi
nalpr
oduc
tofani
nputi
nt
hepr
oduc
t
i
onpr
oc
e
s
si
st
hei
nc
r
e
as
ei
n
a
.t
ot
alr
e
ve
nueobt
ai
ne
df
r
om anaddi
t
i
onaluni
toft
ha
ti
nput
.
b.pr
ofitobt
ai
ne
df
r
om anaddi
t
i
onaluni
toft
ha
ti
nput
.
c
.t
ot
alr
e
ve
nueobt
ai
ne
df
r
om anaddi
t
i
onaluni
toft
ha
ti
nput
.
d.quant
i
t
yofout
putobt
ai
ne
df
r
om anaddi
t
i
onaluni
toft
ha
ti
nput
.
ANSWER:
d.
quant
i
t
yofout
putobt
ai
ne
df
r
om anaddi
t
i
onaluni
toft
ha
ti
nput
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
65. Whe
nafir
m’
sonl
yvar
i
abl
ei
nputi
sl
abor
,
t
he
nt
hes
l
opeoft
hepr
oduc
t
i
onf
unc
t
i
onme
as
ur
e
st
he
a
. quant
i
t
yofl
abor
.
b.quant
i
t
yofout
put
.
c
.t
ot
alc
os
t
.
d.mar
gi
nalpr
oduc
tofl
abor
.
ANSWER:
d.
mar
gi
nalpr
oduc
tofl
abor
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
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Chapter 13 /The Costs of Production  380
66. Le
tLr
e
pr
e
s
e
ntt
henumbe
rofwor
ke
r
shi
r
e
dbyafir
m andl
e
tQ r
e
pr
e
s
e
ntt
ha
tfir
m’
squant
i
t
yofout
put
.As
s
ume
t
wopoi
nt
sont
hefir
m’
spr
oduc
t
i
onf
unc
t
i
onar
e(
L=12
,Q=122)and(
L=13,Q =130)
.The
nt
hemar
gi
nalpr
oduc
t
oft
he13t
hwor
ke
ri
s
a
. 8uni
t
sofout
put
.
b.10uni
t
sofout
put
.
c
. 122uni
t
sofout
put
.
d.130uni
t
sofout
put
.
ANSWER:
a
.
8uni
t
sofout
put
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
67. Ona100ac
r
ef
ar
m,
af
ar
me
ri
sabl
et
opr
oduc
e3
,
000bus
he
l
sofwhe
a
twhe
nhehi
r
e
s2wor
ke
r
s
.Hei
sa
bl
et
o
pr
oduc
e4,
400bus
he
l
sofwhe
a
twhe
nhehi
r
e
s3wor
ke
r
s
.Whi
c
hoft
hef
ol
l
owi
ngpos
s
i
bi
l
i
t
i
e
si
sc
ons
i
s
t
e
ntwi
t
ht
he
pr
ope
r
t
yofdi
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
?
a
. Thef
a
r
me
ri
sa
bl
et
opr
oduc
e5,
600bus
he
l
sofwhe
a
twhe
nhehi
r
e
s4wor
ke
r
s
.
b.Thef
a
r
me
ri
sa
bl
et
opr
oduc
e5,
800bus
he
l
sofwhe
a
twhe
nhehi
r
e
s4wor
ke
r
s
.
c
. Thef
a
r
me
ri
sa
bl
et
opr
oduc
e6,
000bus
he
l
sofwhe
a
twhe
nhehi
r
e
s4wor
ke
r
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
Thef
a
r
me
ri
sa
bl
et
opr
oduc
e5,
600bus
he
l
sofwhe
a
twhe
nhehi
r
e
s4wor
ke
r
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
2
68. Suppos
eac
e
r
t
ai
nfir
mi
sabl
et
opr
oduc
e160uni
t
sofout
putpe
rda
ywhe
n15wor
ke
r
sar
ehi
r
e
d.
Thefir
mi
sabl
et
o
pr
oduc
e176uni
t
sofout
putpe
rda
ywhe
n16wor
ke
r
sar
ehi
r
e
d(
hol
di
ngot
he
ri
nput
sfix
e
d)
.
The
nt
hemar
gi
nal
pr
oduc
toft
he16t
hwor
ke
ri
s
a
. 10uni
t
sofout
put
.
b.11uni
t
sofout
put
.
c
. 16uni
t
sofout
put
.
d.176uni
t
sofout
put
.
ANSWER:
c
.
16uni
t
sofout
put
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
69. A t
ot
al
c
os
tc
ur
ves
howst
her
e
l
a
t
i
ons
hi
pbe
t
we
e
nt
he
a
. quant
i
t
yofani
nputus
e
dandt
het
ot
alc
os
tofpr
oduc
t
i
on.
b.quant
i
t
yofout
putpr
oduc
e
dandt
het
ot
alc
os
tofpr
oduc
t
i
on.
c
.t
ot
alc
os
tofpr
oduc
t
i
onandpr
ofit
.
d.t
ot
alc
os
tofpr
oduc
t
i
onandt
ot
alr
e
ve
nue
.
ANSWER:
b.
t
hequant
i
t
yofout
putpr
oduc
e
dandt
het
ot
alc
os
tofpr
oduc
t
i
on.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
2
70. Whi
c
hoft
hef
ol
l
owi
ngc
os
t
sdonotvar
ywi
t
ht
heamountofout
putafir
m pr
oduc
e
s
?
a
.a
ve
r
a
gefix
e
dc
os
t
s
b.fix
e
dc
os
t
sanda
ve
r
a
gefix
e
dc
os
t
s
c
. mar
gi
nalc
os
t
sanda
ve
r
a
gefix
e
dc
os
t
s
d.fix
e
dc
os
t
s
ANSWER:
d.
fix
e
dc
os
t
s
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
71. Ane
xampl
eofafix
e
dc
os
twoul
dbe
(
i
) r
a
w ma
t
e
r
i
al
ss
uppl
i
e
da
tagove
r
nme
ntr
e
gul
a
t
e
dpr
i
c
e
.
(
i
i
) r
e
ntpai
donaf
ac
t
or
y
.
(
i
i
i
) mac
hi
nemai
nt
e
nanc
e
.
a
.(
i
i
)onl
y
b.(
i
)and(
i
i
)
c
.(
i
i
)and(
i
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
(
i
)and(
i
i
)
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  381
72. Fi
x
e
dc
os
t
sc
anbede
fine
dasc
os
t
st
ha
t
a
. var
yi
nve
r
s
e
l
ywi
t
hpr
oduc
t
i
on.
b.var
yi
npr
opor
t
i
onwi
t
hpr
oduc
t
i
on.
c
. ar
ei
nc
ur
r
e
donl
ywhe
npr
oduc
t
i
oni
sl
ar
gee
nough.
d.ar
ei
nc
ur
r
e
de
ve
ni
fnot
hi
ngi
spr
oduc
e
d.
ANSWER:
d.
ar
ei
nc
ur
r
e
de
ve
ni
fnot
hi
ngi
spr
oduc
e
d.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
73. Suppos
eJ
ani
ss
t
ar
t
i
ngupas
mal
ll
e
monades
t
andbus
i
ne
s
s
.
Var
i
abl
ec
os
t
sf
orJ
an’
sl
e
monades
t
andwoul
di
nc
l
ude
t
hec
os
tof
a
. bui
l
di
ngt
hel
e
monades
t
and.
b.hi
r
i
nganar
t
i
s
tt
ode
s
i
gnal
ogof
orhe
rs
i
gn.
c
.l
e
monademi
x.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
l
e
monademi
x.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
74. I
fafir
m pr
oduc
e
snot
hi
ng,whi
c
hoft
hef
ol
l
owi
ngc
os
t
swi
l
lbeze
r
o?
a
.t
ot
alc
os
t
b.fix
e
dc
os
t
c
. oppor
t
uni
t
yc
os
t
d.var
i
abl
ec
os
t
ANSWER:
d.
var
i
abl
ec
os
t
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
75. Oneas
s
umpt
i
ont
ha
tdi
s
t
i
ngui
s
he
ss
hor
t
r
unc
os
tanal
ys
i
sf
r
om l
ongr
unc
os
tanal
ys
i
sf
orapr
ofit
maxi
mi
zi
ngfir
mi
s
t
ha
ti
nt
hes
hor
tr
un,
a
. out
puti
snotvar
i
abl
e
.
b.t
henumbe
rofwor
ke
r
sus
e
dt
opr
oduc
et
hefir
m'
spr
oduc
ti
sfix
e
d.
c
.t
hes
i
zeoft
hef
ac
t
or
yi
sfix
e
d.
d.t
he
r
ear
enofix
e
dc
os
t
s
.
ANSWER:
c
.
t
hes
i
zeoft
hef
ac
t
or
yi
sfix
e
d.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
76. Thec
os
tofpr
oduc
i
ngt
het
ypi
c
aluni
tofout
puti
st
hefir
m’
s
a
.a
ve
r
a
get
ot
alc
os
t
.
b.oppor
t
uni
t
yc
os
t
.
c
. var
i
abl
ec
os
t
.
d.mar
gi
nalc
os
t
.
ANSWER:
a
.
a
ve
r
a
get
ot
alc
os
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
77. Ave
r
a
get
ot
alc
os
ti
se
qualt
o
a
. out
put
/t
ot
alc
os
t
.
b.t
ot
alc
os
t–t
ot
alquant
i
t
yofout
put
.
c
.a
ve
r
a
gevar
i
abl
ec
os
t+t
ot
alfix
e
dc
os
t
.
d.t
ot
alc
os
t
/out
put
.
ANSWER:
d.
t
ot
alc
os
t
/out
put
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
78. Theamountbywhi
c
ht
ot
alc
os
tr
i
s
e
swhe
nt
hefir
m pr
oduc
e
soneaddi
t
i
onaluni
tofout
puti
sc
al
l
e
d
a
.a
ve
r
a
gec
os
t
.
b.mar
gi
nalc
os
t
.
c
. fix
e
dc
os
t
.
d.var
i
abl
ec
os
t
.
ANSWER:
b.
mar
gi
nalc
os
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  382
79. Thec
os
tofpr
oduc
i
nganaddi
t
i
onaluni
tofout
puti
st
hefir
m’
s
a
. mar
gi
nalc
os
t
.
b.pr
oduc
t
i
vi
t
yoffs
e
t
.
c
. var
i
abl
ec
os
t
.
d.a
ve
r
a
gevar
i
abl
ec
os
t
.
ANSWER:
a
.
mar
gi
nalc
os
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
80. Ave
r
a
get
ot
alc
os
te
qual
s
a
.c
hangei
nt
ot
alc
os
t
sdi
vi
de
dbyquant
i
t
ypr
oduc
e
d.
b.c
hangei
nt
ot
alc
os
t
sdi
vi
de
dbyc
hangei
nquant
i
t
ypr
oduc
e
d.
c
.(
fix
e
dc
os
t
s+var
i
abl
ec
os
t
s
)di
vi
de
dbyquant
i
t
ypr
oduc
e
d.
d.(
fix
e
dc
os
t
s+var
i
abl
ec
os
t
s
)di
vi
de
dbyc
hangei
nquant
i
t
ypr
oduc
e
d.
ANSWER:
c
.
(
fix
e
dc
os
t
s+var
i
abl
ec
os
t
s
)di
vi
de
dbyquant
i
t
ypr
oduc
e
d.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
81. Var
i
abl
ec
os
tdi
vi
de
dbyquant
i
t
ypr
oduc
e
di
s
a
.a
ve
r
a
get
ot
alc
os
t
.
b.mar
gi
nalc
os
t
.
c
. pr
ofit
.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Noneoft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
82. Mar
gi
nalc
os
te
qual
s
(
i
) c
hangei
nt
ot
alc
os
tdi
vi
de
dbyc
hangei
nquant
i
t
ypr
oduc
e
d.
(
i
i
) c
hangei
nvar
i
abl
ec
os
tdi
vi
de
dbyc
hangei
nquant
i
t
ypr
oduc
e
d.
(
i
i
i
)t
hea
ve
r
a
gefix
e
dc
os
toft
hec
ur
r
e
ntuni
t
.
a
.(
i
)and(
i
i
)
b.(
i
i
)and(
i
i
i
)
c
.(
i
i
)onl
y
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
(
i
)and(
i
i
)
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
83. Var
i
abl
ec
os
tdi
vi
de
dbyc
hangei
nquant
i
t
ypr
oduc
e
di
s
a
.a
ve
r
a
gevar
i
abl
ec
os
t
.
b.mar
gi
nalc
os
t
.
c
.a
ve
r
a
get
ot
alc
os
t
.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Noneoft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
84. Mar
gi
nalc
os
te
qual
s
a
.t
ot
alc
os
tdi
vi
de
dbyquant
i
t
yofout
putpr
oduc
e
d.
b.t
ot
alout
putdi
vi
de
dbyt
hec
hangei
nt
ot
alc
os
t
.
c
.t
hes
l
opeoft
het
ot
alc
os
tc
ur
ve
.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
t
hes
l
opeoft
het
ot
alc
os
tc
ur
ve
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
85. Ave
r
a
get
ot
alc
os
tt
e
l
l
sust
he
a
.t
ot
alc
os
toft
hefir
s
tuni
tofout
put
,i
ft
ot
alc
os
ti
sdi
vi
de
de
ve
nl
yove
ral
lt
heuni
t
spr
oduc
e
d.
b.c
os
tofat
ypi
c
aluni
tofout
put
,
i
ft
ot
alc
os
ti
sdi
vi
de
de
ve
nl
yove
ral
lt
heuni
t
spr
oduc
e
d.
c
.c
os
toft
hel
as
tuni
tofout
put
,i
ft
ot
alc
os
tdoe
snoti
nc
l
udeafix
e
dc
os
tc
ompone
nt
.
d.var
i
abl
ec
os
tofafir
mt
ha
ti
spr
oduc
i
nga
tl
e
as
toneuni
tofout
put
.
