For the cost function C(Q) = 200 + 3Q + 8Q2 + 4Q3, what is the average fixed cost of producing six units of output?
  • 33.33

For the cost function C(Q) = 1000 + 14Q + 9Q2 + 3Q3, what is the marginal cost of producing the fourth unit of output?

  • $230
What is implied when the total cost of producing Q1 and Q2 together is less than the total cost of producing Q1 and Q2 separately?
  • Economies of scope
Which curve(s) does the marginal cost curve intersect at the (their) minimum point?
  • Average total cost curve and average variable cost curve

Suppose you are a manager of a factory. You purchase five (5) new machines at one million dollars each. If you can resell two of the machines for $500,000 and three of the machines for $200,000, what are the sunk costs of purchasing the machines?

  • $3.4 million

In order to minimize the cost of producing a given level of output, a firm manager should use more inputs when:

  • Its price falls
Which of the following sets of economic data is minimizing the cost of producing a given level of output?
  • MPL = 20, MPK = 40, w = $16, r = $32
In order for isoquants to have a diminishing marginal rate of substitution they must be:
  • None of the statements associated with this question are correct