LECTURE 4 QUIZ 1) Which of the following is true? A

LECTURE 4

QUIZ

1) Which of the following is true?

A. Focusing on incremental costs is a bad idea for managers.

B. Fixed cost is the same as variable cost.

C. Costs look the same from all perspectives.

D. Incremental cost is the same thing as marginal cost.

2. It is important to distinguish between average and incremental cost because

A. Managers need incremental cost data to make decisions about contracts.

B. Average and incremental cost are often quite different.

C. Most management decisions are incremental.

D. All of the above.

3. True or false: an inefficient firm has costs that are higher than the quality of its products

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A. True

B. False

4. Which of the following would result in lower costs?

A. Lower prices for inputs.

B. Using fewer inputs per unit of output.

C. Increasing efficiency

D. All of the above