I

.Tr
ue/
fal
se

1.Whent
het
otal
productdecr
easemar
ginal
productal
sodecr
eases.

2.Theshor
trunAC,
AVCandMCar
eal
lU-shaped.

3.I
mpl
i
citcost
sar
epr
act
ical
l
ythesamewi
thoppor
tuni
tycost
.

4.Thedecr
easei
ninputhol
dingt
hequant
it
iesofot
herf
act
orsconst
anti
ster
medasmar
ginal
product
.

I
I.Choi
ce

5.Whenanoutputi
sdecl
i
ning,
var
iabl
ecost
sar
e__
___
___
_

A,
decr
easi
ng. B,
incr
easi
ng. C,
const
ant
. D,
noneoft
heabov
e

6.Whi
choft
hef
oll
owi
ngi
snoti
ntangi
bleout
put
?

A.Cash B.Repai
r C.I
nsur
ance. D.Educat
ion

7.Whi
chst
ageofpr
oduct
ioni
sthemostef
fi
cient
?

A.St
ageI B.St
ageI
I C.St
ageI
II D.Al
l

I
II
.Wor
kout

8.Compl
etet
hef
oll
owi
ngt
abl
e.

Out
put TFC AFC TVC AVC TC ATC MC

0 50 0 50

1 50 10 60

2 50 15 65

3 50 20 70

4 50 30 80

I
V.Shor
tanswer
s.

9.Whati
sthedi
ff
erencebet
weenaccount
ingcostandeconomi
ccost
?

10.Whati
stheot
herv
alueofmar
ginal
cost
?
 Answer
s

1.Fal
se

2.Tr
ue

3.Tr
ue

4.Fal
se

5.A

6.A

7.A

8.

Out
put TFC AFC TVC AVC TC ATC MC

0 50 - 0 - 50 - -

1 50 50 10 10 60 60 10

2 50 25 15 7.
5 65 32.
5 5

3 50 16.
6 20 6.
6 70 23.
3 5

4 50 12.
5 30 7.
5 80 20 10

9.Account
ingcosti
sthemonet
aryv
alueofal
lpur
chasedi
nput
susedi
npr
oduct
ion.

Economi
ccosti
sthesum ofi
mpl
i
citandexpl
i
citcost
s.

10.Thechangei
ntot
alcost

Gr
oupMember
s

1.Et
subYewondwossen

2.Hel
i
naShi
gaze

3.KenaGi
ragn

4.Ti
rsi
tGet
achew

5.Tsedeni
aMekonnen