978-1319066604 Chapter 11 Part 3

Page 41

177.

(Figure: Short-Run Costs II) Use Figure: Short-Run Costs II. At 6 units of output,

marginal cost is approximately:

A)

$100.

B)

$120.

C)

$250.

D)

$200.

178.

(Figure: Short-Run Costs II) Use Figure: Short-Run Costs II. At 6 units of output,

average total cost is approximately:

A)

$100.

B)

$120.

C)

$170.

D)

$250.

179.

(Figure: Short-Run Costs II) Use Figure: Short-Run Costs II. At 6 units of output,

average variable cost is approximately:

A)

$100.

B)

$120.

C)

$200.

D)

$250.

Use the following to answer questions 180-193:

Page 42

180.

(Table: Cost Data) Use Table: Cost Data. When the purse factory produces 5 units of

output (purses):

A)

marginal cost is above average total cost, and average total cost is rising.

B)

average total cost is above average variable cost, and average variable cost is

falling.

C)

marginal cost is below average variable cost, and average variable cost is falling.

D)

marginal cost is above average variable cost and below average total cost, and

average total cost is rising.

181.

(Table: Cost Data) Use Table: Cost Data. The average variable cost of producing 2

purses is:

A)

$190.

B)

$70.

C)

$50.

D)

$35.

182.

(Table: Cost Data) Use Table: Cost Data. The average fixed cost of producing 2 purses

is:

A)

$0.

B)

$50.

C)

$25.

D)

$2.

183.

(Table: Cost Data) Use Table: Cost Data. The average total cost of producing 2 purses

is:

A)

$60.

B)

$120.

C)

$190.

D)

$220.

184.

(Table: Cost Data) Use Table: Cost Data. The marginal cost of producing the second

purse is:

A)

$60.

B)

$50.

C)

$35.

D)

$20.

Page 43

185.

(Table: Cost Data) Use Table: Cost Data. The average variable cost of producing 4

purses is:

A)

$190.00.

B)

$140.00.

C)

$47.50.

D)

$35.00.

186.

(Table: Cost Data) Use Table: Cost Data. The average fixed cost of producing 4 purses

is:

A)

$12.50.

B)

$47.50.

C)

$50.00.

D)

$82.50.

187.

(Table: Cost Data) Use Table: Cost Data. The average total cost of producing 4 purses

is:

A)

$12.50.

B)

$47.50.

C)

$50.00.

D)

$82.50.

188.

(Table: Cost Data) Use Table: Cost Data. The marginal cost of producing the fourth

purse is:

A)

$60.

B)

$50.

C)

$40.

D)

$20.

189.

(Table: Cost Data) Use Table: Cost Data. The average total cost of producing 6 purses

is:

A)

$190.

B)

$70.

C)

$50.

D)

$35.

Page 44

190.

(Table: Cost Data) Use Table: Cost Data. The average fixed cost of producing 5 purses

is:

A)

$0.

B)

$50.

C)

$25.

D)

$10.

191.

(Table: Cost Data) Use Table: Cost Data. The average variable cost of producing 5

purses is:

A)

$10.

B)

$38.

C)

$48.

D)

$190.

192.

(Table: Cost Data) Use Table: Cost Data. The average total cost of producing 5 purses

is:

A)

$10.

B)

$38.

C)

$48.

D)

$240.

193.

(Table: Cost Data) Use Table: Cost Data. The marginal cost of producing the fifth purse

is:

A)

$60.

B)

$50.

C)

$35.

D)

$20.

Use the following to answer questions 194-196:

Page 45

194.

(Figure: A Firm’s Cost Curves) Use Figure: A Firm’s Cost Curves. The curve labeled V

represents the firm’s _____ cost curve.

A)

total

B)

average total

C)

marginal

D)

average variable

195.

(Figure: A Firm’s Cost Curves) Use Figure: A Firm’s Cost Curves. The curve labeled W

represents the firm’s _____ cost curve.

A)

average fixed

B)

average total

C)

average variable

D)

total variable

196.

(Figure: A Firm’s Cost Curves) Use Figure: A Firm’s Cost Curves. The curve X

represents the firm’s _____ cost curve.

A)

marginal

B)

average total

C)

average fixed

D)

average variable

197.

The long-run average total cost curve is tangent to an infinite number of short-run _____

cost curves.

A)

total

B)

marginal

C)

average variable

D)

average total

198.

