Question 1
Refer to the information provided in Table 8.3 below to answer the question(s) that follow.
Refer to Table 8.3. The marginal cost of the fourth unit is ________ and the average total cost of four units is ________.
◦ $10; $30
◦ $20; $45
◦ $30; $35
◦ indeterminate from the given information
Question 2
Refer to the information provided in Table 8.3 below to answer the question(s) that follow.
Refer to Table 8.3. From the information in the given table
◦ the firm is in the long run.
◦ the firm eventually experiences diminishing returns to its variable input.
◦ the marginal cost curve intersects the average total cost curve between 3 and 4 units of output.
◦ the difference between total cost and total variable cost decreases as output increases.
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