ANSWER:
b.
c
os
tofat
ypi
c
aluni
tofout
put
,
i
ft
ot
alc
os
ti
sdi
vi
de
de
ve
nl
yove
ral
lt
heuni
t
spr
oduc
e
d.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  383
86. Mar
gi
nalc
os
tt
e
l
l
sust
he
a
. val
ueofal
lr
e
s
our
c
e
sus
e
di
napr
oduc
t
i
onpr
oc
e
s
s
.
b.mar
gi
nali
nc
r
e
me
ntt
opr
ofit
abi
l
i
t
ywhe
npr
i
c
ei
sc
ons
t
ant
.
c
. amountbywhi
c
ht
ot
alc
os
tr
i
s
e
swhe
nout
puti
si
nc
r
e
as
e
dbyoneuni
t
.
d.amountbywhi
c
hout
putr
i
s
e
swhe
nl
abori
si
nc
r
e
as
e
dbyoneuni
t
.
ANSWER:
c
.
amountbywhi
c
ht
ot
alc
os
tr
i
s
e
swhe
nout
puti
si
nc
r
e
as
e
dbyoneuni
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
Forques
t
i
ons87t
hr
ough90,as
s
umet
ha
tagi
ve
nfir
me
xpe
r
i
e
nc
e
sde
c
r
e
as
i
ngmar
gi
nalpr
oduc
tofl
aborwi
t
ht
headdi
t
i
on
ofe
ac
hwor
ke
rr
e
gar
dl
e
s
soft
hec
ur
r
e
ntout
putl
e
ve
l
.
87. Ave
r
a
get
ot
alc
os
twi
l
lbe
a
. al
wa
ysr
i
s
i
ng.
b.al
wa
ysf
al
l
i
ng.
c
.c
ons
t
ant
.
d.Us
hape
d.
ANSWER:
d.
Us
hape
d.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
88. Ave
r
a
gefix
e
dc
os
twi
l
lbe
a
. al
wa
ysr
i
s
i
ng.
b.al
wa
ysf
al
l
i
ng.
c
. Us
hape
d.
d.c
ons
t
ant
.
ANSWER:
b.
al
wa
ysf
al
l
i
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
89.
Ave
r
a
gevar
i
abl
ec
os
twi
l
lbe
a
. al
wa
ysr
i
s
i
ng.
b.al
wa
ysf
al
l
i
ng.
c
. Us
hape
d.
d.c
ons
t
ant
.
ANSWER:
a
.
al
wa
ysr
i
s
i
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
90. Mar
gi
nalc
os
twi
l
lbe
a
. al
wa
ysr
i
s
i
ng.
b.al
wa
ysf
al
l
i
ng.
c
. Us
hape
d.
d.c
ons
t
ant
.
ANSWER:
a
.
al
wa
ysr
i
s
i
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  384
Us
et
hefigur
ebe
l
ow t
oans
we
rque
s
t
i
on91
.
91. Whi
c
hoft
hea
bovemar
gi
nalc
os
tc
ur
ve
sr
e
fle
c
t
st
hee
xi
s
t
e
nc
eofdi
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
?
a
.A
b.B
c
.C
d.D
ANSWER:
a
.
A
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
92. I
fmar
gi
nalc
os
ti
sr
i
s
i
ng,
a
.a
ve
r
a
gevar
i
abl
ec
os
tmus
tbef
al
l
i
ng.
b.a
ve
r
a
gefix
e
dc
os
tmus
tber
i
s
i
ng.
c
. mar
gi
nalpr
oduc
tmus
tbef
al
l
i
ng.
d.mar
gi
nalpr
oduc
tmus
tber
i
s
i
ng.
ANSWER:
c
.
mar
gi
nalpr
oduc
tmus
tbef
al
l
i
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
93. Di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
ts
ugge
s
t
st
ha
tt
hemar
gi
nal
a
.c
os
tofane
xt
r
awor
ke
ri
sunc
hange
d.
b.c
os
tofane
xt
r
awor
ke
ri
sl
e
s
st
hant
hepr
e
vi
ouswor
ke
r
’
smar
gi
nalc
os
t
.
c
. pr
oduc
tofane
xt
r
awor
ke
ri
sl
e
s
st
hant
hepr
e
vi
ouswor
ke
r
’
smar
gi
nalpr
oduc
t
.
d.pr
oduc
tofane
xt
r
awor
ke
ri
sgr
e
a
t
e
rt
hant
hepr
e
vi
ouswor
ke
r
’
smar
gi
nalpr
oduc
t
.
ANSWER:
c
.
pr
oduc
tofane
xt
r
awor
ke
ri
sl
e
s
st
hant
hepr
e
vi
ouswor
ke
r
’
smar
gi
nalpr
oduc
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
94. Di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
ts
ugge
s
t
st
ha
t
a
. addi
t
i
onaluni
t
sofout
putbe
c
omel
e
s
sc
os
t
l
yasmor
eout
puti
spr
oduc
e
d.
b.mar
gi
nalc
os
ti
supwar
ds
l
opi
ng.
c
.t
hefir
mi
sa
tf
ul
lc
apac
i
t
y
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
mar
gi
nalc
os
ti
supwar
ds
l
opi
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
95. Thea
ve
r
a
gefix
e
dc
os
tc
ur
ve
a
. al
wa
ysde
c
l
i
ne
swi
t
hi
nc
r
e
as
e
dl
e
ve
l
sofout
put
.
b.al
wa
ysr
i
s
e
swi
t
hi
nc
r
e
as
e
dl
e
ve
l
sofout
put
.
c
. de
c
l
i
ne
sasl
ongasi
ti
sa
bovemar
gi
nalc
os
t
.
d.de
c
l
i
ne
sasl
ongasi
ti
sbe
l
ow mar
gi
nalc
os
t
.
ANSWER:
a
.
al
wa
ysde
c
l
i
ne
swi
t
hi
nc
r
e
as
e
dl
e
ve
l
sofout
put
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  385
96. Ave
r
a
get
ot
alc
os
ti
sve
r
yhi
ghwhe
nas
mal
lamountofout
puti
spr
oduc
e
dbe
c
aus
e
a
.a
ve
r
a
gevar
i
abl
ec
os
ti
shi
gh.
b.a
ve
r
a
gefix
e
dc
os
ti
shi
gh.
c
. mar
gi
nalc
os
ti
shi
gh.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
a
ve
r
a
gefix
e
dc
os
ti
shi
gh.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
97. Tot
alc
os
tne
c
e
s
s
ar
i
l
yr
i
s
e
sduet
o
(
i
) r
i
s
i
ngmar
gi
nalc
os
t
.
(
i
i
) f
al
l
i
ngmar
gi
nalc
os
t
.
(
i
i
i
)i
nc
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
a
.(
i
)onl
y
b.(
i
)and(
i
i
)
c
.(
i
i
)onl
y
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Noneoft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
98. Thee
ffic
i
e
nts
c
al
eoft
hefir
mi
st
hequant
i
t
yofout
putt
ha
t
a
. maxi
mi
ze
smar
gi
nalpr
oduc
t
.
b.maxi
mi
ze
spr
ofit
.
c
. mi
ni
mi
ze
sa
ve
r
a
get
ot
alc
os
t
.
d.mi
ni
mi
ze
sa
ve
r
a
gevar
i
abl
ec
os
t
.
ANSWER:
c
.
mi
ni
mi
ze
sa
ve
r
a
get
ot
alc
os
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
99. Whe
nmar
gi
nalc
os
ti
sl
e
s
st
hana
ve
r
a
get
ot
alc
os
t
,
a
. mar
gi
nalc
os
tmus
tbef
al
l
i
ng.
b.a
ve
r
a
gevar
i
abl
ec
os
tmus
tbef
al
l
i
ng.
c
.a
ve
r
a
get
ot
alc
os
ti
sf
al
l
i
ng.
d.a
ve
r
a
get
ot
alc
os
ti
sr
i
s
i
ng.
ANSWER:
c
.
a
ve
r
a
get
ot
alc
os
ti
sf
al
l
i
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
100. Whe
nmar
gi
nalc
os
te
x
c
e
e
dsa
ve
r
a
get
ot
alc
os
t
,
a
.a
ve
r
a
gefix
e
dc
os
tmus
tber
i
s
i
ng.
b.a
ve
r
a
get
ot
alc
os
tmus
tber
i
s
i
ng.
c
.a
ve
r
a
get
ot
alc
os
tmus
tbef
al
l
i
ng.
d.mar
gi
nalc
os
tmus
tbef
al
l
i
ng.
ANSWER:
b.
a
ve
r
a
get
ot
alc
os
tmus
tber
i
s
i
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
101. Ave
r
a
get
ot
alc
os
ti
si
nc
r
e
as
i
ngwhe
ne
ve
r
a
.t
ot
alc
os
ti
si
nc
r
e
as
i
ng.
b.mar
gi
nalc
os
ti
si
nc
r
e
as
i
ng.
c
. mar
gi
nalc
os
ti
sl
e
s
st
hana
ve
r
a
get
ot
alc
os
t
.
d.mar
gi
nalc
os
ti
sgr
e
a
t
e
rt
hana
ve
r
a
get
ot
alc
os
t
.
ANSWER:
d.
mar
gi
nalc
os
ti
sgr
e
a
t
e
rt
hana
ve
r
a
get
ot
alc
os
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
102. J
ohnnyi
sas
ophomor
ei
nc
ol
l
e
geandhasa1
.
5c
umul
a
t
i
vegr
adepoi
nta
ve
r
a
ge(
GP
A)
.
J
ohnny’
sc
umul
a
t
i
veGP
A wi
l
l
f
al
le
ve
nf
ur
t
he
rne
xts
e
me
s
t
e
ri
fhepe
r
f
or
mswor
s
et
han
(
i
) hi
sc
umul
a
t
i
veGP
A.
(
i
i
) hee
ve
rpe
r
f
or
me
dbe
f
or
e
.
(
i
i
i
) hedi
dl
as
ts
e
me
s
t
e
r
.
a
.(
i
)and(
i
i
)
b.(
i
)and(
i
i
i
)
c
.(
i
i
)and(
i
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
(
i
)and(
i
i
)
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  386
103. J
ohnnyi
sas
ophomor
ei
nc
ol
l
e
geandhasa1
.
5c
umul
a
t
i
vegr
adepoi
nta
ve
r
a
ge(
GP
A)
.
J
ohnny’
sc
umul
a
t
i
veGP
A wi
l
l
bebe
t
t
e
rne
xts
e
me
s
t
e
ri
fhe
(
i
) pe
r
f
or
msbe
t
t
e
rt
hanhedi
dl
as
ts
e
me
s
t
e
r
.
(
i
i
) pe
r
f
or
msbe
t
t
e
rt
hanhi
sc
umul
a
t
i
veGP
A.
(
i
i
i
) gi
ve
sana
ve
r
a
gepe
r
f
or
manc
e
.
a
.(
i
i
)onl
y
b.(
i
i
i
)onl
y
c
.(
i
)and(
i
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
(
i
i
)onl
y
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
104. Mar
gi
nalc
os
ti
se
qualt
oa
ve
r
a
get
ot
alc
os
twhe
n
a
.a
ve
r
a
gevar
i
abl
ec
os
ti
sf
al
l
i
ng.
b.a
ve
r
a
gefix
e
dc
os
ti
sr
i
s
i
ng.
c
. mar
gi
nalc
os
ti
sa
ti
t
smi
ni
mum.
d.a
ve
r
a
get
ot
alc
os
ti
sa
ti
t
smi
ni
mum.
ANSWER:
d.
a
ve
r
a
get
ot
alc
os
ti
sa
ti
t
smi
ni
mum.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
105. Themar
gi
nalc
os
tc
ur
vec
r
os
s
e
st
hea
ve
r
a
get
ot
alc
os
tc
ur
vea
t
a
.t
hee
ffic
i
e
nts
c
al
e
.
b.t
hemi
ni
mum poi
ntont
hea
ve
r
a
get
ot
alc
os
tc
ur
ve
.
c
. apoi
ntwhe
r
et
hemar
gi
nalc
os
tc
ur
vei
sr
i
s
i
ng.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
106. I
fmar
gi
nalc
os
ti
sbe
l
ow a
ve
r
a
get
ot
alc
os
t
,t
he
na
ve
r
a
get
ot
alc
os
t
a
.i
sc
ons
t
ant
.
b.i
sf
al
l
i
ng.
c
.i
sr
i
s
i
ng.
d.ma
yr
i
s
eorf
al
lde
pe
ndi
ngont
hes
i
zeoffix
e
dc
os
t
s
.
ANSWER:
b.
i
sf
al
l
i
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
107. Atal
ll
e
ve
l
sofpr
oduc
t
i
onbe
yondt
hepoi
ntwhe
r
et
hemar
gi
nalc
os
tc
ur
vec
r
os
s
e
st
hea
ve
r
a
gevar
i
abl
ec
os
tc
ur
ve
,
a
ve
r
a
gevar
i
abl
ec
os
t
a
.r
i
s
e
s
.
b.r
e
mai
nsunaffe
c
t
e
d.
c
.f
al
l
s
.
d.Al
loft
heabovear
epos
s
i
bl
e
,i
tde
pe
ndsont
hes
hapeoft
hemar
gi
nalc
os
tc
ur
ve
.
ANSWER:
a
.
r
i
s
e
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  387
Us
et
hefigur
ebe
l
ow t
oans
we
rque
s
t
i
on108
.
108. Whi
c
hoft
hef
ol
l
owi
ngc
anbei
nf
e
r
r
e
df
r
om t
hefigur
eabove
?
(
i
) Mar
gi
nalc
os
ti
si
nc
r
e
as
i
nga
tal
ll
e
ve
l
sofout
put
.