Where the long-run average total cost curve is at its lowest point, it is tangent to the

_____ of the corresponding short-run average total cost curve.

A)

minimum

B)

maximum

C)

right of the minimum

D)

left of the minimum

199.

At quantities less than the long-run minimum cost per unit of output, the long-run

average total cost curve is _____ of the corresponding short-run average total cost

curve.

A)

tangent to the minimum

B)

tangent to the maximum

C)

to the right of the minimum

D)

to the left of the minimum

200.

At quantities greater than the long-run minimum cost per unit of output, the long-run

average total cost curve is _____ of the corresponding short-run average total cost

curve.

A)

tangent to the minimum

B)

tangent to the maximum

C)

to the right of the minimum

D)

to the left of the minimum

201.

(Figure: Long-Run and Short-Run Average Cost Curves) Use Figure: Long-Run and

Short-Run Average Cost Curves. If a firm faced the long-run average total cost curve

shown in the figure and it expected to produce 100,000 units of the good in the long run,

the firm should build the plant associated with:

Ref 11-18 Figure: Long-Run and Short-Run Average Cost Curves

A)

ATC1.

B)

ATC2.

C)

ATC3.

D)

ATC1 or ATC2.

202.

(Figure: Long-Run and Short-Run Average Cost Curves) Use Figure: Long-Run and

Short-Run Average Cost Curves. If a firm is producing at point C on the ATC2 but

anticipates increasing output to 225,000 units in the long run, the firm will build a

_____ plant and have _____ of scale.

A)

smaller; economies

B)

smaller; diseconomies

C)

bigger; economies

D)

bigger; diseconomies

203.

In the long run, all costs are:

A)

fixed.

B)

constant.

C)

variable.

D)

marginal.

Page 47

204.

In the long run:

A)

all factors are fixed.

B)

all factors are variable.

C)

production choices are more limited than in the short run.

D)

production is always greater than zero.

205.

When a firm adds physical capital, in the short run fixed costs will:

A)

increase.

B)

decrease.

C)

remain the same.

D)

decrease at first and then increase.

206.

When a firm adds capital, in the short run workers will be:

A)

less productive and let the machines do most of the work.

B)

more productive, since they have more equipment.

C)

at the same level of productivity.

D)

more productive at first and then less productive after a few weeks.

207.

When a firm adds capital, in the short run variable costs for any level of output will:

A)

increase.

B)

decrease.

C)

remain the same.

D)

increase at first and then decrease.

Use the following to answer questions 208-234:

Page 48

208.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 1 mixer and bakes 100 cakes per day, what is her average fixed cost?

A)

$10,000

B)

$1,000

C)

$15

D)

$10

209.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 1 mixer and bakes 100 cakes per day, what is her average total cost?

A)

$1,010

B)

$20

C)

$15

D)

$10

210.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 1 mixer and bakes 200 cakes per day, what is her average fixed cost?

A)

$5

B)

$10

C)

$200

D)

$1,000

211.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 1 mixer and bakes 200 cakes per day, what is her average total cost?

A)

$5

B)

$15

C)

$200

D)

$1,000

212.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 1 mixer and bakes 400 cakes per day, what is her average fixed cost?

A)

$0.025

B)

$2.50

C)

$1,000

D)

$400,000

213.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 1 mixer and bakes 400 cakes per day, what is her average total cost?

A)

$2.50

B)

$10

C)

$12.50

D)

$1,010

214.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 1 mixer, her average fixed cost _____ in the range of output between 100 and

400 cakes.

A)

increases

B)

decreases

C)

remains the same

D)

can’t be calculated

215.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 1 mixer, her average total cost _____ in the range of output between 100 and

400 cakes.

A)

increases

B)

decreases

C)

remains the same

D)

can’t be calculated

Page 50

216.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 2 mixers and bakes 100 cakes per day, what is her average fixed cost?

A)

$10,000

B)

$1,000

C)

$15

D)

$10

217.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 2 mixers and bakes 100 cakes per day, what is her average total cost?

A)

$8

B)

$10

C)

$15

D)

$22

218.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 2 mixers and bakes 200 cakes per day, what is her average fixed cost?

A)

$300,000

B)

$1,508

C)

$187.50

D)

$7.50

219.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 2 mixers and bakes 200 cakes per day, what is her average total cost?

A)

$8

B)

$14.50

C)

$1,492

D)

$1,508

Page 51

220.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 2 mixers and bakes 400 cakes per day, what is her average fixed cost?

