What is the marginal cost of producing the fifth unit?

Suppose that the total fixed cost of producing five sailboats is $4000 total variable c Show more QUESTION 6 Suppose that the total fixed cost of producing five sailboats is $4000 total variable cost is $4000 and the total cost of producing six sailboats is $10000. The marginal cost of the sixth sailboat is: a) 6000 b) 10000 c) 8000 d) 4000 e) 2000 QUESTION 8 The following table shows the cost of producing different units of ball point pens by a firm. Table 8.1 Total Output Total Cost 0 10 1 12 2 14 3 18 4 24 5 30 Refer to Table 8.1. What is the marginal cost of producing the fifth unit? a) 6 b) 4 c) 10 d) 2 e) 8 QUESTION 9 For a steel manufacturing firm overhead costs would include: a. cost of electricity for running the machines in the factory. b. insurance premiums of the firm. c. wages of the workers. d. cost of iron ore. e. cost incurred in buying blast furnaces. QUESTION 10 In the short run when output is zero total cost is: a. greater than total fixed cost. b. less than total variable cost. c. less than total fixed cost. d. equal to total variable cost. e. equal to total fixed cost. QUESTION 11 In the long run a. all resources are fixed. b. some resources are variable and some resources are fixed. c. all the resources can be varied. d. at least one resource is fixed. e. there are no explicit costs. QUESTION 12 In the oil tanker industry large companies have lower risk and are able to optimize vessel utilization. If consolidation allows companies to lower their long-run average total costs this is an example of: a. the increase in utility of managers by being able to control larger companies. b. the economies of scale in the oil tanker industry. c. the opportunity costs of mergers. d. the law of diminishing returns. Show less

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