Answer the following statements true (T) or false (F)

1) If a firm's total cost of production is equal to $90,000 and they have a fixed cost of $45,000, the company's variable costs are also $45,000.
2) If a firm's fixed cost is $10,000 and the firm produces zero output, the firm's total cost to produce zero output is less than $10,000.
3) The vertical distance between the average variable cost and average total cost curves becomes greater as the quantity increases.
4) When the marginal product of labor is at its maximum, the marginal cost is at its minimum.
5) If the price of a fixed input increases, the fixed cost curve and the average total cost curve shift upward, but the marginal cost curve and the average variable cost curve do not shift.


1) TRUE
2) FALSE
3) FALSE
4) TRUE
5) TRUE

Anthropology & Archaeology

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