(
i
i
) Mar
gi
nalpr
oduc
ti
si
nc
r
e
as
i
nga
tl
ow l
e
ve
l
sofout
put
.
(
i
i
i
) Mar
gi
nalpr
oduc
ti
sde
c
r
e
as
i
nga
thi
ghl
e
ve
l
sofout
put
.
a
.(
i
)and(
i
i
)
b.(
i
i
)and(
i
i
i
)
c
.(
i
)and(
i
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
(
i
i
)and(
i
i
i
)
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  388
Thec
ur
ve
sbe
l
ow r
e
fle
c
ti
nf
or
ma
t
i
ona
boutt
hec
os
ts
t
r
uc
t
ur
eofafir
m.
Us
et
hefigur
et
oans
we
rque
s
t
i
ons109t
hr
ough115
.
109. Whi
c
hoft
hec
ur
ve
si
smos
tl
i
ke
l
yt
or
e
pr
e
s
e
nta
ve
r
a
get
ot
alc
os
t
?
a
.A
b.B
c
.C
d.D
ANSWER:
b.
B
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
110. Whi
c
hoft
hec
ur
ve
si
smos
tl
i
ke
l
yt
or
e
pr
e
s
e
nta
ve
r
a
gefix
e
dc
os
t
?
a
.A
b.B
c
.C
d.D
ANSWER:
d.
D
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
111. Whi
c
hoft
hec
ur
ve
si
smos
tl
i
ke
l
yt
or
e
pr
e
s
e
nta
ve
r
a
gevar
i
abl
ec
os
t
?
a
.A
b.B
c
.C
d.D
ANSWER:
c
.
C
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
112. Whi
c
hoft
hec
ur
ve
si
smos
tl
i
ke
l
yt
or
e
pr
e
s
e
ntmar
gi
nalc
os
t
?
a
.A
b.B
c
.C
d.D
ANSWER:
a
.
A
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  389
113. Thi
spar
t
i
c
ul
arfir
mi
sne
c
e
s
s
ar
i
l
ye
xpe
r
i
e
nc
i
ngi
nc
r
e
as
i
ngmar
gi
nalpr
oduc
twhe
nc
ur
ve
a
. Ai
sf
al
l
i
ng.
b.Bi
sf
al
l
i
ng.
c
. Ci
sf
al
l
i
ng.
d.Di
sf
al
l
i
ng.
ANSWER:
a
.
Ai
sf
al
l
i
ng.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
114. Thi
spar
t
i
c
ul
arfir
mi
sne
c
e
s
s
ar
i
l
ye
xpe
r
i
e
nc
i
ngdi
mi
ni
s
hi
ngmar
gi
nalpr
oduc
twhe
nc
ur
ve
(
i
) Ai
sr
i
s
i
ng.
(
i
i
) Bi
sr
i
s
i
ng.
(
i
i
i
) Ci
sr
i
s
i
ng.
a
.(
i
)onl
y
b.(
i
i
i
)onl
y
c
.(
i
)and(
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
115. Cur
veAi
sUs
hape
dbe
c
aus
eof
a
. di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
b.i
nc
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
c
.t
hef
ac
tt
ha
ti
nc
r
e
as
i
ngmar
gi
nalpr
oduc
tf
ol
l
owsde
c
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
d.t
hef
ac
tt
ha
tde
c
r
e
as
i
ngmar
gi
nalpr
oduc
tf
ol
l
owsi
nc
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
ANSWER:
d.
t
hef
ac
tt
ha
tde
c
r
e
as
i
ngmar
gi
nalpr
oduc
tf
ol
l
owsi
nc
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
116. Tot
alc
os
tc
anbedi
vi
de
di
nt
ot
wot
ype
s
.Thos
et
wot
ype
sar
e
a
. fix
e
dc
os
t
sandvar
i
abl
ec
os
t
s
.
b.fix
e
dc
os
t
sandmar
gi
nalc
os
t
s
.
c
. var
i
abl
ec
os
t
sandmar
gi
nalc
os
t
s
.
d.a
ve
r
a
gec
os
t
sandmar
gi
nalc
os
t
s
.
ANSWER:
a
.
fix
e
dc
os
t
sandvar
i
abl
ec
os
t
s
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
117. Somec
os
t
sdonotvar
ywi
t
ht
hequant
i
t
yofout
putpr
oduc
e
d.Thos
ec
os
t
sar
ec
al
l
e
d
a
. mar
gi
nalc
os
t
s
.
b.a
ve
r
a
gec
os
t
s
.
c
. fix
e
dc
os
t
s
.
d.i
nc
ur
r
e
dc
os
t
s
.
ANSWER:
c
.
fix
e
dc
os
t
s
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
118. Forac
ons
t
r
uc
t
i
onc
ompa
nyt
ha
tbui
l
dshous
e
s
,
whi
c
hoft
hef
ol
l
owi
ngc
os
t
swoul
dbeafix
e
dc
os
t
?
a
.t
he$50
,
000pe
rye
ars
al
ar
ypai
dt
oac
ons
t
r
uc
t
i
onf
or
e
man
b.t
he$30
,
000pe
rye
ars
al
ar
ypai
dt
ot
hec
ompany’
sbookke
e
pe
r
c
.t
he$10
,
000pe
rye
arpr
e
mi
um pai
dt
oani
ns
ur
anc
ec
ompany
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
119. Foral
ar
gefir
mt
ha
tpr
oduc
e
sands
e
l
l
saut
omobi
l
e
s
,
whi
c
hoft
hef
ol
l
owi
ngc
os
t
swoul
dbeavar
i
abl
ec
os
t
?
a
.t
he$20mi
l
l
i
onpa
yme
ntt
ha
tt
hefir
m pa
yse
ac
hye
arf
orac
c
ount
i
ngs
e
r
vi
c
e
s
b.t
hec
os
toft
hes
t
e
e
lt
ha
ti
sus
e
di
npr
oduc
i
nga
ut
omobi
l
e
s
c
.t
her
e
ntt
ha
tt
hefir
m pa
ysf
oroffic
es
pac
ei
nas
ubur
bofSt
.Loui
s
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
t
hec
os
toft
hes
t
e
e
lt
ha
ti
sus
e
di
npr
oduc
i
ngaut
omobi
l
e
s
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  390
120. Whi
c
hoft
hef
ol
l
owi
nge
xpr
e
s
s
i
onsi
sc
or
r
e
c
t
?
a
. mar
gi
nalc
os
t=(
c
hangei
nquant
i
t
yofout
put
)
/(
c
hangei
nt
ot
alc
os
t
)
.
b.a
ve
r
a
get
ot
alc
os
t=t
ot
alc
os
t
/quant
i
t
yofout
put
.
c
.t
ot
alc
os
t=var
i
abl
ec
os
t+mar
gi
nalc
os
t
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
a
ve
r
a
get
ot
alc
os
t=t
ot
alc
os
t
/quant
i
t
yofout
put
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
121. Ave
r
a
get
ot
alc
os
t(
ATC)i
sc
al
c
ul
a
t
e
dasf
ol
l
ows
:
a
. ATC=(
c
hangei
nt
ot
alc
os
t
)
/(
c
hangei
nquant
i
t
yofout
put
)
.
b.ATC=(
c
hangei
nt
ot
alc
os
t
)
/(
c
hangei
nquant
i
t
yofi
nput
)
.
c
. ATC=t
ot
alc
os
t
/quant
i
t
yofout
put
.
d.ATC=t
ot
alc
os
t
/quant
i
t
yofi
nput
.
ANSWER:
c
.
ATC=t
ot
alc
os
t
/quant
i
t
yofout
put
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
122. I
mpl
i
c
i
tc
os
t
s
a
. donotr
e
qui
r
eanout
l
a
yofmone
ybyt
hefir
m.
b.donote
nt
e
ri
nt
ot
hee
c
onomi
s
t
’
sme
as
ur
e
me
ntofafir
m’
spr
ofit
.
c
. ar
eal
s
oknownasvar
i
abl
ec
os
t
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
donotr
e
qui
r
eanout
l
a
yofmone
ybyt
hefir
m.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
123. Whi
c
hoft
hef
ol
l
owi
ngme
as
ur
e
sofc
os
ti
sbe
s
tde
s
c
r
i
be
das“
t
hei
nc
r
e
as
ei
nt
ot
alc
os
tt
ha
tar
i
s
e
sf
r
om ane
xt
r
auni
t
ofpr
oduc
t
i
on?
”
a
. var
i
abl
ec
os
t
b.a
ve
r
a
gevar
i
abl
ec
os
t
c
.a
ve
r
a
get
ot
alc
os
t
d.mar
gi
nalc
os
t
ANSWER:
d.
mar
gi
nalc
os
t
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
124. Whi
c
hoft
hef
ol
l
owi
ngme
as
ur
e
sofc
os
ti
sbe
s
tde
s
c
r
i
be
das“
t
hec
os
tofat
ypi
c
aluni
tofout
puti
ft
ot
alc
os
ti
s
di
vi
de
de
ve
nl
yove
ral
lt
heuni
t
spr
oduc
e
d?
”
a
.a
ve
r
a
gefix
e
dc
os
t
b.a
ve
r
a
gevar
i
abl
ec
os
t
c
.a
ve
r
a
get
ot
alc
os
t
d.mar
gi
nalc
os
t
ANSWER:
c
.
a
ve
r
a
get
ot
alc
os
t
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
125. Mar
gi
nalc
os
ti
nc
r
e
as
e
sast
hequant
i
t
yofout
puti
nc
r
e
as
e
s
.Thi
sr
e
fle
c
t
st
hepr
ope
r
t
yof
a
.i
nc
r
e
as
i
ngt
ot
alc
os
t
.
b.di
mi
ni
s
hi
ngt
ot
alc
os
t
.
c
.i
nc
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
d.di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
ANSWER:
d.
di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
126. I
nt
hes
hor
tr
un,afir
mi
nc
ur
sfix
e
dc
os
t
s
a
. onl
yi
fi
ti
nc
ur
svar
i
abl
ec
os
t
s
.
b.onl
yi
fi
tpr
oduc
e
snoout
put
.
c
. onl
yi
fi
tpr
oduc
e
sapos
i
t
i
vequant
i
t
yofout
put
.
d.i
fi
tpr
oduc
e
snoout
putori
fi
tpr
oduc
e
sapos
i
t
i
vequant
i
t
yofout
put
.
ANSWER:
d.
i
fi
tpr
oduc
e
snoout
putori
fi
tpr
oduc
e
sapos
i
t
i
vequant
i
t
yofout
put
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  391
Ref
ert
ot
hef
ol
l
owi
ngi
nf
or
ma
t
i
ont
oans
werQues
t
i
ons127t
hr
ough131.
Ac
e
r
t
ai
nfir
m pr
oduc
e
sands
e
l
l
ss
t
apl
e
r
s
.Las
tye
ar
,i
tpr
oduc
e
d5
,
000s
t
apl
e
r
sands
ol
de
ac
hs
t
apl
e
rf
or$8
.I
npr
oduc
i
ng
t
he5
,
000s
t
apl
e
r
s
,i
ti
nc
ur
r
e
dvar
i
abl
ec
os
t
sof$30
,
000andat
ot
alc
os
tof$45
,
000.
127. Thefir
m’
sfix
e
dc
os
t
samount
e
dt
o
a
. $15,
000
.
b.$30,
000
.
c
. $40,
000
.
d.$50,
000
.
ANSWER:
a
.
$15,
000
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
128. I
npr
oduc
i
ngt
he5
,
000s
t
apl
e
r
s
,t
hefir
m’
sa
ve
r
a
gefix
e
dc
os
twas
a
. $3.
b.$4.
c
. $5.
d.$7.
ANSWER:
a
.
$3.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
129. I
npr
oduc
i
ngt
he5
,
000s
t
apl
e
r
s
,t
hefir
m’
sa
ve
r
a
gevar
i
abl
ec
os
twas
a
. $2.
b.$4.
c
. $6.
d.$8.
ANSWER:
c
.
$6.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
130. I
npr
oduc
i
ngt
he5
,
000s
t
apl
e
r
s
,t
hefir
m’
sa
ve
r
a
get
ot
alc
os
twas
a
. $6.
b.$7.
c
. $8.
d.$9.
ANSWER:
d.
$9.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
131. Thefir
m’
se
c
onomi
cpr
ofitf
ort
heye
arwas
a
. $–35,
000
.
b.$–5,
000
c
. $10,
000
.
d.$40,
000
.
ANSWER:
b.
$–5,
000
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
Ref
ert
ot
hefigur
esbe
l
ow t
oans
werQues
t
i
ons132t
hr
ough134
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Chapter 13 /The Costs of Production  392
Fi
gur
e1
Fi
gur
e2
Fi
gur
e3
132. Whi
c
hoft
hefigur
e
sr
e
pr
e
s
e
nt
st
het
ot
alc
os
tc
ur
vef
orafir
m?
a
. Fi
gur
e1
b.Fi
gur
e2
c
. Fi
gur
e3
d.Fi
gur
e4
ANSWER:
b.
Fi
gur
e2
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
133. Whi
c
hoft
hefigur
e
sr
e
pr
e
s
e
nt
st
hemar
gi
nalc
os
tc
ur
vef
orafir
m?
a
. Fi
gur
e1
b.Fi
gur
e2
c
. Fi
gur
e3
d.Fi
gur
e4
ANSWER:
a
.
Fi
gur
e1
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
134. Whi
c
hoft
hefigur
e
sr
e
pr
e
s
e
nt
st
hepr
oduc
t
i
onf
unc
t
i
onf
orafir
m?
a
. Fi
gur
e1
b.Fi
gur
e2
c
. Fi
gur
e3
d.Fi
gur
e4
ANSWER:
DTYPE:
M DI
FFI
CULTY:
1SECTI
ON:
13.
