# Test Prep For AP® Courses

37.

What is the marginal cost of the third unit of output?

Quantity Total Revenue Total Cost
0 $0$10
1 $20$18
2 $36$24
3 $48$28
4 $56$36
5 $60$46
6 $60$58
Table 7.8
1. $4 2.$10
3. $28 4.$48
5. $60 38. What is the average profit from selling four units of output? Quantity Total Revenue Total Cost 0$0 $10 1$20 $18 2$36 $24 3$48 $28 4$56 $36 5$60 $46 6$60 $58 Table 7.9 1.$4
2. $5 3.$10
4. $20 5.$56
39.

Which of the following events can be classified as a firm experiencing diseconomies of scale?

1. The firm’s total revenues begin to decline.
2. The firm is operating at a point where long-run average costs are falling.
3. The firm’s average total costs are constant.
4. The firm is operating at a point where marginal costs are rising.
5. The elasticity of demand for a firm’s product is –3.