Which Of The Following Is Most Likely To Represent A Fixed Cost Of A Firm?

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Multiple option questions

Chapter four: Section iv.1

Affiliate iv: Section 4.1

These interactive self-cess questions, will enable you to assess your understanding of the cadre material covered in Chapter 4, Section 4.1 of Essential Economic science for Business, 5th edition.

Afterwards you take clicked on your choice of answer to each question, you can submit your answers for instant automatic marking and feedback.

This activeness contains xix questions.

Opportunity costs are those which:

	are measured in terms of the best alternative forgone.
	practise not involve payment, but do involve a sacrifice for the firm.
	are incurred to ensure that the firm retains flexibility.
	involve payments outside the firm.

A florist buys some flowers for £8 per bunch and prices them at £12. Some are sold, simply the remainder have reached their 'sell-by' engagement. The florist reduces their toll to £i, which is necessary to ensure that they are sold. When reducing the price, what is the opportunity cost of these remaining flowers to the florist?

	£8
	£12
	Zero
	£one

Explicit costs are those which:

	involve payments outside the business firm.
	are incurred to ensure that the house retains flexibility.
	are measured in terms of the best alternative forgone.
	do not involve payment, just exercise involve a cede for the firm.

Implicit costs are those which:

	are incurred to ensure that the firm retains flexibility.
	are measured in terms of the next best alternative foregone.
	involve payments outside the business firm.
	practise non involve payment, but do involve a cede for the business firm.

Presume that a firm already owns a machine that has a total life of 10 years. The cost of using the car for one year to produce skilful A is:

	The chip value of the machine at the cease of its life.
	The value of i year's output of adept A.
	a tenth of what the firm paid for the machine in the commencement identify.
	the maximum the motorcar could take earned for the firm in some culling utilise during the year in question.

The short run, every bit economists use the phrase, is characterised by:

	no variable inputs - that is all of the factors of production are fixed.
	at least 1 fixed cistron of product and firms neither leaving nor entering the industry.
	all inputs existence variable.
	a period where the law of diminishing returns does not concur.

Which of the post-obit is most likely to be a variable cost for a business firm?

	The monthly rent on part space that information technology leased for a year.
	The payroll taxes that are paid on employee wages.
	The interest payments fabricated on loans.
	The franchiser's fee that a eatery must pay to the national restaurant concatenation.

The costs that depend on output in the short run are:

	Total costs only.
	Total stock-still cost merely.
	Both total variable costs and total costs.
	Full variable costs only.

Which statement is Fake?

	Fixed costs are zero if the house is producing aught.
	At that place are no stock-still costs in the long run.
	Fixed costs practise not depend on the firm's level of output.
	Stock-still costs are the difference between total costs and total variable costs.

A firm's output is 100 units, its marginal cost is £50, its average variable cost is as well £50 and its average fixed price if £25. The slope of its average variable cost is:

	Infinity
	Negative
	Between 0 and 0.5
	Zilch

The formula for boilerplate stock-still costs is:

	TFC/Q
	Q/TFC
	TFC - Q
	TFC × Q

The formula for AVC is:

	Q - TVC
	TVC - Q
	Q/TVC
	TVC/Q

The post-obit diagram shows four curves for house Z.

Which curve is shown by letter A?

	Average stock-still costs
	Average total cost
	Marginal price
	Average variable costs

The following diagram shows four curves for business firm Z.

Which curve is shown by letter B?

	Average variable costs
	Boilerplate fixed costs
	Marginal price
	Average full cost

The following diagram shows 4 curves for firm Z.

Which curve is shown by alphabetic character C?

	Average fixed costs
	Average total price
	Marginal cost
	Average variable costs

The post-obit diagram shows four curves for firm Z.

Which curve is shown by letter D?

	Average fixed costs
	Average full toll
	Marginal toll
	Boilerplate variable costs

Diminishing marginal returns implies:

	increasing marginal costs.
	decreasing average variable costs.
	decreasing average fixed costs.
	decreasing marginal costs.

The following diagram shows firm X's short-run price curves. The firm is producing at OQ.

What does the expanse ObcQ represent?

	Total costs (TC).
	Total variable costs (TVC).
	The sum of MC at Q.
	Average cost (Air-conditioning).
	Average stock-still costs (AFC).

If the marginal price is beneath the average cost, then:

	The average cost must be falling
	The marginal cost must be falling
	The marginal cost must be rising
	The average toll must be rising