3
135. Whi
c
hoft
hef
ol
l
owi
ngs
t
a
t
e
me
nt
saboutc
os
t
si
sc
or
r
e
c
t
?
a
. Whe
nmar
gi
nalc
os
ti
sl
e
s
st
hana
ve
r
a
get
ot
alc
os
t
,
a
ve
r
a
get
ot
alc
os
ti
sr
i
s
i
ng.
b.Thet
ot
alc
os
tc
ur
vei
sUs
hape
d.
c
. Ast
hequant
i
t
yofout
puti
nc
r
e
as
e
s
,mar
gi
nalc
os
te
ve
nt
ual
l
yr
i
s
e
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
Ast
hequant
i
t
yofout
puti
nc
r
e
as
e
s
,mar
gi
nalc
os
te
ve
nt
ual
l
yr
i
s
e
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
136. Whe
ne
ve
rmar
gi
nalc
os
ti
sgr
e
a
t
e
rt
hana
ve
r
a
get
ot
alc
os
t
,
a
. mar
gi
nalc
os
ti
sr
i
s
i
ng.
b.mar
gi
nalc
os
ti
sf
al
l
i
ng.
c
.a
ve
r
a
get
ot
alc
os
ti
sr
i
s
i
ng.
d.a
ve
r
a
get
ot
alc
os
ti
sf
al
l
i
ng.
ANSWER:
c
.
a
ve
r
a
get
ot
alc
os
ti
sr
i
s
i
ng.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
137. Thefir
m’
se
ffic
i
e
nts
c
al
ei
st
hequant
i
t
yofout
putt
ha
tmi
ni
mi
ze
s
a
.a
ve
r
a
get
ot
alc
os
t
.
b.a
ve
r
a
gefix
e
dc
os
t
.
c
.a
ve
r
a
gevar
i
abl
ec
os
t
.
d.mar
gi
nalc
os
t
.
ANSWER:
a
.
a
ve
r
a
get
ot
alc
os
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
3
Downloaded by Madina Walizada (madina.walizada1382@gmail.com)
Fi
gur
e4
lOMoARcPSD|10876599
Chapter 13 /The Costs of Production  393
Us
et
hef
ol
l
owi
ngi
nf
or
ma
t
i
ont
oans
we
rque
s
t
i
ons1
38t
hr
ough144
.
Me
as
ur
e
sofCos
tf
orABCI
nc
.Wi
dge
tFac
t
or
y
Quant
i
t
y
Var
i
abl
e
ofWi
dge
t
s
Cos
t
s
0
1
$1
2
$3
3
$6
4
$10
5
6
$21
Tot
al
Cos
t
s
Fi
x
e
d
Cos
t
s
$10
$13
$16
$25
$10
138. Thea
ve
r
a
gefix
e
dc
os
tofpr
oduc
i
ngfivewi
dge
t
si
s
a
. $1.
00
.
b.$2.
00
.
c
. $3.
00
.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
$2.
00
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
139. Thea
ve
r
a
gevar
i
abl
ec
os
tofpr
oduc
i
ngf
ourwi
dge
t
si
s
a
. $2.
00
b.$2.
50
c
. $3.
33
d.$5.
00
ANSWER:
b.
$2.
50
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
140. Thea
ve
r
a
get
ot
alc
os
tofpr
oduc
i
ngonewi
dge
ti
s
a
. $1.
00
.
b.$10.
00
.
c
. $11.
00
.
d.$22.
00
.
ANSWER:
c
.
$11.
00
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
141. Themar
gi
nalc
os
tofpr
oduc
i
ngt
hes
i
xt
hwi
dge
ti
s
a
. $1.
00
.
b.$3.
50
.
c
. $5.
00
.
d.$6.
00
.
ANSWER:
d.
$6.
00
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
142. Wha
ti
st
hevar
i
abl
ec
os
tofpr
oduc
i
ngze
r
owi
dge
t
s
?
a
. $0
b.$1.
00
c
. $10.
00
d.$10.
00
ANSWER:
a
.
$0
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
143. Wha
ti
st
hemar
gi
nalc
os
tofpr
oduc
i
ngt
hefir
s
twi
dge
t
?
a
. $1.
00
b.$10.
00
c
. $11.
00
d.I
tc
an'
tbede
t
e
r
mi
ne
df
r
om t
hei
nf
or
ma
t
i
ongi
ve
n.
ANSWER:
a
.
$1.
00
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  394
144. Wha
ti
st
hevar
i
abl
ec
os
tofpr
oduc
i
ngfivewi
dge
t
s
?
a
. $13.
00
b.$14.
00
c
. $15.
00
d.I
tc
an'
tbede
t
e
r
mi
ne
df
r
om t
hei
nf
or
ma
t
i
ongi
ve
n.
ANSWER:
c
.
$15.
00
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
Us
et
hef
ol
l
owi
ngi
nf
or
ma
t
i
ont
oans
we
rque
s
t
i
ons1
45t
hr
ough149
.
Adr
i
an'
sPr
e
mi
um Boxi
ngSe
r
vi
c
es
ubc
ont
r
ac
t
swi
t
hac
hoc
ol
a
t
emanuf
ac
t
ur
e
rt
oboxpr
e
mi
um c
hoc
ol
a
t
e
sf
ort
he
i
rmai
l
or
de
rc
a
t
al
oguebus
i
ne
s
s
.Sher
e
nt
sas
mal
lr
oom f
or$150awe
e
ki
nt
hedownt
ownbus
i
ne
s
sdi
s
t
r
i
c
tt
ha
ts
e
r
ve
sashe
r
f
ac
t
or
y
.
Shec
anhi
r
ewor
ke
r
sf
or$275awe
e
k.
Choc
ol
a
t
e
s
Numbe
rof
Pr
oduc
e
dpe
r
Mar
gi
nalPr
oduc
t
Tot
alCos
tof
Wor
ke
r
s
We
e
k
ofLabor
Cos
tofFac
t
or
y
Cos
tofWor
ke
r
s
I
nput
s
0
0
1
330
150
275
425
2
630
3
150
825
975
4
890
5
950
60
1
,
375
6
10
1
,
800
145. Wha
ti
st
hemar
gi
nalpr
oduc
toft
hes
e
c
ondwor
ke
r
?
a
. 110
b.200
c
. 260
d.300
ANSWER:
d.
300
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
146. Wha
ti
st
het
ot
alc
os
tas
s
oc
i
a
t
e
dwi
t
hmaki
ng890box
e
sofpr
e
mi
um c
hoc
ol
a
t
e
spe
rwe
e
k?
a
. 1,
250
b.1,
325
c
. 1,
400
d.1,
575
ANSWER:
a
.
1,
250
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
147. Dur
i
ngt
hewe
e
kofJ
ul
y4t
h,
Adr
i
andoe
s
n'
tboxanyc
hoc
ol
a
t
e
s
.Wha
tar
ehe
rc
os
t
sdur
i
ngt
hewe
e
k?
a
.0
b.150
c
. 275
d.425
ANSWER:
b.
150
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
148. Onewe
e
k,Adr
i
ane
ar
nsapr
ofitof$125.
I
fhe
rr
e
ve
nuef
ort
hewe
e
ki
s$1100,
how manybox
e
sofc
hoc
ol
a
t
edi
ds
he
pr
oduc
e
?
a
. 140
b.330
c
. 780
d.950
ANSWER:
c
.
780
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  395
149. Adr
i
anhasr
e
c
e
i
ve
danor
de
rf
or3000box
e
sofc
hoc
ol
a
t
e
sf
orne
xtwe
e
k.
I
fs
hee
xpe
c
t
st
ha
tt
het
r
e
ndi
nt
hemar
gi
nal
pr
oduc
tofl
aborwi
l
lc
ont
i
nuei
nt
hes
amedi
r
e
c
t
i
on,i
ti
smos
tl
i
ke
l
yt
ha
the
rbe
s
tde
c
i
s
i
onwi
l
lbet
o
a
. notc
ommi
tt
ome
e
t
i
ngt
heor
de
runt
i
ls
hec
anmovet
oal
ar
ge
rr
oom andhi
r
emor
ewor
ke
r
st
oboxt
he
c
hoc
ol
a
t
e
s
.
b.c
l
os
ehe
rbus
i
ne
s
sunt
i
ls
hei
sabl
et
ohi
r
emor
epr
oduc
t
i
vewor
ke
r
s
.
c
. hi
r
ea
bout12ne
w wor
ke
r
sandhopes
hec
ans
a
t
i
s
f
yt
heor
de
r
.
d.c
ommi
tt
ome
e
t
i
ngt
heor
de
randt
he
nt
aket
hr
e
ewe
e
kst
oc
ompl
e
t
et
hej
ob.
ANSWER:
a
.
notc
ommi
tt
ome
e
t
i
ngt
heor
de
runt
i
ls
hec
anmovet
oal
ar
ge
rr
oom andhi
r
emor
ewor
ke
r
st
oboxt
he
c
hoc
ol
a
t
e
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
Us
et
hef
ol
l
owi
ngi
nf
or
ma
t
i
ont
oans
we
rque
s
t
i
ons1
50t
hr
ough154
.
Te
ac
he
r
’
sHe
l
pe
ri
sas
mal
lc
ompa
nyt
ha
thasas
ubc
ont
r
ac
tt
opr
oduc
ei
ns
t
r
uc
t
i
onalma
t
e
r
i
al
sf
ordi
s
a
bl
e
dc
hi
l
dr
e
ni
n
publ
i
cs
c
hooldi
s
t
r
i
c
t
s
.
Theowne
rr
e
nt
ss
e
ve
r
als
mal
lr
oomsi
nanoffic
ebui
l
di
ngi
nt
hes
ubur
bsf
or$6
00amont
handhas
l
e
as
e
dc
omput
e
re
qui
pme
ntt
ha
tc
os
t
s$480amont
h.
Out
put
(
I
ns
t
r
uc
t
i
onal
Modul
e
spe
r
Mont
h)
0
1
2
3
4
5
6
7
8
9
10
Var
i
abl
e
Fi
x
e
dCos
t
s Cos
t
s
1
,
080
1
,
080
400
1
,
350
1
,
900
2
,
500
Tot
alCos
t
Ave
r
a
ge
Fi
x
e
dCos
t
Ave
r
a
ge
Var
i
abl
e
Cos
t
Ave
r
a
ge
Tot
alCos
t
Mar
gi
nal
Cos
t
965
400
450
1,
480
2,
430
475
216
4,
280
4
,
100
5
,
400
7
,
300
700
135
10,
880
980
150. Wha
ti
st
hemar
gi
nalc
os
tofc
r
e
a
t
i
ngt
het
e
nt
hi
ns
t
r
uc
t
i
onalmodul
ei
nagi
ve
nmont
h?
a
. $900
b.$1,
250
c
. $2,
500
d.$3,
060
ANSWER:
c
.
$2,
500
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
151. Wha
ti
st
hea
ve
r
a
gevar
i
abl
ec
os
tf
ort
hemont
hi
fs
i
xi
ns
t
r
uc
t
i
onalmodul
e
sar
epr
oduc
e
d?
a
. $180
b.$533.
33
c
. $700
d.$713.
33
ANSWER:
b.
$533.
33
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
152. Wha
ti
st
hea
ve
r
a
gefix
e
dc
os
tf
ort
hemont
hi
fni
nei
ns
t
r
uc
t
i
onalmodul
e
sar
epr
oduc
e
d?
a
. $108
b.$120
c
. $150
d.$811.
11
ANSWER:
b.
$120
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  396
153. How manyi
ns
t
r
uc
t
i
onalmodul
e
sar
epr
oduc
e
dwhe
nmar
gi
nalc
os
ti
s$1
,
300?
a
.4
b.5
c
.7
d.8
ANSWER:
d.
8
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
154. Onemont
h,Te
ac
he
r
'
sHe
l
pe
rpr
oduc
e
d18i
ns
t
r
uc
t
i
onalmodul
e
s
.Wha
twast
hea
ve
r
a
gefix
e
dc
os
tf
ort
ha
tmont
h?
a
. 60
b.108
c
. 811
d.I
tc
an'
tbede
t
e
r
mi
ne
df
r
om t
hei
nf
or
ma
t
i
ongi
ve
n.
ANSWER:
a
.
60
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
155. Atwha
tl
e
ve
lofout
putwi
l
la
ve
r
a
gevar
i
abl
ec
os
te
quala
ve
r
a
get
ot
alc
os
t
?
a
. whe
nmar
gi
nalc
os
te
qual
sa
ve
r
a
get
ot
alc
os
t
b.f
oral
ll
e
ve
l
sofout
puti
nwhi
c
ha
ve
r
a
gevar
i
abl
ec
os
ti
sf
al
l
i
ng
c
. whe
nmar
gi
nalc
os
te
qual
sa
ve
r
a
gevar
i
abl
ec
os
t
d.The
r
ei
snotal
e
ve
lofout
putwhe
r
et
hi
soc
c
ur
s
,asl
ongasfix
e
dc
os
t
sar
epos
i
t
i
ve
.
ANSWER:
d.
The
r
ei
snotal
e
ve
lofout
putwhe
r
et
hi
soc
c
ur
s
,asl
ongasfix
e
dc
os
t
sar
epos
i
t
i
ve
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
Us
et
hef
ol
l
owi
ngi
nf
or
ma
t
i
ont
oans
werques
t
i
ons156t
hr
ough158
.
Far
me
rJ
ac
ki
sawa
t
e
r
me
l
onf
ar
me
r
.
I
fJ
ac
kpl
ant
snos
e
e
dsonhi
sf
ar
m,
hege
t
snohar
ve
s
t
.
