Multiple choice

1) Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q=50, the total cost is:

A) $2,100.

B) $2,800.

C) $4,500.

D) $6,300.

2) If marginal cost is above average cost, average cost must be rising. 

TRUE 

FALSE?

3) Table 8.3 presents the cost schedule for Candy's Cakes. If Candy produces zero cake, Candy's total costs are:

A) $0.

B) $50.

C) $100.

D) $150

4) Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $24. How many hours should Joe stay open?

A) 3 hours

B) 4 hours

C) 5 hours

D) 6 hours