Which of the following is the best example of a variable cost? Question 1 option

Question

Which of the following is the best example of a variable cost?

Question 1 options:

Monthly wage payments for hired labor.

Annual property tax payments for a building.

Monthly rent payments for a warehouse.

Annual insurance payments for a warehouse.

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Question 2 (1 point)

Variable cost divided by quantity produced is

Question 2 options:

average total cost.

marginal cost.

profit.

None of the above is correct.

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Question 3 (1 point)

Marginal cost equals

Question 3 options:

total cost divided by quantity of output produced.

total output divided by the change in total cost.

the change in total cost divided by the change in quantity of output.

the slope of the line drawn from the origin to the total cost curve.

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Question 4 (1 point)

At Bert's Bootery, the total cost of producing twenty pairs of boots is $400. The marginal cost of producing the twenty-first pair of boots is $83. We can conclude that the average

Question 4 options:

variable cost of 21 pairs of boots is $23.

total cost of 21 pairs of boots is $23.

total cost of 21 pairs of boots is $15.09.

total cost of 21 pairs of boots cannot be calculated from the information given.

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Question 5 (1 point)

Which of the following costs of publishing a book is a fixed cost?

Question 5 options:

Author royalties of 5% per book.

The costs of paper and binding.

Shipping and postage expenses.

Composition, typesetting, and jacket design for the book.

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Question 6 (1 point)

Which of the following measures of cost is best described as "the increase in total cost that arises from an extra unit of production?"

Question 6 options:

Variable cost

Average variable cost

Average total cost

Marginal cost

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Question 7 (1 point)

Diminishing marginal product suggests that the marginal

Question 7 options:

cost of an extra worker is unchanged.

cost of an extra worker is less than the previous worker's marginal cost.

product of an extra worker is less than the previous worker's marginal product.

product of an extra worker is greater than the previous worker's marginal product.

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Question 8 (1 point)

Given the cost curves shown in the diagram above, the efficient scale of production occurs at point

Question 8 options:

A

B

C

D

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Question 9 (1 point)

Farmer Jack is a watermelon farmer. If Jack plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 30 watermelons. If he plants 2 bags of seeds, he gets 50 watermelons. If he plants 3 bags of seeds he gets 60 watermelons. A bag of seeds costs $100, and the costs of seeds are his only costs. Jack's cost function will

Question 9 options:

Decrease at a decreasing rate.

Decrease at an increasing rate.

Increase at a decreasing rate.

Increase at an increasing rate.

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Question 10 (1 point)

When marginal cost exceeds average total cost,

Question 10 options:

average fixed cost must be rising.

average total cost must be rising.

average total cost must be falling.

marginal cost must be falling.

Monthly wage payments for hired labor.

Annual property tax payments for a building.

Monthly rent payments for a warehouse.

Annual insurance payments for a warehouse.

Explanation / Answer

Ans)

1.

Monthly wage payments for hired labor.
2.

None of the above is correct.
3.

the change in total cost divideb by the change in quantity of output.
4.
The options provided are all wrong
The correct answer is
average total cost of 21 pairs of boots is $23

TC=400+83=483
ATC=483/21=23

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