San Jose Community College

San Jose, Malilipot, Albay

AY 2022-2023

Final Examination
Basic Microeconomics

Name: ___________________________________________________ Date: ________________________

%
Course/Year/Section: _______________________________________ Marks: _______________________

I. True or False: Write TRUE if the statement is correct, FALSE if it is not. (10 Marks)

1. Opportunity cost is an explicit cost. _______________

2. Normal profit is an implicit cost of the firm. _______________
3. In the long run, a firm has no fixed costs. _______________
4. An increase in marginal returns of a firm result to an increasing
average product. _______________
5. When total cost is increasing at a decreasing rate, MC, AVC, and
ATC are also declining. _______________
6. Diminishing returns happen when the firm adds more amount of a
variable input, it should also take lesser efficient units of that variable input. _______________
7. Economies of scale explains proportionality. _______________
8. The amount spent of a firm in order to carry out a particular activity is
called an outlay. _______________
9. When marginal revenue is equal to marginal cost, profit is maximized. _______________
10. Average total cost will start to increase at the level of output at which average
variable cost starts to increase. _______________

II. Fill in the missing input in the Production and Revenue Schedule. (32 Marks)

Marginal
Input Total
Q MPP Price Revenue
(Labor) Revenue
Product
0 0 0 8.75
1 8 8
2 20 12
3 37 17
4 57 20
5 72 15
6 80 8
7 85 5
8 88 3
9 86 -2
10 82 -4
III. Computation (Show your solutions)
Based on the given data, solve for the total cost (TC), marginal cost (MC), average cost (AC), average
fixed cost (AFC), and average variable cost (AVC).

Cost of Production

Q TFC TVC TC MC AFC AVC ATC

64 286 429
87 635
169 787
181 856
192 1144
199 1265
223 1789
245 2156