Production and Costs — Practice Set 2

Which of the following is a fixed cost for a bakery in the short run?

Average total cost for a firm equals:

As output rises, average fixed cost:

The marginal cost curve crosses the AVC and ATC curves:

If MC < ATC, then ATC is:

The AVC curve is U-shaped because of:

Sunk costs should be ___ when deciding whether to continue production.

If TFC = $200 and TVC =$800 at Q = 100, ATC equals:

Economic cost differs from accounting cost by including:

In the long run, all costs are: