Answer to Question #181944 in Macroeconomics for James

Question

QUESTION 12

This pattern of diminishing marginal utility:

1. Is impossible in the real world.
2. Is common in production.
3. Is rare in production.
4. Always exists in any business setting.
5. All of the above.

QUESTION 13

We calculate the average total cost:

1. By dividing total cost by the total quantity produced.
2. By dividing total cost by the marginal quantity produced.
3. By dividing total cost by the fictional quantity produced.
4. By dividing the amount produced by total cost.
5. Only in case of emergencies.

QUESTION 14

We calculate marginal cost:

1. Only in case of emergencies.
2. Only in case of necessities.
3. By taking the change in total cost between two levels of output and dividing it by the change in output.
4. By dividing total cost by the total quantity produced.
5. By inches.

QUESTION 15

The marginal cost curve:

1. Is always a straight line.
2. Is upward sloping.
3. Is downward sloping.
4. Does not really exist.
5. Was illustrated by Kevin Spacey in the movie “Fast Times at Ridgemont High”.

Answer 1

12 This pattern of diminishing marginal utility impossible in the real world.

13. Average total cost by dividing total cost by the total quantity produced.

14 marginal cost is calculated by taking change in total cost between two levels of output and dividing it by the change in output.

15.The marginal cost curve is upward-sloping