A manager wishes to estimate an average cost equation of the following form:C = a + bQ + cQ2whereQ is the level of output. Letting Z = Q2 and using least-squares estimation, the manager obtains the following computer output: 
Given the above information, when output is 40 units, what is average cost?
A. $200
B. $480
C. $520
D. $280
E. $360
Answer: B
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To compare the purchasing power of nominal wages in two different years, one must:
A. deflate both quantities by a common price index. B. adjust both quantities by the real interest rate. C. increase both quantities by the same percentage increase in a price index. D. compare the nominal values.
If a firm in a perfectly competitive market faces a market price of $5, and it decides to produce 400 units, the firm's total revenue will be:
A. $5. B. $400. C. $2,000. D. $405.
The slope of the total variable cost curve gives the average cost of production
Indicate whether the statement is true or false
If the principle of increasing marginal opportunity cost holds, the opportunity cost of producing each additional unit of a good should fall as production of that good rises.
Answer the following statement true (T) or false (F)