1. 7b – Short Run Cost Curves
This web quiz may appear as two pages on tablets and laptops.
I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.

2. 7b Short Run Cost Curves TC TVC TFC ATC AVC AFC and MC Be able to:
Define
Examples
Calculate
Draw
Describe graph shapes

3. 7b Short Run Cost Curves Be able to find: TC TVC TFC ATC AVC AFC MC
On a:
Table of data
Graph with numbers
Graph with letters using geometry
See Yellow Pages

4. 7b – Short Run Costs
Total Cost Curves Average Cost Curves
and MC

5. 1. Costs that do not change with output are called:
Marginal costs
Average costs
Variable costs
Fixed costs

6. 1. Costs that do not change with output are called:
Marginal costs
Average costs
Variable costs
Fixed costs

7. 2. The variable cost curve represents the expenditures on______ to produce a given quantity of ______.
output; output
fixed cost; input
variable cost; output
variable cost; input

8. 2. The variable cost curve represents the expenditures on______ to produce a given quantity of ______.
output; output
fixed cost; input
variable cost; output
variable cost; input

9. Define, Draw, Describe, Examples: (see Yellow Pages lesson 7b)
Fixed costs
Variable costs
Total costs (TFC, TVC, TC)
Average costs (AFC, AVC, ATC)
Marginal cost (MC)

10. 3. The economic information that MC gives us is:
The value of all resources used in the production process
The amount by which total cost increases when one more is produced
The amount that fixed cost increases when one more is produced
The amount that profits go up when one more is produced

11. 3. The economic information that MC gives us is:
The value of all resources used in the production process
The amount by which total cost increases when one more is produced
The amount that fixed cost increases when one more is produced
The amount that profits go up when one more is produced

12. 4. When marginal productivity (MP) is at its maximum, which is true?
Profit is at a maximum
MC is at a minimum
AVC is at a minimum
The firm is profitable

13. 4. When marginal productivity (MP) is at its maximum, which is true?
Profit is at a maximum
MC is at a minimum
AVC is at a minimum
The firm is profitable

17. 5. At low levels of production, MC costs fall as output is increased because:
Firms are increasing plant capacity
Teamwork and specialization
The existing workers are getting in each others way
The plant is getting less crowded

18. 5. TEAM At low levels of production, MC costs fall as output is increased because:
Firms are increasing plant capacity
Teamwork and specialization
The existing workers are getting in each others way
The plant is getting less crowded

21. 6. The slope of the TC curve (and the TVC curve) at any point is:
The MC
The TFC
The AVC
increasing at first then decreasing

22. 6. TEAM The slope of the TC curve (and the TVC curve) at any point is:
The MC
The TFC
The AVC
increasing at first then decreasing

24. MC is the slope of the TC and TVC

25. Remember: MC is the slope of TC and TVC
LESS SLOPE | MORE SLOPE MC LESS | MC MORE
Remember: MC is the slope of TC and TVC

26. The area under the MC curve is the TVC

27. The area under the MC curve is the TVC.
Why not the area under the TC?
TC includes fixed costs and
variable costs. MC is the additional
cost, therefore marginal cost is
derived solely from variable costs,
and not fixed costs.

31. 7. Which of the following curves is not U-shaped?
ATC
AFC
AVC MC

32. 7. Which of the following curves is not U-shaped?
ATC
AFC
AVC MC

35. 8. Which is correct?
A B C A B C

36. 8. Which is correct?
A B C A B C

39. Notice the error in this graph taken from one of the video lecture quizzes.
Error: the ATC and AVC should be getting closer together

40. 9. Which is CORRECT?
A B C A B C

41. 9. Which is CORRECT?
A B C A B C

42. MC should
cross ATC and
AVC at their
lowest points

43. If your GPA = 3.0 and your marginal grade point this semester (MGP) is 2.0, what will happen to your GPA?
So, if MC is below ATC, then ATC will decline.
And, if MC is below AVC, then AVC will decline.

44. If your GPA = 3.0 and your marginal grade point this semester (MGP) is 4.0, what will happen to your GPA?
So, if MC is above ATC, then ATC will rise.
And, if MC is above AVC, then AVC will rise.

45. 10. MC will increase for all of the following except:
Higher rent costs
Higher labor costs
Higher energy cost
Higher material costs

46. 10. MC will increase for all of the following except:
Higher rent cost
Higher labor costs
Higher energy costs
Higher material costs

47. 7b Short Run Cost Curves TC Be able to: TVC Calculate TFC Define ATC
AVC
AFC
and MC
Be able to:
Calculate
Define
Draw
Describe graph shapes
Give Examples

48. 7b Short Run Cost Curves TC Be able to find on a: TVC Table TFC
ATC
AVC
AFC
and MC
Be able to find on a:
Table
Graph with numbers
Graph with letters using geometry

49. 7b
Total Cost Curves Average Cost Curves
and MC

50. 11. If quantity = 3, what is TC?
$ 24
$ 48
$ 72
$ 144
Cannot be found

51. 11. If quantity = 3, what is TC?
$ 24
$ 48
$ 72
$ 144
Cannot be found

52. 12. If quantity = 3, what is TFC?
$ 24
$ 48
$ 72
$ 144
Cannot be found

53. 12. If quantity = 3, what is TFC?
$ 24
$ 48
$ 72
$ 144
Cannot be found

54. 13. If quantity = 3, what is TVC?
$ 24
$ 48
$ 72
$ 144
Cannot be found

55. 13. If quantity = 3, what is TVC?
$ 24
$ 48
$ 72
$ 144
Cannot be found

56. 14. If quantity = 3, what is ATC?
$ 0
$ 12
$ 16
$ 48
Cannot be found

57. 14. If quantity = 3, what is ATC?
$ 0
$ 12
$ 16
$ 48
Cannot be found

58. 15. If quantity = 3, what is AFC?
$ 0
$ 6
$ 8
$ 12

59. 15. If quantity = 3, what is AFC?
$ 0
$ 6
$ 8
$ 12

60. 16. If quantity = 3, what is AVC?
$ 0
$ 6
$ 8
$ 12

61. 16. If quantity = 3, what is AVC?
$ 0
$ 6
$ 8
$ 12

62. 17. If quantity = 3, what is MC?
$ 0
$ 7
$ 48
$ 144

63. 17. If quantity = 3, what is MC?
$ 0
$ 7
$ 48
$ 144

64. 18. Q = 250, what is ATC?
$0.15
$0.30
$0.47
$0.50
$0.65

65. 18. Q = 250, what is ATC?
$0.15
$0.30
$0.47
$0.50
$0.65

66. Q = 250, what is ATC?
$0.15
$0.30
$0.47
$0.50
$0.65

67. 19. Q = 250, what is AVC?
$0.15
$0.30
$0.47
$0.50
$0.65

68. 19. Q = 250, what is AVC?
$0.15
$0.30
$0.47
$0.50
$0.65

69. Q = 250, what is AVC?
$0.15
$0.30
$0.47
$0.50
$0.65

70. 20. Q= 250, what is AFC?
$ 0.60
$ 0.50
$ 0.30
$ 0.20

71. 20. Q= 250, what is AFC?
$ 0.60
$ 0.50
$ 0.30
$ 0.20

72. At Q = 250: ATC - AVC = AFC = .20

73. 21. Q = 250, what is TC?
$ 125
$ 150
$ 200
$ 250

74. 21. Q = 250, what is TC?
$ 125
$ 150
$ 200
$ 250

75. At Q = 250: ATC x Q = TC $ 0.50 x 250 = $ 125

76. 22. Q = 250, what is TVC?
$30
$ 75
$ 150
$ 250

77. 22. Q = 250, what is TVC?
$30
$ 75
$ 150
$ 250

78. At Q = 250: AVC x Q = TVC $ 0.30 x 250 = $ 75

79. 23. Q =250, what is TFC?
$ 30
$ 50
$ 75
$ 150
$ 250

80. 23. Q =250, what is TFC?
$ 30
$ 50
$ 75
$ 150
$ 250

81. At Q = 250: AFC x Q = TFC .20 x 250 = $ 50

82. 24. Q=250, what is MC?
$ 0.30
$ 0.50
$ 0.65 $
$ 250

83. 24. Q=250, what is MC?
$ 0.30
$ 0.50
$ 0.65 $
$ 250

84. 14. Q=250, what is MC?
$ 0.30
$ 0.50
$ 0.65 $
$ 250

85. 25. If quantity = Q, what is ATC?0B 0C BC

86. 25. If quantity = Q, what is ATC?0B 0C BC

87. At quantity = Q:

88. 26. If quantity = Q, what is AVC?0B 0C BC

89. 26. If quantity = Q, what is AVC?0B 0C BC

90. At quantity = Q:

91. 27. If quantity = Q, what is AFC?AB OB OC BC

92. 27. If quantity = Q, what is AFC?AB OB OC BC

93. At quantity = Q: ATC – AVC = AFC 0C – 0B = BC

94. 28. If quantity = Q, what is TFC?
0CDQ
0BEQ
BCDE 0A

95. 28. If quantity = Q, what is TFC?
0CDQ
0BEQ
BCDE 0A

96. At quantity = Q: TFC = AFC x Q TFC = BCDE

97. 29. If quantity = Q, what is TVC?
0CDQ
0BEQ
0AFQ
BCDE

98. 29. If quantity = Q, what is TVC?
0CDQ
0BEQ
0AFQ
BCDE

99. At quantity = Q: TVC = AVC x Q TVC = 0BEQ

100. 30. If quantity = Q, what is TC?
0CDQ
OBEQ
BCDE
0AFQ

101. 30. If quantity = Q, what is TC?
0CDQ
OBEQ
BCDE
0AFQ

102. At quantity = Q: TC = ATC x Q TC = 0CDQ

103. 31. If quantity = Q, what is MC?
0CDQ
0BEQ
BCDE 0B

104. 31. If quantity = Q, what is MC?
0CDQ
0BEQ
BCDE 0B