Econ AL mc(cost)

Two firms X and Y have identical total variable cost functions, but the total fixed cost of X is higher than that of Y by $25000, then

A. X's marginal cost curve is parallel to but higher than Y's.
B. X's marginal cost curve is parallel to but lower than Y's.
C. X's and Y's marginal cost curves are not parallel.
D. both X and Y have identical marginal cost curves. (87 Q.1)

Why the ans is D?





If the fixed cost is positive and the average variable cost is constant, which of the following statements is true?

A. The average total cost decreases with expansion in output.
B. The marginal cost is equal to the average total cost.
C. The firm's average total cost is a straight line.
D. The average fixed cost is constant. (92 Q.1)

Why the ans is A?





Which of the following statements concerning the relationships among total product (TP), average product(AP), and marginal product (MP) is not correct?

A. AP continues to rise so long as TP is rising.
B. TP is at a maximum when MP is zero.
C. The slope of the TP curve is MP.
D. The MP curve cuts the AP curve at the maximum of the AP curve. (94 Q.28)

Why the ans is A?





Suppose the alternative earnings of all workers, both existing and new, in a particular trade are identical and constant, and suppose new workers in that trade accept a 15% wage cut. Which of the following statements about the workers in the trade is correct?

A. Both existing and new workers would definitely earn economic rents.
B. The cost of quiting the job would remain unchanged for the existing workers.
C. The transfer earnings of the existing workers would decrease by 15%.
D. All of the above. (00 Q.24)

Why the ans is B?