QEcon 142Sample Problems – Costs (See both sides)11/5/2014For the next 4 questions use the following table. Do not worry about any cell that has “—“ in it. NOTE: You only need to complete as much of the table as is necessary to answer the next four questions. Do not worry if your decimals do not match exactly.QFC VC TC AFC AVC ATC MC0 40.00 -- 40.00 -- -- -- --1 40.00 34.00 74.00 40.002 102.003 30.004 10.00 38.005 35.606 168.007 40.00 35.008 5.00 31.259 346.0010 38.00 42.00 74.0011 40.00 477.0012 49.00 111.001. When output (Q) = 4, total costs = approx.a. 176b. 180c. 152d. None of the above2. When output (Q) = 5, marginal costs = approx.a. 14b. 26c. 30d. None of the above3. When output (Q) = 7, variable costs = approx.a. 195b. 215c. 203d. None of the above4. When output (Q) = 11, marginal costs = approx.a. 82b. 97c. 104d. None of the above5. Assume capital (equipment) is fixed, and labor is the only variable input. Assume the wage is $200 perday, you are employing 4 workers and total output is 320, and the output produced by the 4th workers is 40 (the total output of 320 includes this 40). The marginal cost when you are producing 320 units of output is…a. $5b. $2.5c. $80d. $1.336. Your firm is a coffee shop. Your fixed costs are the cost of the shop, $600. Your variable costs are the cost of each worker, $80 each. Employing 3 workers your average product is 48 cups of coffee. Your average total cost is:a. approximately $2.13b. approximately $5.83 c. approximately $2.92d. We cannot tell from the information given 7. Marginal product is the change in _____ divided by change in _____, while marginal cost is _____ divided by change in _____. a. inputs; output; total costs; quantity of inputsb. output; quantity of inputs; total costs; quantity of inputsc. output; cost of an input; total costs; quantity of inputsd. output; quantity of inputs; total cost;
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