I
fhepl
a
nt
s1ba
gofs
e
e
ds
,
he
ge
t
s30wa
t
e
r
me
l
ons
.I
fhepl
ant
s2ba
gsofs
e
e
ds
,
hege
t
s50wa
t
e
r
me
l
ons
.I
fhepl
ant
s3ba
gsofs
e
e
dshege
t
s60
wa
t
e
r
me
l
ons
.Aba
gofs
e
e
dsc
os
t
s$100,
andt
hec
os
t
sofs
e
e
dsar
ehi
sonl
yc
os
t
s
.
156. Whi
c
hoft
hef
ol
l
owi
ngs
t
a
t
e
me
nt
si
s(
ar
e
)t
r
ue
?
(
i
) Far
me
rJ
ac
ke
xpe
r
i
e
nc
e
sde
c
r
e
as
i
ngmar
gi
nalpr
oduc
t
.
(
i
i
) Far
me
rJ
ac
k’
spr
oduc
t
i
onf
unc
t
i
oni
snonl
i
ne
ar
.
(
i
i
i
) Far
me
rJ
ac
k’
st
ot
alc
os
tc
ur
vei
sl
i
ne
ar
.
a
.(
i
)onl
y
b.(
i
)and(
i
i
)
c
.(
i
i
)onl
y
d.(
i
)and(
i
i
i
)
ANSWER:
b.
(
i
)and(
i
i
)
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
157. Whi
c
hoft
hef
ol
l
owi
ngs
t
a
t
e
me
nt
si
s
(
ar
e
)t
r
ueofJ
ac
k’
smar
gi
nalc
os
t
?
(
i
) Hi
smar
gi
nalc
os
tc
ur
vei
sUs
hape
d.
(
i
i
) Hi
smar
gi
nalc
os
tde
c
r
e
as
e
swi
t
hi
nc
r
e
as
e
dwa
t
e
r
me
l
onout
put
.
(
i
i
i
) Hi
smar
gi
nalc
os
tr
e
fle
c
t
sdi
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
a
.(
i
i
)onl
y
b.(
i
i
i
)onl
y
c
.(
i
)and(
i
i
i
)
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
(
i
i
i
)onl
y
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
158. J
ac
k’
spr
oduc
t
i
onf
unc
t
i
onwi
l
l
a
. de
c
r
e
as
ea
tade
c
r
e
as
i
ngr
a
t
e
.
b.de
c
r
e
as
ea
tani
nc
r
e
as
i
ngr
a
t
e
.
c
.i
nc
r
e
as
ea
tade
c
r
e
as
i
ngr
a
t
e
.
d.i
nc
r
e
as
ea
tani
nc
r
e
as
i
ngr
a
t
e
.
ANSWER:
c
.
i
nc
r
e
as
ea
tade
c
r
e
as
i
ngr
a
t
e
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
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Chapter 13 /The Costs of Production  397
159. Har
r
y'
sHot
dogsi
sas
mal
ls
t
r
e
e
tve
ndorbus
i
ne
s
sowne
dbyHar
r
yHuggi
ns
.Har
r
yi
st
r
yi
ngt
oge
tabe
t
t
e
r
unde
r
s
t
andi
ngofhi
sc
os
t
sbyc
a
t
e
gor
i
zi
ngt
he
m asfix
e
dorvar
i
abl
e
.Whi
c
hoft
hef
ol
l
owi
ngc
os
t
sar
emos
tl
i
ke
l
yt
o
bec
ons
i
de
r
e
dfix
e
dc
os
t
s
?
a
.t
hec
os
tofmus
t
ar
d
b.t
hec
os
tofhot
dogbuns
c
. wa
ge
spai
dt
owor
ke
r
st
ha
ts
e
l
lhot
dogs
d.t
hec
os
tofbookke
e
pi
ngs
e
r
vi
c
e
s
ANSWER:
d.
t
hec
os
tofbookke
e
pi
ngs
e
r
vi
c
e
s
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
160. Har
r
yPot
t
e
ri
sas
mal
ls
t
r
e
e
tve
ndors
e
r
vi
c
ewhoc
ont
r
ac
t
st
opr
oduc
eands
e
l
lmol
de
dpl
as
t
i
cs
ouve
ni
r
s(
ke
yc
hai
ns
,
c
omme
mor
a
t
i
vepl
as
t
i
cc
oi
ns
,pl
as
t
i
cani
mal
s
,e
t
c
.
)a
ts
mal
l
,
c
ount
yc
ar
ni
val
s
.Asowne
roft
hefir
m,
Har
r
ymus
t
de
c
i
dehow muc
hofe
ac
hpr
oduc
tt
opr
oduc
e
.Ake
ye
l
e
me
ntoft
hi
sde
c
i
s
i
oni
s
a
. how c
os
t
swi
l
lvar
yashec
hange
st
hel
e
ve
lofpr
oduc
t
i
on.
b.t
hec
os
tofbookke
e
pi
ngs
e
r
vi
c
e
s
.
c
.t
hefix
e
dc
os
tofpr
oduc
t
i
on.
d.t
hec
os
tofhi
ss
e
l
l
i
ngboot
h.
ANSWER:
a
.
how c
os
t
swi
l
lvar
yashec
hange
st
hel
e
ve
lofpr
oduc
t
i
on.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
161. Har
r
y'
sHot
dogsi
sas
mal
ls
t
r
e
e
tve
ndorbus
i
ne
s
sowne
dbyHar
r
yHuggi
ns
.I
fHar
r
ymake
s15hot
dogsi
nhi
sfir
s
t
hourofbus
i
ne
s
sandi
nc
ur
sat
ot
alc
os
tof$16
.
50,
hi
sa
ve
r
a
get
ot
alc
os
tpe
rhot
dogi
s
a
. $1.
10
.
b.$6.
50
.
c
. $16.
50
d.I
ti
si
mpos
s
i
bl
et
ode
t
e
r
mi
newi
t
houts
pe
c
i
fici
nf
or
ma
t
i
ononvar
i
abl
ec
os
t
.
ANSWER:
a
.
$1.
10
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
162. Whe
nafir
mi
sabl
et
oputi
dl
ee
qui
pme
ntt
ous
ebyhi
r
i
nganot
he
rwor
ke
r
,
a
. var
i
abl
ec
os
t
swi
l
lr
i
s
e
.
b.var
i
abl
ec
os
t
swi
l
lf
al
l
.
c
. fix
e
dc
os
t
swi
l
lf
al
l
.
d.fix
e
dc
os
t
sandvar
i
abl
ec
os
t
swi
l
lr
i
s
e
.
ANSWER:
a
.
var
i
abl
ec
os
t
swi
l
lr
i
s
e
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
163. Thi
r
s
t
yThe
l
maownsandope
r
a
t
e
sas
mal
ll
e
monades
t
and.
Whe
nThe
l
mai
spr
oduc
i
ngas
mal
lquant
i
t
yof
l
e
monades
hehasf
e
w wor
ke
r
sandhe
re
qui
pme
nti
snotbe
i
ngf
ul
l
yut
i
l
i
ze
d.Be
c
aus
es
hec
ane
as
i
l
yputhe
ri
dl
er
e
s
our
c
e
s
t
ous
e
,
a
.t
hemar
gi
nalc
os
tofane
xt
r
awor
ke
ri
sl
ar
ge
.
b.t
hemar
gi
nalc
os
tofonemor
egl
as
sofl
e
monadei
ss
mal
l
.
c
.t
hemar
gi
nalpr
oduc
tofane
xt
r
awor
ke
ri
ss
mal
l
.
d.he
rl
e
monades
t
andi
sl
i
ke
l
yt
obec
r
owde
dwi
t
hwor
ke
r
s
.
ANSWER:
b.
t
hemar
gi
nalc
os
tofonemor
egl
as
sofl
e
monadei
ss
mal
l
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
164. Whe
nafir
mi
sope
r
a
t
i
nga
tane
ffic
i
e
nts
c
al
e
,
a
.a
ve
r
a
gevar
i
abl
ec
os
ti
smi
ni
mi
ze
d.
b.a
ve
r
a
gefix
e
dc
os
ti
smi
ni
mi
ze
d.
c
.a
ve
r
a
get
ot
alc
os
ti
smi
ni
mi
ze
d.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
a
ve
r
a
get
ot
alc
os
ti
smi
ni
mi
ze
d.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
165. Whi
c
hoft
hef
ol
l
owi
ngmus
tal
wa
ysbet
r
ueast
hequant
i
t
yofout
puti
nc
r
e
as
e
s
?
a
. Mar
gi
nalc
os
tmus
tr
i
s
e
.
b.Ave
r
a
get
ot
alc
os
tmus
tr
i
s
e
.
c
. Ave
r
a
gevar
i
abl
ec
os
tmus
tr
i
s
e
.
d.Ave
r
a
gefix
e
dc
os
tmus
tf
al
l
.
ANSWER:
d.
Ave
r
a
gefix
e
dc
os
tmus
tf
al
l
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
Downloaded by Madina Walizada (madina.walizada1382@gmail.com)
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Chapter 13 /The Costs of Production  398
166. Whi
c
hoft
hef
ol
l
owi
ngs
t
a
t
e
me
nt
si
sf
al
s
e
?
a
. Themar
gi
nalc
os
toft
hefif
t
huni
tofout
pute
qua
l
st
het
ot
alc
os
toffiveuni
t
smi
nust
het
ot
alc
os
toff
ouruni
t
s
.
b.Thet
ot
alvar
i
abl
ec
os
tofs
e
ve
nuni
t
se
qual
st
hea
ve
r
a
gevar
i
abl
ec
os
tofs
e
ve
nuni
t
st
i
me
ss
e
ve
n.
c
.I
fmar
gi
nalc
os
ti
sr
i
s
i
ng,
t
he
na
ve
r
a
gevar
i
abl
ec
os
tmus
tber
i
s
i
ng.
d.Themar
gi
nalc
os
toft
hefif
t
huni
tofout
pute
qua
l
st
het
ot
alvar
i
abl
ec
os
toffiveuni
t
smi
nust
het
ot
alvar
i
abl
e
c
os
toff
ouruni
t
s
.
ANSWER:
c
TYPE:
M DI
FFI
CULTY:2SECTI
ON 13
.
3
167. Whe
nmar
gi
nalc
os
ti
sr
i
s
i
ng,
a
ve
r
a
gevar
i
abl
ec
os
t
a
. mus
tber
i
s
i
ng.
b.mus
tbef
al
l
i
ng.
c
. mus
tbec
ons
t
ant
.
d.c
oul
dber
i
s
i
ngorf
al
l
i
ng.
ANSWER:
d.
c
oul
dber
i
s
i
ngorf
al
l
i
ng.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
168. Cons
i
de
rt
hef
ol
l
owi
ngi
nf
or
ma
t
i
onaboutbr
e
adpr
oduc
t
i
ona
tBe
t
h’
sBake
r
y:
Wor
ke
r
Mar
gi
nalPr
oduc
t
1
5
2
7
3
10
4
11
5
8
6
6
7
4
Be
t
hpa
ysal
lhe
rwor
ke
r
st
hes
amewa
geandl
abori
she
ronl
yvar
i
abl
ec
os
t
.
Fr
om t
hi
si
nf
or
ma
t
i
onwec
anc
onc
l
ude
t
ha
tBe
t
h’
smar
gi
nalc
os
t
a
. de
c
l
i
ne
sasout
puti
nc
r
e
as
e
sf
r
om 0t
o33
,buti
nc
r
e
as
e
saf
t
e
rt
ha
t
.
b.de
c
l
i
ne
sasout
puti
nc
r
e
as
e
sf
r
om 0t
o11
,buti
nc
r
e
as
e
saf
t
e
rt
ha
t
.
c
.i
nc
r
e
as
e
sasout
puti
nc
r
e
as
e
sf
r
om 0t
o11
,butde
c
l
i
ne
saf
t
e
rt
ha
t
.
d.c
ont
i
nual
l
yi
nc
r
e
as
e
sasout
putr
i
s
e
s
.
ANSWER:
a
.
de
c
l
i
ne
sasout
puti
nc
r
e
as
e
sf
r
om 0t
o33
,buti
nc
r
e
as
e
saf
t
e
rt
ha
t
.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
169. Cons
i
de
rt
hef
ol
l
owi
ngi
nf
or
ma
t
i
onaboutbas
e
ba
l
lpr
oduc
t
i
ona
tBob’
sBas
e
bal
lFac
t
or
y:
Wor
ke
r
Mar
gi
nalPr
oduc
t
1
3
2
5
3
8
4
10
5
7
6
4
7
2
Bobpa
ysal
lhi
swor
ke
r
st
hes
amewa
geandl
abori
shi
sonl
yvar
i
abl
ec
os
t
.
Fr
om t
hi
si
nf
or
ma
t
i
onwec
anc
onc
l
ude
t
ha
tBob’
sa
ve
r
a
gevar
i
abl
ec
os
tde
c
r
e
as
e
s
a
. asout
putr
i
s
e
sf
r
om 0t
o10
,butr
i
s
e
saf
t
e
rt
ha
t
.
b.asout
putr
i
s
e
sf
r
om 0t
o26
,butr
i
s
e
saf
t
e
rt
ha
t
.
c
. asout
putr
i
s
e
sf
r
om 0t
o33
,buti
nc
r
e
as
e
saf
t
e
rt
ha
t
.
d.c
ont
i
nual
l
yasout
putr
i
s
e
s
.
ANSWER:
c
.
asout
putr
i
s
e
sf
r
om 0t
o33
,buti
nc
r
e
as
e
saf
t
e
rt
ha
t
.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
170. AtBe
r
t
’
sBoot
e
r
y
,t
het
ot
alc
os
tofpr
oduc
i
ngt
we
nt
ypai
r
sofboot
si
s$400
.Themar
gi
nalc
os
tofpr
oduc
i
ngt
he
t
we
nt
yfir
s
tpai
rofboot
si
s$83.
