Question: 62) If a firm produces 20 units of output and incurs a total cost of $1,000 and a variable cost is $700,
calculate the firm's average fixed cost of production if it expands output to 25 units.
D) It is impossible to determine without additional information.
63) If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm's total
variable cost at that level of output is
D) impossible to determine without additional information.
64) If production displays economies of scale, the long run average cost curve is 64)
A) below the long run marginal cost curve.
C) upward sloping.
D) above the short run average total cost curve.
65) Consider this quote, "Perfect Competition in the Market for Organic Apples": Between 1997 and
2001, many apple farmers switched from traditional to organic growing methods, increasing
production of organically grown apples from 1.2 million boxes per year to more than 3 million
boxes. If the market for organic apples is perfectly competitive, which of the following statements
is inconsistent with the statement above?
A) The market supply curve for organic apples shifts to the right.
B) Organic apple farmers are earning short run economic profits.
C) The price of organic apples is likely to rise over time as more and more farmers switch to
organic methods of farming.
D) It is relatively easy to enter the organic apples market.
66) The price of a seller's product in perfect competition is determined by 66)
A) the individual seller. B) a few of the sellers.
C) the individual demander. D) market demand and market supply.
Answer: I will answer a few for your help.
66) D Edit
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