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Cost Functions & Curves Quiz

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Cost Functions & Curves Quiz

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Cost concepts quiz

Created by

UNIT KEPIMPINAN PELAJAR UiTM PAHANG
UNIT KEPIMPINAN PELAJAR UiTM PAHANG
Malaysia

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Cost Functions & Curves Quiz
 

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Cost Functions & Curves QuizOnline version

Cost concepts quiz

by UNIT KEPIMPINAN PELAJAR UiTM PAHANG
1

What is the standard formula for total cost (TC)?

2

How is marginal cost (MC) defined?

3

Fixed costs are costs that do what with output in the short run?

4

Average total cost (ATC) equals what?

5

When should a firm shut down in the short run?

6

What tends to happen to long-run average cost when there are increasing returns to scale?

7

At what point does the MC curve intersect the ATC curve?

8

If MC exceeds MR for a firm, what should it do to maximize profit?

9

Which of the following is a true example of fixed cost?

10

Short-run vs long-run cost curves: SR average cost is typically U-shaped; long-run cost curves reflect all inputs being adjustable. True or false?

 
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