Wec
anc
onc
l
udet
ha
tt
hea
ve
r
a
ge
a
. var
i
abl
ec
os
tof21pai
r
sofboot
si
s$23.
b.t
ot
alc
os
tof21pai
r
sofboot
si
s$23
.
c
.t
ot
alc
os
tof21pai
r
sofboot
si
s$15
.
09
d.t
ot
alc
os
tof21pai
r
sofboot
sc
annotbec
al
c
ul
a
t
e
df
r
om t
hei
nf
or
ma
t
i
ongi
ve
n.
ANSWER:
b.
t
ot
alc
os
tof21pai
r
sofboot
si
s$23
.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
3
Downloaded by Madina Walizada (madina.walizada1382@gmail.com)
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Chapter 13 /The Costs of Production  399
171. Oneoft
hemos
ti
mpor
t
antpr
ope
r
t
i
e
sofc
os
tc
ur
ve
si
st
ha
t
a
.f
ormos
tpr
oduc
e
r
s,
t
hea
ve
r
a
get
ot
alc
os
tc
ur
vene
ve
rc
r
os
s
e
st
hemar
gi
nalc
os
tc
ur
ve
.
b.t
hea
ve
r
a
gefix
e
dc
os
tc
ur
vemus
te
ve
nt
ual
l
yr
i
s
e
.
c
.t
hea
ve
r
a
get
ot
alc
os
tc
ur
vefir
s
tr
i
s
e
s
,t
he
nf
al
l
swi
t
hi
nc
r
e
as
e
dout
put
.
d.t
hemar
gi
nalc
os
tc
ur
vee
ve
nt
ual
l
yr
i
s
e
swi
t
ht
hequant
i
t
yofout
put
.
ANSWER:
d.
t
hemar
gi
nalc
os
tc
ur
vee
ve
nt
ual
l
yr
i
s
e
swi
t
ht
hequant
i
t
yofout
put
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
3
172. Whe
naf
ac
t
or
yi
sope
r
a
t
i
ngi
nt
hes
hor
tr
un,
a
.i
tc
annotal
t
e
rvar
i
abl
ec
os
t
s
.
b.t
ot
alc
os
tandvar
i
abl
ec
os
tar
eus
ual
l
yt
hes
ame
.
c
.a
ve
r
a
gefix
e
dc
os
tr
i
s
e
sasout
puti
nc
r
e
as
e
s
.
d.i
tc
annotadj
us
tt
hequant
i
t
yoffix
e
di
nput
s
.
ANSWER:
d.
i
tc
annotadj
us
tt
hequant
i
t
yoffix
e
di
nput
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
173. I
nt
hel
ongr
un,
a
.i
nput
st
ha
twe
r
efix
e
di
nt
hes
hor
tr
unr
e
mai
nfix
e
d.
b.i
nput
st
ha
twe
r
efix
e
di
nt
hes
hor
tr
unbe
c
omevar
i
abl
e
.
c
.i
nput
st
ha
twe
r
evar
i
abl
ei
nt
hes
hor
tr
unbe
c
omefix
e
d.
d.var
i
abl
ei
nput
sar
er
ar
e
l
yus
e
d.
ANSWER:
b.
i
nput
st
ha
twe
r
efix
e
di
nt
hes
hor
tr
unbe
c
omevar
i
abl
e
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
Thefigur
ebe
l
ow de
pi
c
t
sa
ve
r
a
get
ot
alc
os
tf
unc
t
i
onsf
orafir
mt
ha
tpr
oduc
e
saut
omobi
l
e
s
.Us
et
hefigur
et
oans
we
r
que
s
t
i
ons174t
hr
ough178.
174. Whi
c
hoft
hec
ur
ve
si
smos
tl
i
ke
l
yt
oc
har
ac
t
e
r
i
zet
hes
hor
t
r
una
ve
r
a
get
ot
alc
os
tc
ur
veoft
hes
mal
l
e
s
tf
ac
t
or
y?
a
. ATCA
b.ATCB
c
. ATCC
d.ATCD
ANSWER:
a
.
ATCA
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
4
Downloaded by Madina Walizada (madina.walizada1382@gmail.com)
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Chapter 13 /The Costs of Production  400
175. Whi
c
hc
ur
ver
e
pr
e
s
e
nt
st
hel
ongr
una
ve
r
a
get
ot
alc
os
t
?
a
. ATCA
b.ATCB
c
. ATCC
d.ATCD
ANSWER:
d.
ATCD
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
4
176. I
nt
hel
ongr
un,t
hefir
mc
anope
r
a
t
eonwhi
c
hoft
hef
ol
l
owi
nga
ve
r
a
get
ot
alc
os
tc
ur
ve
s
?
a
. ATCA
b.ATCB
c
. ATCC
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
4
177. Thi
sfir
me
xpe
r
i
e
nc
e
sdi
s
e
c
onomi
e
sofs
c
al
ea
twha
tout
putl
e
ve
l
s
?
a
. out
putl
e
ve
l
saboveN
b.out
putl
e
ve
l
sbe
t
we
e
nM andN
c
. out
putl
e
ve
l
sbe
l
ow M
d.Al
loft
heabovear
ec
or
r
e
c
t
,
i
ft
hefir
mi
sope
r
a
t
i
ngi
nt
hel
ongr
un.
ANSWER:
a
.
out
putl
e
ve
l
saboveN
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
178. Atl
e
ve
l
sofout
putbe
l
ow M t
hefir
me
xpe
r
i
e
nc
e
s
a
.e
c
onomi
e
sofs
c
al
e
.
b.di
s
e
c
onomi
e
sofs
c
al
e
.
c
.e
c
onomi
cpr
ofit
.
d.ac
c
ount
i
ngpr
ofit
.
ANSWER:
a
.
e
c
onomi
e
sofs
c
al
e
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
179. Thel
ongr
una
ve
r
a
get
ot
alc
os
tc
ur
vei
sal
wa
ys
a
. fla
t
t
e
rt
hant
hes
hor
t
r
una
ve
r
a
get
ot
alc
os
tc
ur
ve
,butnotne
c
e
s
s
ar
i
l
yhor
i
z
ont
al
.
b.hor
i
z
ont
al
.
c
.f
al
l
i
ngasout
puti
nc
r
e
as
e
s
.
d.r
i
s
i
ngasout
puti
nc
r
e
as
e
s
.
ANSWER:
a
.
fla
t
t
e
rt
hant
hes
hor
t
r
una
ve
r
a
get
ot
alc
os
tc
ur
ve
,butnotne
c
e
s
s
ar
i
l
yhor
i
z
ont
al
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
180. Thel
e
ngt
hoft
hes
hor
tr
un
a
.i
sdi
ffe
r
e
ntf
ordi
ffe
r
e
ntt
ype
soffir
ms
.
b.c
anne
ve
re
x
c
e
e
d3ye
ar
s
.
c
.c
anne
ve
re
x
c
e
e
d1ye
ar
.
d.i
sal
wa
ysl
e
s
st
han6mont
hs
.
ANSWER:
a
.
i
sdi
ffe
r
e
ntf
ordi
ffe
r
e
ntt
ype
soffir
ms
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
4
181. Ec
onomi
e
sofs
c
al
eoc
c
urwhe
n
a
.l
ongr
una
ve
r
a
get
ot
alc
os
t
sr
i
s
easout
puti
nc
r
e
as
e
s
.
b.l
ongr
una
ve
r
a
get
ot
alc
os
t
sf
al
lasout
puti
nc
r
e
as
e
s
.
c
.a
ve
r
a
gefix
e
dc
os
t
sar
ef
al
l
i
ng.
d.a
ve
r
a
gefix
e
dc
os
t
sar
ec
ons
t
ant
.
ANSWER:
b.
l
ongr
una
ve
r
a
get
ot
alc
os
t
sf
al
lasout
puti
nc
r
e
as
e
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
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Chapter 13 /The Costs of Production  401
182. Di
s
e
c
onomi
e
sofs
c
al
eoc
c
urwhe
n
a
.a
ve
r
a
gefix
e
dc
os
t
sar
ef
al
l
i
ng.
b.a
ve
r
a
gefix
e
dc
os
t
sar
ec
ons
t
ant
.
c
.l
ongr
una
ve
r
a
get
ot
alc
os
t
sr
i
s
easout
puti
nc
r
e
as
e
s
.
d.l
ongr
una
ve
r
a
get
ot
alc
os
t
sf
al
lasout
puti
nc
r
e
as
e
s
.
ANSWER:
c
.
l
ongr
una
ve
r
a
get
ot
alc
os
t
sr
i
s
easout
puti
nc
r
e
as
e
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
183. Cons
t
antr
e
t
ur
nst
os
c
al
eoc
c
urwhe
n
a
.l
ongr
unt
ot
alc
os
t
sar
ec
ons
t
antasout
puti
nc
r
e
as
e
s
.
b.l
ongr
una
ve
r
a
get
ot
alc
os
t
sar
ec
ons
t
antasout
puti
nc
r
e
as
e
s
.
c
.t
hefir
m'
sl
ongr
una
ve
r
a
gec
os
tc
ur
vei
sf
al
l
i
ngasout
puti
nc
r
e
as
e
s
.
d.t
hefir
m'
sl
ongr
una
ve
r
a
gec
os
tc
ur
vei
sr
i
s
i
nga
sout
puti
nc
r
e
as
e
s
.
ANSWER:
b.
l
ongr
una
ve
r
a
get
ot
alc
os
t
sar
ec
ons
t
antasout
puti
nc
r
e
as
e
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
184. Spe
c
i
al
i
za
t
i
onamongwor
ke
r
soc
c
ur
swhe
n
a
. qual
i
t
ymana
ge
me
ntal
l
owswor
ke
r
st
os
wi
t
c
hf
r
om onet
as
kt
oanot
he
r
.
b.e
ac
hwor
ke
ri
sal
l
owe
dt
ope
r
f
e
c
tonepar
t
i
c
ul
art
as
k.
c
.e
ac
hwor
ke
ri
sr
e
s
pons
i
bl
ef
oranumbe
rofdi
ffe
r
e
ntt
as
ks
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
b.
e
ac
hwor
ke
ri
sal
l
owe
dt
ope
r
f
e
c
tonepar
t
i
c
ul
art
as
k.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
4
185. I
fafir
m want
st
oc
api
t
al
i
zeone
c
onomi
e
sofs
c
al
e
,
i
tma
ybeabl
et
odos
oby
a
. as
s
i
gni
ngl
i
mi
t
e
dt
as
kst
ot
he
i
re
mpl
oye
e
s
,s
ot
he
yc
anmas
t
e
rt
hos
et
a
s
ks
.
b.e
mpl
oyi
ngas
mal
l
e
rnumbe
rofwor
ke
r
s
.
c
. pr
oduc
i
ngas
mal
l
e
rquant
i
t
yofout
put
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
as
s
i
gni
ngl
i
mi
t
e
dt
as
kst
ot
he
i
re
mpl
oye
e
s
,s
ot
he
yc
anmas
t
e
rt
hos
et
a
s
ks
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
186. I
nr
e
f
e
r
e
nc
et
os
e
t
t
i
ngt
hepr
oduc
t
i
onl
e
ve
l
,afir
m’
sc
os
tc
ur
ve
s
a
. byt
he
ms
e
l
ve
sdonott
e
l
luswha
tde
c
i
s
i
onst
hefir
m wi
l
lmake
.
b.di
c
t
a
t
ewha
tde
c
i
s
i
onst
hefir
m wi
l
lmake
.
c
. ha
venobe
ar
i
ngonwha
tde
c
i
s
i
onst
hefir
m wi
l
lma
ke
.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
a
.
byt
he
ms
e
l
ve
sdonott
e
l
luswha
tde
c
i
s
i
onst
hefir
m wi
l
lmake
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
187. Ec
onomi
e
sofs
c
al
ear
i
s
ewhe
n
a
. ane
c
onomyi
ss
e
l
f
s
uffic
i
e
nti
npr
oduc
t
i
on.
b.i
ndi
vi
dual
si
nas
oc
i
e
t
yar
es
e
l
f
s
uffic
i
e
nt
.
c
. fix
e
dc
os
t
sar
el
ar
ger
e
l
a
t
i
vet
ovar
i
abl
ec
os
t
s
.
d.wor
ke
r
sar
eabl
et
os
pe
c
i
al
i
zei
napar
t
i
c
ul
art
a
s
k.
ANSWER:
d.
wor
ke
r
sar
eabl
et
os
pe
c
i
al
i
zei
napar
t
i
c
ul
art
as
k.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
188. How l
ongdoe
si
tt
akeafir
mt
ogof
r
om t
hes
hor
tr
unt
ot
hel
ongr
un?
a
.s
i
xmont
hs
b.oneye
ar
c
.t
woye
ar
s
d.I
tde
pe
ndsont
hena
t
ur
eoft
hefir
m.
ANSWER:
d.
I
tde
pe
ndsont
hena
t
ur
eoft
hefir
m.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
4
189. I
nt
hel
ongr
un,afir
mt
ha
tpr
oduc
e
sands
e
l
l
sc
omput
e
r
sge
t
st
oc
hoos
e
a
. how manywor
ke
r
st
ohi
r
e
.
b.t
hes
i
zeofi
t
sf
ac
t
or
i
e
s
.
c
. whi
c
hs
hor
t
r
una
ve
r
a
ge
t
ot
al
c
os
tc
ur
vet
ous
e
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Al
loft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
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Chapter 13 /The Costs of Production  402
190. Whe
n,f
orafir
m,
l
ongr
una
ve
r
a
get
ot
alc
os
tde
c
r
e
as
e
sast
hequant
i
t
yofout
puti
nc
r
e
as
e
s
,weha
veas
i
t
ua
t
i
onof
a
.e
c
onomi
e
sofs
c
al
e
.
b.di
s
e
c
onomi
e
sofs
c
al
e
.
c
.c
oor
di
na
t
i
onpr
obl
e
msar
i
s
i
ngf
r
om t
hel
ar
ges
i
zeoft
hefir
m.
d.fix
e
dc
os
t
sgr
e
a
t
l
ye
x
c
e
e
di
ngvar
i
abl
ec
os
t
s
.
