ECON 201 Week 5 Quiz (Chapter 8) | Score 170/210 | American Military University

ECON 201 Week 5 Quiz (Chapter 8)
Results Attempt 1 of 1

Written Jun 5, 2025 12:03 PM - Jun 5, 2025 2:10 PM

Attempt Score

- 80.95 %

Overall Grade (Highest Attempt)

- 80.95 %

Question 1 points

Average variable cost is:

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the firm's variable cost per unit multiplied by the quantity.

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total variable cost divided by quantity.

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the difference between average total cost and total variable cost.

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the difference between total cost and total variable cost.

Question 2 points

Which of the following is (are) correct?

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Firms are organizations that produce goods and services.

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Firms seek to maximize profits.

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Firms seek to utilize factors of production in the most efficient way in order to maximize profits.

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All of the above are correct.

, Question 3 points

For a restaurant:

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labor and food would be variable factors of production.

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a building would be a fixed factor of production in the short run.

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fire insurance on a building would be a fixed factor of production.

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A and B are correct.
Question 4 points

Diminishing marginal returns means that:

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each additional unit of an input used will decrease output.

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each additional unit of an input used will increase output, but by smaller and smaller amounts.

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each additional unit of an input used will increase output by larger and larger amounts.

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the firm is maximizing profit.

Question 5 points

When marginal cost is below average variable cost, average variable cost must be:

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at its minimum.

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at its maximum.