Test 4-production function PT2.

Question 1

wt happens to a graph when you experience MP & DMP?

Answer 1

MP starts to rise
DMP starts to flat line

Question 2

wt happens to a graph when you experience normal costs & exceeding costs?

Answer 2

Normal costs are flat lining

exceeding costs happens when the curve goes up in an upward straight line.

Question 3

fixed costs

Answer 3

costs that do NOT vary with the quantity of output produced.

Question 4

Variable Costs

Answer 4

costs that vary with the quantity of output produced

Question 5

Average total costs

Answer 5

what is the total cost to produce one unit of production

(the per unit costs of production)

total costs/Q of output

Question 6

average variable costs

Answer 6

the total variable costs per unit of output

VC/Q of output

Question 7

Average fixed costs

Answer 7

total fixed costs per unit of output

FC/Q of output

Question 8

marginal costs

Answer 8

the increase in total cost that arises from an extra unit of production

total cost column- 2nd-1st