ANSWER:
a
.
e
c
onomi
e
sofs
c
al
e
.
TYPE:
M DI
FFI
CULTY:1SECTI
ON:13.
4
191. “
Cons
t
antr
e
t
ur
nst
os
c
al
e
”r
e
f
e
r
st
oas
i
t
ua
t
i
oni
nwhi
c
h,
f
orafir
m,
a
. al
loft
hefir
m’
ss
hor
t
r
una
ve
r
a
get
ot
alc
os
tc
ur
ve
sar
ehor
i
z
ont
al
.
b.s
hor
t
r
una
ve
r
a
get
ot
alc
os
tdoe
snotc
hangeast
hequant
i
t
yofout
putc
hange
s
.
c
.l
ongr
una
ve
r
a
get
ot
alc
os
tdoe
snotc
hangeast
hequant
i
t
yofout
putc
hange
s
.
d.Al
loft
heabovear
ec
or
r
e
c
t
.
ANSWER:
c
.
l
ongr
una
ve
r
a
get
ot
alc
os
tdoe
snotc
hangeast
hequant
i
t
yofout
putc
hange
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
192. Longr
una
ve
r
a
get
ot
alc
os
tc
ur
ve
sar
eof
t
e
nUs
hape
d
a
.f
ort
hes
amer
e
as
onst
ha
ta
ve
r
a
get
ot
alc
os
tc
ur
ve
sar
eof
t
e
nUs
hape
d.
b.be
c
aus
eofc
ons
t
antr
e
t
ur
nst
os
c
al
e
.
c
. be
c
aus
eofi
nc
r
e
as
i
ngc
oor
di
na
t
i
onpr
obl
e
msa
tl
ow l
e
ve
l
sofpr
oduc
t
i
onandi
nc
r
e
as
i
ngs
pe
c
i
al
i
za
t
i
onofwor
ke
r
s
a
thi
ghl
e
ve
l
sofpr
oduc
t
i
on.
d.be
c
aus
eofi
nc
r
e
as
i
ngs
pe
c
i
al
i
za
t
i
onofwor
ke
r
sa
tl
ow l
e
ve
l
sofpr
oduc
t
i
onandi
nc
r
e
as
i
ngc
oor
di
na
t
i
onpr
obl
e
ms
a
thi
ghl
e
ve
l
sofpr
oduc
t
i
on.
ANSWER:
d.
be
c
aus
eofi
nc
r
e
as
i
ngs
pe
c
i
al
i
za
t
i
onofwor
ke
r
sa
tl
ow l
e
ve
l
sofpr
oduc
t
i
onandi
nc
r
e
as
i
ngc
oor
di
na
t
i
on
pr
obl
e
msa
thi
ghl
e
ve
l
sofpr
oduc
t
i
on.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
4
Re
f
e
rt
ot
hedi
a
gr
am be
l
ow t
oans
we
rQue
s
t
i
ons193t
hr
ough195.
193. Thet
hr
e
ea
ve
r
a
get
ot
alc
os
tc
ur
ve
sont
hedi
a
gr
am c
or
r
e
s
pondt
ot
hr
e
edi
ffe
r
e
nt
a
.t
i
mehor
i
z
ons
.
b.pr
oduc
t
s
.
c
. fir
ms
.
d.f
ac
t
or
ys
i
ze
s
.
ANSWER:
d.
f
ac
t
or
ys
i
ze
s
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
194. Thefir
me
xpe
r
i
e
nc
e
se
c
onomi
e
sofs
c
al
ei
fi
tc
hange
si
t
sl
e
ve
lofout
put
a
.f
r
om Q1t
oQ2.
b.f
r
om Q2t
oQ3.
c
.f
r
om Q3t
oQ4.
d.f
r
om Q4t
oQ5.
ANSWER:
a
.
f
r
om Q1t
oQ2
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
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Chapter 13 /The Costs of Production  403
195. Thefir
me
xpe
r
i
e
nc
e
sdi
s
e
c
onomi
e
sofs
c
al
ei
fi
tc
ha
nge
si
t
sl
e
ve
lofout
put
a
.f
r
om Q1t
oQ2.
b.f
r
om Q2t
oQ3.
c
.f
r
om Q3t
oQ4.
d.f
r
om Q4t
oQ5.
ANSWER:
d.
f
r
om Q4t
oQ5.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
196. Thef
undame
nt
alr
e
as
ont
ha
tmar
gi
nalc
os
te
ve
nt
ual
l
yr
i
s
e
sasout
puti
nc
r
e
as
e
si
sbe
c
aus
eof
a
.e
c
onomi
e
sofs
c
al
e
.
b.di
s
e
c
onomi
e
sofs
c
al
e
.
c
. di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
d.r
i
s
i
nga
ve
r
a
gefix
e
dc
os
t
.
ANSWER:
c
.
di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
197. Tom ownsaf
ac
t
or
yi
nwhi
c
hhehaspr
oduc
e
dTVsf
orfiveye
ar
s
.Hehaske
ptt
r
ac
kofhi
sa
ve
r
a
get
ot
alc
os
tashi
s
l
e
ve
lofpr
oduc
t
i
onvar
i
e
s
.Thi
si
nf
or
ma
t
i
oni
ss
ummar
i
ze
dbe
l
ow:
Out
putAve
r
a
geTot
alCos
t
10
$500
20
$400
30
$300
40
$400
50
$500
Fr
om t
hi
si
nf
or
ma
t
i
onwec
anc
onc
l
udet
ha
t
a
. Tom’
sf
ac
t
or
ye
xhi
bi
t
sbot
he
c
onomi
e
sanddi
s
e
c
onomi
e
sofs
c
al
e
.
b.Tom’
sf
ac
t
or
ye
xhi
bi
t
sonl
ydi
s
e
c
onomi
e
sofs
c
al
e
.
c
. Tom’
sf
ac
t
or
ye
xhi
bi
t
sc
ons
t
antr
e
t
ur
nst
os
c
al
e
.
d.Noneoft
heabovear
ec
or
r
e
c
t
.
ANSWER:
d.
Noneoft
heabovear
ec
or
r
e
c
t
.
TYPE:
M DI
FFI
CULTY:3SECTI
ON:13.
4
198. Whi
c
hoft
hef
ol
l
owi
ngs
t
a
t
e
me
nt
si
sf
al
s
e
?
a
.I
nt
hel
ongr
un,t
he
r
ear
enofix
e
dc
os
t
s
.
b.Mar
gi
nalc
os
ti
si
nde
pe
nde
ntoffix
e
dc
os
t
s
.
c
. Ec
onomi
e
sofs
c
al
ei
sas
hor
t
r
unc
onc
e
pt
.
d.Di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
te
xpl
ai
nsi
nc
r
e
as
i
ngmar
gi
nalc
os
t
.
ANSWER:
c
.
Ec
onomi
e
sofs
c
al
ei
sas
hor
t
r
unc
onc
e
pt
.
TYPE:
M DI
FFI
CULTY:2SECTI
ON:13.
4
TRUE/
FALSE
1. Exami
na
t
i
onoft
hec
os
t
sofpr
oduc
t
i
oni
sunne
c
e
s
s
ar
yt
ot
hefie
l
dofi
ndus
t
r
i
alor
gani
za
t
i
on.
ANSWER:
FTYPE:TFDI
FFI
CULTY:
2SECTI
ON:13
.
1
2. Ec
onomi
s
t
snor
mal
l
yas
s
umet
ha
tpe
opl
es
t
ar
tt
he
i
rownbus
i
ne
s
s
e
st
ohe
l
ps
oc
i
e
t
ymaxi
mi
zei
t
si
nc
ome
.
ANSWER:
FTYPE:TFDI
FFI
CULTY:
2SECTI
ON:13
.
1
3. Whe
ne
c
onomi
s
t
ss
pe
akofafir
m’
sc
os
t
s
,t
he
yar
eus
ual
l
ye
x
c
l
udi
ngt
heoppor
t
uni
t
yc
os
t
s
.
ANSWER:
FTYPE:TFDI
FFI
CULTY:
2SECTI
ON:13
.
1
4. Ec
onomi
s
t
sandac
c
ount
ant
sus
ual
l
ydi
s
a
gr
e
eont
hei
nc
l
us
i
onofi
mpl
i
c
i
tc
os
t
si
nt
ot
hec
os
tanal
ys
i
sofafir
m.
ANSWER:
TTYPE:TFDI
FFI
CULTY:1SECTI
ON:13
.
1
5. I
mpl
i
c
i
tc
os
t
sar
ec
os
t
st
ha
tdonotr
e
qui
r
eanout
l
a
yofmone
ybyt
hefir
m.
ANSWER:
TTYPE:TFDI
FFI
CULTY:1SECTI
ON:13
.
1
6. Ac
c
ount
ant
ske
e
pt
r
ac
koft
hemone
yt
ha
tflowsi
nt
oandoutoffir
ms
.
ANSWER:
TTYPE:TFDI
FFI
CULTY:1SECTI
ON:13
.
1
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Chapter 13 /The Costs of Production  404
7. Ac
c
ount
ant
sof
t
e
ni
gnor
ei
mpl
i
c
i
tc
os
t
s
.
ANSWER:
TTYPE:TFDI
FFI
CULTY:1SECTI
ON:13
.
1
8. Ec
onomi
s
t
sandac
c
ount
ant
sbot
hi
nc
l
udef
or
gonei
nc
omeasac
os
tt
oas
mal
lbus
i
ne
s
sowne
r
.
ANSWER:
FTYPE:TFDI
FFI
CULTY:
2SECTI
ON:13
.
1
9. Al
t
houghe
c
onomi
s
t
sandac
c
ount
ant
st
r
e
a
tmanyc
os
t
sdi
ffe
r
e
nt
l
y
,t
he
ybot
ht
r
e
a
tt
hec
os
tofc
api
t
alt
hes
ame
.
ANSWER:
FTYPE:TFDI
FFI
CULTY:
2SECTI
ON:13
.
1
10. I
nt
hel
ongr
un,af
ac
t
or
yi
sus
ual
l
yc
ons
i
de
r
e
dafix
e
di
nput
.
ANSWER:
FTYPE:TFDI
FFI
CULTY:
2SECTI
ON:13
.
2
11. Whe
nt
r
yi
ngt
ounde
r
s
t
andt
hede
c
i
s
i
onmaki
ngpr
oc
e
s
sofdi
ffe
r
e
ntfir
ms
,e
c
onomi
s
t
sas
s
umet
ha
tpe
opl
et
hi
nka
t
t
hemar
gi
n.
ANSWER:
TTYPE:TFDI
FFI
CULTY:2SECTI
ON:13
.
2
12. Thes
hapeoft
het
ot
alc
os
tc
ur
vei
sunr
e
l
a
t
e
dt
ot
hes
hapeoft
hepr
oduc
t
i
onf
unc
t
i
on.
ANSWER:
FTYPE:TFDI
FFI
CULTY:
2SECTI
ON:13
.
2
13. Di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
te
xi
s
t
swhe
nt
het
ot
alc
os
tc
ur
vebe
c
ome
sfla
t
t
e
rasout
put
si
nc
r
e
as
e
s
.
ANSWER:
FTYPE:TFDI
FFI
CULTY:
2SECTI
ON:13
.
3
14. Di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
te
xi
s
t
swhe
nt
hepr
oduc
t
i
onf
unc
t
i
onbe
c
ome
sfla
t
t
e
rasi
nput
si
nc
r
e
as
e
.
ANSWER:
TTYPE:TFDI
FFI
CULTY:2SECTI
ON:13
.
3
15. Se
ve
r
alr
e
l
a
t
e
dme
as
ur
e
sofc
os
tc
anbede
r
i
ve
df
r
om afir
m’
st
ot
alc
os
t
.
ANSWER:
TTYPE:TFDI
FFI
CULTY:2SECTI
ON:13
.
3
16. Fi
x
e
dc
os
t
sar
ei
nc
ur
r
e
de
ve
nwhe
nafir
m doe
snotpr
oduc
eanyt
hi
ng.
ANSWER:
TTYPE:TFDI
FFI
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.
3
17. Var
i
abl
ec
os
t
sus
ual
l
yc
ha
ngeast
hefir
m al
t
e
r
st
hequant
i
t
yofout
putpr
oduc
e
d.
ANSWER:
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CULTY:2SECTI
ON:13
.
3
18. Var
i
abl
ec
os
t
se
qualfix
e
dc
os
t
swhe
nnot
hi
ngi
spr
oduc
e
d.
ANSWER:
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CULTY:
2SECTI
ON:13
.
3
19. Thec
os
tofpr
oduc
i
nganaddi
t
i
onaluni
tofagoodi
snott
hes
ameast
hea
ve
r
a
gec
os
toft
hegood.
ANSWER:
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ON:13
.
3
20. Ave
r
a
gevar
i
abl
ec
os
ti
se
qualt
ot
ot
alvar
i
abl
ec
os
tdi
vi
de
dbyquant
i
t
yofout
put
.
ANSWER:
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CULTY:2SECTI
ON:13
.
3
21. Thea
ve
r
a
get
ot
alc
os
tc
ur
vei
sunaffe
c
t
e
dbydi
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
ANSWER:
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2SECTI
ON:13
.
3
22. Thea
ve
r
a
get
ot
alc
os
tc
ur
ver
e
fle
c
t
st
hes
hapeofbot
ht
hea
ve
r
a
gefix
e
dc
os
tanda
ve
r
a
gevar
i
abl
ec
os
tc
ur
ve
s
.
ANSWER:
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CULTY:2SECTI
ON:13
.
