Assume the following cost information about Fred's widget company: Its fixed cost is 27, and its total variable cost is 18 for 1 unit; 33 for 2; 45 for 3; 60 for 4; and 78 for 5 . Given this information:
a. average fixed cost rises from an output of four to an output of five.
b. average fixed cost is greater than marginal cost for the second unit produced.
c. the output level which minimizes average total cost is four units.
d. average variable cost rises, but average total cost falls, as output increases from four to five.
QUESTION 2A primary market refers to a market in which outstanding shares are bought and sold.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Which of the following products should be sold face-to-face rather than by mass advertising?
a. Breakfast cereals
b. Health drinks
c. A pharmaceutical which can only be understood by doctors
d. A new brand of herbal cosmetics
QUESTION 4In order to have a meaningful measure of marginal utility, we must define the time period during which consumption is occurring.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5Assume the following cost information about Fred's widget company: Its fixed cost is 27, and its total variable cost is 18 for 1 unit; 33 for 2; 45 for 3; 60 for 4; and 78 for 5 . Given this information:
a. the marginal cost of providing the second unit is 15.
b. the total cost of producing 4 units is 87.
c. the average total cost of producing five units is 21.
d. all of the above are true.
QUESTION 6The demand curve for the shares of a company's stock slopes upward, since the higher the price of the stock, everything else remaining the same, the higher the quantity of stock demanded.
a. True
b. False
Indicate whether the statement is true or false
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