A)

$0.02

B)

$3.75

C)

$500

D)

$1,508

221.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 2 mixers and bakes 400 cakes per day, what is her average total cost?

A)

$0.02

B)

$10.75

C)

$500

D)

$1,507

222.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 2 mixers, her average fixed cost _____ in the range of output between 100

and 400 cakes.

A)

increases

B)

decreases

C)

remains the same

D)

can’t be calculated

223.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 2 mixers, her average total cost _____ in the range of output between 100 and

400 cakes.

A)

increases

B)

decreases

C)

remains the same

D)

can’t be calculated

Page 52

224.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 3 mixers and bakes 100 cakes per day, what is her average fixed cost?

A)

$4

B)

$25

C)

$2,496

D)

$10,000

225.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 3 mixers and bakes 100 cakes per day, what is her average total cost?

A)

$4

B)

$25

C)

$29

D)

$625

226.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 3 mixers and bakes 200 cakes per day, what is her average fixed cost?

A)

$0.05

B)

$2.50

C)

$5.00

D)

$12.50

227.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 3 mixers and bakes 200 cakes per day, what is her average total cost?

A)

$50.00

B)

$12.50

C)

$16.50

D)

$800.00

Page 53

228.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 3 mixers and bakes 400 cakes per day, what is her average fixed cost?

A)

$0.05

B)

$2.50

C)

$5.00

D)

$6.25

229.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 3 mixers and bakes 400 cakes per day, what is her average total cost?

A)

$10.25

B)

$12.50

C)

$16.50

D)

$2,504.00

230.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 3 mixers, her average fixed cost _____ in the range of output between 100

and 400 cakes.

A)

increases

B)

decreases

C)

remains the same

D)

can’t be calculated

231.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. If Pat

purchases 3 mixers, her average total cost _____ in the range of output between 100 and

400 cakes.

A)

increases

B)

decreases

C)

remains the same

D)

can’t be calculated

Page 54

232.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. How

many mixers should Pat buy to get the lowest average total cost if she plans to make 100

cakes?

A)

1

B)

2

C)

3

D)

Can’t be determined without more information

233.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. How

many mixers should Pat buy to get the lowest average total cost if she plans to make 200

cakes?

A)

1

B)

2

C)

3

D)

Can’t be determined without more information

234.

(Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special

birthday cakes. She is trying to decide how many mixers to purchase. Her estimated

fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the

table. Assume that average variable costs do not vary with the quantity of output. How

many mixers should Pat buy to get the lowest average total cost if she plans to make 400

cakes?

A)

1

B)

2

C)

3

D)

Can’t be determined without more information

235.

The long-run average cost curve will be upward-sloping when the firm has:

A)

economies of scale.

B)

diseconomies of scale.

C)

constant returns to scale.

D)

diminishing returns.

Page 55

Use the following to answer question 236:

236.

(Table: Long-Run Total Cost) Use Table: Long-Run Total Cost. This soybean grower

receives constant returns to scale over the _____ and _____ bushels.

A)

first; second

B)

third; fourth

C)

fourth; fifth

D)

fifth; sixth

237.

When an increase in the firm’s output reduces its long-run average total cost, it achieves

_____ scale.

A)

economies of

B)

diseconomies of

C)

constant returns to

D)

variable returns to

238.

A university that benefits from lower costs per enrolled student as it builds more

buildings and enrolls more students is an example of a service provider with:

A)

economies of scale.

B)

diseconomies of scale.

C)

increasing opportunity costs.

D)

scale reduction.

239.

The slope of a long-run average total cost curve exhibiting diseconomies of scale is:

A)

zero.

B)

infinite.

C)

positive.

D)

negative.

Page 56

240.

When diseconomies of scale occur:

A)

long-run average cost rises.

B)

marginal cost declines.

C)

average total cost declines.

D)

average variable cost declines.

Use the following to answer questions 241-245:

241.

(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost. This firm has

_____ in the output region from 0 to A.

A)

diseconomies of scale

B)

constant returns to scale

C)

economies of scale

D)

negative costs of production

242.

(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost. This firm has

_____ in the output region from A to B.

A)

constant returns to scale

B)

economies of scale

C)

diseconomies of scale

D)

constant total cost as output increases

243.

(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost. This firm has

_____ in the output region from B to C.

A)

constant returns to scale

B)

diseconomies of scale

C)

economies of scale

D)

falling marginal cost

Page 57

244.

(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost. This firm has

_____ in the output region from 0 to A.

A)

decreasing returns to scale

B)

constant returns to scale

C)

increasing returns to scale

D)

negative costs of production

245.

