**1)**

A) Average Variable cost.

B) Marginal Cost

C) Average Fixed Cost

D) Average Total Cost

**2) **If marginal product is 4 units and
average product is 8 units, the next worker will cause

A) Average product to decrease.

B) Marginal product to increase by 2 units and average product to decrease by 2 units.

C) Average product to increase by 4 units.

D) Marginal product to become negative.

E) Marginal product to increase.

**3)**

** **

A) Both a and b are correct.

B) Marginal product decreases.

C) Total output decreases.

D) Marginal product increases but at a decreasing rate.

**4)**

** **

A) Both the production function and total-cost curve are increasing at a decreasing rate.

B) The production function is increasing at an increasing rate, whereas the total-cost function is increasing at a decreasing rate.

C) Both the production function and total-cost curve are increasing at an increasing rate.

D) The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate.

Community Answer

Answer:1) Curve D is ---- B) Marginal CostMarginal Cost (MC) is the cost of producing an extra unit ofoutput. MC intersects or cuts the average variable cost and Averagecost at its minimum. MC intersects AVC and AC at its minimumbecause the marginal cost of making the next output will affect theaverage cost.If MC is less than AVC, then AVC will fall.If MC is greater than AVC then AVC will increase.If MC is less than AC then AC will decline and If MC is greater than AC then ... See the full answer