Q5. Which of the following most accurately describes the shape of the average fixed cost (AFC) curve? The AFC curve: A) becomes flatter as output increases. B) is always below the average variable cost curve. C) intersects the marginal cost curve at the marginal cost curve’s minimum.
Q6. John Klement is a soybean farmer who harvests 125,000 bushels of soybeans annually. Klement’s fixed costs are $200,000 and his variable costs are $5 per bushel. Soybeans are currently priced at $5.35 per bushel. Based on his estimates, Klement sees soybean prices being relatively stable for the next two years, then increasing to $7.00 per bushel due to increased demand from Japan. What action should Klement take? Klement should: A) cut his production by 50% for the next two years and then resume full production. B) continue operating his business as usual. C) shut down for two years and then restart his business.
Q7. If marginal cost is above the average cost, when you produce your next unit:
A) average cost will decline. B) average cost will be flat. C) average cost will increase.
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发表于 2008-12-31 15:16
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看懂了