3
23. I
ft
hemar
gi
nalc
os
tc
ur
vei
sr
i
s
i
ng,s
oi
st
hea
ve
r
a
get
ot
alc
os
tc
ur
ve
.
ANSWER:
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CULTY:
2SECTI
ON:13
.
3
24. Themar
gi
nalc
os
tc
ur
vei
nt
e
r
s
e
c
t
st
hea
ve
r
a
get
ot
alc
os
tc
ur
vea
tt
hemi
ni
mum poi
ntoft
hea
ve
r
a
get
ot
alc
os
tc
ur
ve
.
ANSWER:
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CULTY:2SECTI
ON:13
.
3
25. A s
e
c
ondort
hi
r
dwor
ke
rma
yha
veahi
ghe
rmar
gi
nalpr
oduc
tt
hant
hefir
s
twor
ke
ri
nc
e
r
t
ai
nc
i
r
c
ums
t
anc
e
s
.
ANSWER:
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CULTY:2SECTI
ON:13
.
3
26. As
s
umeJ
ac
kr
e
c
e
i
ve
dal
lA’
si
nhi
sc
l
as
s
e
sl
as
ts
e
me
s
t
e
r
.
I
fJ
ac
kge
t
sal
lC’
si
nhi
sc
l
as
s
e
st
hi
ss
e
me
s
t
e
r
,
hi
sGP
A ma
y
orma
ynotf
al
l
.
ANSWER:
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CULTY:3SECTI
ON:13
.
3
27. Ave
r
a
get
ot
alc
os
tandmar
gi
nalc
os
tar
eme
r
e
l
ywa
yst
oe
xpr
e
s
si
nf
or
ma
t
i
ont
ha
ti
sal
r
e
adyc
ont
ai
ne
di
nafir
m'
st
ot
al
c
os
t
.
ANSWER:
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CULTY:2SECTI
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.
3
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Chapter 13 /The Costs of Production  405
28. Ave
r
a
get
ot
alc
os
tr
e
ve
al
show muc
ht
ot
alc
os
twi
l
lc
hangeast
hefir
m al
t
e
r
si
t
sl
e
ve
lofpr
oduc
t
i
on.
ANSWER:
FTYPE:TFDI
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CULTY:
2SECTI
ON:13
.
3
29. Thes
hapeoft
hemar
gi
nalc
os
tc
ur
vet
e
l
l
sapr
oduc
e
rs
ome
t
hi
ngaboutt
hemar
gi
nalpr
oduc
tofhe
rwor
ke
r
s
.
ANSWER:
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CULTY:2SECTI
ON:13
.
3
30. Whe
na
ve
r
a
get
ot
alc
os
tr
i
s
e
si
fapr
oduc
e
re
i
t
he
ri
nc
r
e
as
e
sorde
c
r
e
as
e
spr
oduc
t
i
on,t
he
nt
hefir
mi
ss
ai
dt
obe
ope
r
a
t
i
nga
te
ffic
i
e
nts
c
al
e
.
ANSWER:
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CULTY:2SECTI
ON:13
.
3
31. Fi
x
e
dc
os
t
sar
et
hos
ec
os
t
st
ha
tr
e
mai
nfix
e
dnoma
t
t
e
rhow l
ongt
het
i
mehor
i
z
oni
s
.
ANSWER:
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2SECTI
ON:13
.
4
32. Di
s
e
c
onomi
e
sofs
c
al
eof
t
e
nar
i
s
ebe
c
aus
ehi
ghe
rpr
oduc
t
i
onl
e
ve
l
sal
l
ow s
pe
c
i
al
i
za
t
i
onamongwor
ke
r
s
.
ANSWER:
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.
4
33. Thef
ac
tt
ha
tmanyde
c
i
s
i
onsar
efix
e
di
nt
hes
hor
tr
unbutvar
i
abl
ei
nt
hel
ongr
unhasl
i
t
t
l
ei
mpa
c
tont
hefir
m'
sc
os
t
c
ur
ve
s
.
ANSWER:
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.
4
34. I
ns
omec
as
e
s
,
s
pe
c
i
al
i
za
t
i
onal
l
owsl
ar
ge
rf
ac
t
or
i
e
st
opr
oduc
egoodsa
tal
owe
ra
ve
r
a
gec
os
tt
hans
mal
l
e
rf
ac
t
or
i
e
s
.
ANSWER:
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CULTY:2SECTI
ON:13
.
4
35. Theus
eofs
pe
c
i
al
i
za
t
i
ont
oac
hi
e
vee
c
onomi
e
sofs
c
al
ei
soner
e
as
onmode
r
ns
oc
i
e
t
i
e
sar
easpr
os
pe
r
ousast
he
yar
e
.
ANSWER:
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CULTY:2SECTI
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.
4
36. Asafir
m move
sal
ongi
t
sl
ongr
una
ve
r
a
gec
os
tc
ur
ve
,i
ti
sadj
us
t
i
ngt
hes
i
zeofi
t
sf
ac
t
or
yt
ot
hequant
i
t
yof
pr
oduc
t
i
on.
ANSWER:
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CULTY:2SECTI
ON:13
.
4
37. Be
c
aus
eoft
hegr
e
a
t
e
rfle
xi
bi
l
i
t
yt
ha
tfir
msha
vei
nt
hel
ongr
un,
s
hor
t
r
unc
os
tc
ur
ve
sl
i
eonorabovet
hel
ongr
unc
ur
ve
.
ANSWER:
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.
4
al
l
38. The
r
ei
sge
ne
r
ala
gr
e
e
me
ntamonge
c
onomi
s
t
st
ha
tt
hel
ongr
un
pe
r
i
ode
x
c
e
e
dsoneye
ar
.
ANSWER:
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ON:13
.
4
t
i
me
39. Adam Smi
t
h'
se
xampl
eoft
hepi
nf
ac
t
or
yde
mons
t
r
a
t
e
st
ha
t
e
c
onomi
e
sofs
c
al
er
e
s
ul
tf
r
om s
pe
c
i
al
i
za
t
i
on.
ANSWER:
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ON:13
.
4
SHORTANSWER
1. Wha
tar
eoppor
t
uni
t
yc
os
t
s
?How doe
xpl
i
c
i
tandi
mpl
i
c
i
tc
os
t
sr
e
l
a
t
et
ooppor
t
uni
t
yc
os
t
s
?
ANSWER:
Theoppor
t
uni
t
yc
os
tofani
t
e
mr
e
f
e
r
st
oal
lt
hos
et
hi
ngst
ha
tmus
tbef
or
gonet
oac
qui
r
et
ha
ti
t
e
m.Bot
he
xpl
i
c
i
t
andi
mpl
i
c
i
tc
os
t
sar
ei
nc
l
ude
dasoppor
t
uni
t
yc
os
t
s
.
TYPE:
SDI
FFI
CULTY:2SECTI
ON:13.
1
2.
A ke
ydi
ffe
r
e
nc
ebe
t
we
e
nac
c
ount
ant
sande
c
onomi
s
t
si
st
he
i
rdi
ffe
r
e
ntt
r
e
a
t
me
ntoft
hec
os
tofc
api
t
al
.Doe
st
hi
s
c
aus
eanac
c
ount
ant
’
se
s
t
i
ma
t
eoft
ot
alc
os
t
st
obehi
ghe
rorl
owe
rt
hanane
c
onomi
s
t
’
se
s
t
i
ma
t
e
?Expl
ai
n.
ANSWER:
Anac
c
ount
antwoul
dnoti
nc
l
udet
hef
or
gonei
nt
e
r
e
s
ti
nc
omet
ha
tt
hemone
yc
oul
dha
vee
ar
ne
de
l
s
e
whe
r
ei
fi
t
hadnotbe
e
ni
nve
s
t
e
di
nt
hebus
i
ne
s
s
.The
r
e
f
or
e
,a
nac
c
ount
ant
’
se
s
t
i
ma
t
eoft
ot
alc
os
twi
l
lbel
e
s
st
hanan
e
c
onomi
s
t
’
s
.
TYPE:
SDI
FFI
CULTY:2SECTI
ON:13.
1
3.
Thepr
oduc
t
i
onf
unc
t
i
onde
pi
c
t
sar
e
l
a
t
i
ons
hi
pbe
t
we
e
nwhi
c
ht
wovar
i
abl
e
s
?Al
s
o,dr
a
w apr
oduc
t
i
onf
unc
t
i
ont
ha
t
e
xhi
bi
t
sdi
mi
ni
s
hi
ngmar
gi
nalpr
oduc
t
.
ANSWER:
I
tde
pi
c
t
sar
e
l
a
t
i
ons
hi
pbe
t
we
e
nout
putandagi
ve
ni
nput
.
Thegr
aphs
houl
ds
how out
puti
nc
r
e
as
i
ng,buta
ta
de
c
r
e
as
i
ngr
a
t
easi
nput
si
nc
r
e
as
e
.
TYPE:
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CULTY:2SECTI
ON:13.
2
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Chapter 13 /The Costs of Production  406
4.
How woul
dapr
oduc
t
i
onf
unc
t
i
ont
ha
te
xhi
bi
t
sde
c
r
e
as
i
ngmar
gi
nalpr
oduc
taffe
c
tt
hes
hapeoft
het
ot
alc
os
tc
ur
ve
?
Expl
ai
nordr
a
w agr
aph.
ANSWER:
Thet
ot
alc
os
tc
ur
vewi
l
li
nc
r
e
as
ea
tani
nc
r
e
as
i
ngr
a
t
e
,ori
not
he
rwor
ds
,
t
het
ot
alc
os
tc
ur
vege
t
ss
t
e
e
pe
rast
he
amountpr
oduc
e
dr
i
s
e
s
.
TYPE:
SDI
FFI
CULTY:2SECTI
ON:13.
3
5. Wha
te
ffe
c
t
,
i
fa
ny
,doe
sdi
mi
ni
s
hi
ngmar
gi
nalpr
oduc
tha
veont
hes
hapeoft
hemar
gi
nalc
os
tc
ur
ve
?
ANSWER:
Di
mi
ni
s
hi
ngmar
gi
nalpr
oduc
tc
aus
e
st
hemar
gi
nalc
os
tc
ur
vet
or
i
s
e
.
TYPE:
SDI
FFI
CULTY:2SECTI
ON:13.
3
6.
BobEdwar
dsownsaba
ge
ls
hop.Bobhi
r
e
sane
c
onomi
s
twhoas
s
e
s
s
e
st
hes
hapeoft
heba
ge
ls
hop’
sa
ve
r
a
get
ot
alc
os
t
(
ATC)c
ur
veasaf
unc
t
i
onoft
henumbe
rofba
ge
l
spr
oduc
e
d.
Ther
e
s
ul
t
si
ndi
c
a
t
eaUs
hape
da
ve
r
a
get
ot
alc
os
tc
ur
ve
.
Bob’
se
c
onomi
s
te
xpl
ai
nst
ha
tATCi
sUs
hape
df
ort
wor
e
as
ons
.Thefir
s
ti
st
hee
xi
s
t
e
nc
eofdi
mi
ni
s
hi
ngmar
gi
nal
pr
oduc
t
,
whi
c
hc
aus
e
si
tt
or
i
s
e
.
Wha
twoul
dbet
hes
e
c
ondr
e
as
on?As
s
umet
ha
tt
hemar
gi
nalc
os
tc
ur
vei
sl
i
ne
ar
.
(
Hi
nt
:Thes
e
c
ondr
e
as
onr
e
l
a
t
e
st
oa
ve
r
a
gefix
e
dc
os
t
)
ANSWER:
Ave
r
a
gefix
e
dc
os
tal
wa
ysde
c
l
i
ne
sasout
putr
i
s
e
sbe
c
aus
efix
e
dc
os
ti
sbe
i
ngs
pr
e
adove
ral
ar
ge
rnumbe
rof
uni
t
s
,t
husc
aus
i
ngt
hea
ve
r
a
get
ot
alc
os
tc
ur
vet
of
al
l
.
TYPE:
SDI
FFI
CULTY:3SECTI
ON:13.
3
7.
I
ft
hea
ve
r
a
get
ot
alc
os
tc
ur
vei
sf
al
l
i
ng,wha
ti
sne
c
e
s
s
ar
i
l
yt
r
ueoft
hemar
gi
nalc
os
tc
ur
ve
?I
ft
hea
ve
r
a
get
ot
alc
os
t
c
ur
vei
sr
i
s
i
ng,wha
ti
sne
c
e
s
s
ar
i
l
yt
r
ueoft
hemar
gi
nalc
os
tc
ur
ve
?
ANSWER:
Whe
na
ve
r
a
get
ot
alc
os
tc
ur
vei
sf
al
l
i
ngi
ti
sne
c
e
s
s
ar
i
l
yabovet
hemar
gi
nalc
os
tc
ur
ve
.I
ft
hea
ve
r
a
get
ot
alc
os
t
c
ur
vei
sr
i
s
i
ng,i
ti
sne
c
e
s
s
ar
i
l
ybe
l
ow t
hemar
gi
nalc
os
tc
ur
ve
.
TYPE:
SDI
FFI
CULTY:2SECTI
ON:13.
3
8.
Ac
c
or
di
ngt
ot
hema
t
he
ma
t
i
c
all
a
wst
ha
tgove
r
nt
her
e
l
a
t
i
ons
hi
pbe
t
we
e
na
ve
r
a
get
ot
alc
os
tandmar
gi
nalc
os
t
,
whe
r
e
mus
tt
he
s
et
woc
ur
ve
si
nt
e
r
s
e
c
t
?
ANSWER:
Thet
woc
ur
ve
swi
l
lc
r
os
sa
tt
hemi
ni
mum poi
ntont
hea
ve
r
a
get
ot
alc
os
tc
ur
ve
.
TYPE:
SDI
FFI
CULTY:2SECTI
ON:13.
3
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