Question 1 Assume that the cost of producing T-shirts is given by TC=100 + 3q+q2. Which of the following is true at all levels of production? AnswerMC=AFC MC=ATC MC=AVC AFC is constant. None of the above are true. 1 points Question 2 Assume that the cost of producing T-shirts is given by TC=30 + 2q. The average total cost of producing when producing 6 shirts is equal to: Answer 2. 7. 12. 36. 42. 1 points Question 3 In the short run, for a single firm in perfect competition, the point at which diminishing marginal returns begins is the point at which the marginal cost curve: Answer Is highest. Is a minimum. Is upward sloping. Is downward sloping. None of the above as diminishing marginal returns refers to marginal physical product. 1 points Question 4 Assume that a competitive firm maximises short run profits by producing a positive quantity of output. Which of the following is true at that level of output: Answerp=MC MR=MC p=AVC Both a and b are correct a, b, c are all correct Question 5
Consider the cost curves for a competitive firm in the diagram below. At which of the following prices will the firm produce in the short run but shut down in the long run? Answer $0. $4. $8. $10. $11. 1 points Question 6 A competitive industry currently consists of N= 20 identical firms. An individual firm’s total cost function is given by TC = 0.5q2 + 200. Market demand is given by Q = 4000-5P. In the short run, how much will each firm produce in the equilibrium? Answer q = 160 q = 200 q ~ 666 q = 3200 None of the above 1 points Question 7 A competitive industry currently consists of N= 20 identical firms. An individual firm’s total cost function is given by TC = 0.5q2 + 200. Market demand is given by Q = 4000-5P. In the long run, how much will each firm produce in equilibrium? Answer
q = 0 q =8 q = 20 q = 200 None of the above 1 points Question 8 Consider a competitive where each firm’s total cost function is given by TC = 0.5q2 + 200. Market demand is given by Q = 4000-5P. In…