1- a computer system in an office is an example of: a- labor b- capital c- land
ID: 1162312 • Letter: 1
Question
1- a computer system in an office is an example of:
a- labor
b- capital
c- land
d- all of the above
e- none of the above
2- the lowest point on the average total cost curve is:
a- where it intersects the average fixed cost curve
b- where it intersects the marginal cost curve
c- where it intersects the average variable cost curve
d- all of the above
e- none of the above
3- assume that coca-cola and pepsi-cola are substitutes. a fall in the price of coca-cola will have which of the following effects on the market for pepsi?
a- a movement down along the pepsi demand curve
b- a rightward shift in the pepsi demand curve
c- a movement up along the pepsi demand curve
d- a leftward shift in the pepsi demand curve
4- which of the following statements is true?
a- TC = TFC - TVC
b- AVC = ATC + AFC
c- AFC = ATC / Q
d- MC equals the change in ATC divided by the change in Q
e- all of the above
f- none of the above
Explanation / Answer
1. B) capital.
Because when a company uses a computer for its own use and not for selling, it is considered an asset for the company and is a part of the capital.
2. B) when it intersects the marginal cost curve.
Because, initially atc falls when the fixed factors are not fully utilised in short run, but then it is used effeciently and the average cost achieve its minimum where mc intersects it. After that mc rises at a very fast rate and pulls atc upwards.
3. D) a leftward shift in the pepsi demand curve.
Because, pepsi and coca-cola are perfect substitutes of each other and when the price of one will decrease(coca-cola) the demand for pepsi will fall as they are directly related. The consumers will go for coca-cola instead of pepsi as they are substitutes and coca-cola is availble at a relatively less price. Price and other factors remain constant(assumption).
4. F) none of the above.
All the formulas are incorrect and are hence false.
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