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OC. tangent to the maximum O D. to the left of the minimum QUESTION 2 Table: Cos

ID: 1121730 • Letter: O

Question

OC. tangent to the maximum O D. to the left of the minimum QUESTION 2 Table: Costs of Producing Bagels Quantity of Bagels (per period) Total Variable Costs $0.00 0.20 0.30 0.35 0.45 0.60 0.80 1.05 1.35 Total Fixed Costs 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 2 Reference: Ref 11-24 (Table: Costs of Producing Bagels) Look at the table Cost of Producing Bagels. The marginal cost of producing the second bagel is OA, $0.30. O B.$0.10. Oc, $0.05. D. $0.40, QUESTION 3 A factor of production whose quanty can be changed during the SHORT run is al) factr of production. O A. fixed OB. marginal C. incremental D. variable

Explanation / Answer

2) Marginal cost is the addition to the total cost. Total cost of producing two bagels is sumof fixed and variable cost = 0.40. While total cost of furst unit of bagel is 0.30.

Mc= (0.40-0.30)/1 = 0.10

Answer is A

3) The factor of production whose quantity can be changed in short run is referred to as Varsha factor of production. The answer is D.