(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost. This firm has

_____ in the output region from B to C.

A)

constant returns to scale

B)

decreasing returns to scale

C)

increasing returns to scale

D)

falling marginal cost

246.

A firm that is able to use its inputs more efficiently as it increases production in the long

run BEST demonstrates:

A)

economies of scale.

B)

diseconomies of scale.

C)

labor-intensive production.

D)

capital-intensive production.

247.

A firm that has diminishing returns in the management’s ability to use and disseminate

information as it increases production in the long run BEST demonstrates:

A)

economies of scale.

B)

diseconomies of scale.

C)

being too small for the relevant market.

D)

not having enough managers.

248.

It is common in large breweries for the long-run average total cost to decline as output

increases. This indicates that many breweries operate with:

A)

diseconomies of scale.

B)

diminishing marginal returns.

C)

economies of scale.

D)

constant returns to scale.

Page 58

249.

Buffalo Aircraft doubles the amount of all of the inputs it uses—the factory doubles in

size and twice as many workers are hired. After this expansion, the number of aircraft

produced triples. If the price of inputs is unchanged, this means that Buffalo Aircraft is

operating with:

A)

increasing marginal cost.

B)

economies of scale.

C)

increasing average total cost.

D)

decreasing average variable cost.

250.

The long-run average total cost of producing 100 units of output is $4, while the

long-run average cost of producing 110 units of output is $4. These numbers suggest

that between 100 and 110 units of output, the firm producing this output has:

A)

economies of scale.

B)

diseconomies of scale.

C)

constant returns to scale.

D)

diminishing returns.

251.

The -shape of the long-run average total cost curve is primarily due to:

A)

technological change.

B)

economies and diseconomies of scale.

C)

fixed costs.

D)

diminishing returns.

252.

When an increase in the firm’s output reduces its long-run average total cost, it has

_____ returns to scale.

A)

increasing

B)

decreasing

C)

constant

D)

variable

253.

If your firm is operating in the negatively sloped portion of a long-run average total cost

curve, then your production exhibits:

A)

higher wages.

B)

increasing returns to scale.

C)

decreasing returns to scale.

D)

increased input prices.

Page 59

254.

A manufacturing company that benefits from lower costs per unit as it grows is an

example of a firm exhibiting:

A)

increasing returns to scale.

B)

decreasing returns to scale.

C)

increasing opportunity costs.

D)

scale reduction.

255.

A firm that has lower costs per unit as it increases production in the long run has:

A)

increasing returns to scale.

B)

decreasing returns to scale.

C)

increasing opportunity costs.

D)

scale reduction.

256.

The slope of a long-run average total cost curve exhibiting decreasing returns to scale is:

A)

zero.

B)

infinite.

C)

positive.

D)

negative.

257.

Decreasing and increasing returns to scale account for the shape of the:

A)

short-run average total cost curve.

B)

short-run average variable cost curve.

C)

long-run average total cost curve.

D)

marginal cost curve in both the short run and the long run.

258.

The slope of a long-run average total cost curve exhibiting increasing returns to scale is:

A)

zero.

B)

infinite.

C)

positive.

D)

negative.

Page 60

Use the following to answer questions 259-266:

259.

(Table: Workers and Output) Use Table: Workers and Output. After graduation, you

achieve your dream of opening an art shop that specializes in selling mud statues. You

pay $10 per day on a loan from your uncle, regardless of how much you produce. You

also pay $10 per day to each of the workers who you hire to make the mud statues. The

fixed cost of producing 25 statues is:

A)

$10.

B)

$20.

C)

$25.

D)

$35.

260.

(Table: Workers and Output) Use Table: Workers and Output. After graduation, you

achieve your dream of opening an art shop that specializes in selling mud statues. You

pay $10 per day on a loan from your uncle, regardless of how much you produce. You

also pay $10 per day to each of the workers who you hire to make the mud statues. The

variable cost of producing 25 statues is:

A)

$10.

B)

$20.

C)

$25.

D)

$35.

261.

(Table: Workers and Output) Use Table: Workers and Output. After graduation, you

achieve your dream of opening an art shop that specializes in selling mud statues. You

pay $10 per day on a loan from your uncle, regardless of how much you produce. You

also pay $10 per day to each of the workers who you hire to make the mud statues. The

total cost of producing 25 statues is:

A)

$10.

B)

$20.

C)

$25.

D)

$30.