Question 1

When the long-run average total cost curve is upward sloping as output increases,the firm has diseconomies of scale.

Accepted Answer

A) True 
 B)False

Question 2

Use the following to answer question:  
-(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the fifth purse is:

Accepted Answer

A) $60. 
B) $50. 
C) $35. 
D) $20. 
A) $60. 
B) $50. 
C) $35. 
D) $20.

Question 3

Use the following to answer question:  
-(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 200 cakes per day,what is her average fixed cost?

Accepted Answer

A) $0.05 
B) $2.50 
C) $5.00 
D) $12.50 
A) $0.05 
B) $2.50 
C) $5.00 
D) $12.50

Question 4

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q2,where Q is the quantity of dogs groomed.Given this expression,if Janet grooms five dogs,her total costs will be:

Accepted Answer

A) $100. 
B) $175. 
C) $225. 
D) $75. 
A) $100. 
B) $175. 
C) $225. 
D) $75.

Question 5

When the long-run average total cost curve is downward-sloping as output increases,the firm has diseconomies of scale.

Accepted Answer

A) True 
 B)False

Question 6

The total product curve for the Wallmark Greeting Card Company shows how the quantity of output depends on the quantity of the variable input for a given amount of the fixed inputs.

Accepted Answer

A) True 
 B)False

Question 7

(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.The marginal product of labor of the second worker is _____ units of good Z.

Accepted Answer

A) 150 
B) 225 
C) 75 
D) 250 
A) 150 
B) 225 
C) 75 
D) 250

Question 8

Use the following to answer question:  
-(Table: Output and Costs)Use Table: Output and Costs.When output increases from 1 to 2,marginal cost equals:

Accepted Answer

A) $13. 
B) $10. 
C) $8. 
D) $17. 
A) $13. 
B) $10. 
C) $8. 
D) $17.

Question 9

A fixed input is one:

Accepted Answer

A) that only exists in nature,and there is only so much of it. 
B) that can be used for one thing only. 
C) that can never produce more or less in any period. 
D) whose quantity cannot be changed in the short run. 
A) that only exists in nature,and there is only so much of it. 
B) that can be used for one thing only. 
C) that can never produce more or less in any period. 
D) whose quantity cannot be changed in the short run.

Question 10

Use the following to answer question:  
-(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.At 6 units of output,average total cost is approximately:

Accepted Answer

A) $100. 
B) $120. 
C) $170. 
D) $250. 
A) $100. 
B) $120. 
C) $170. 
D) $250.

Question 11

In the short run,if marginal cost is higher than average total cost,producing an extra unit of output must raise average total cost.

Accepted Answer

A) True 
 B)False

Question 12

When all of a firm's inputs are doubled,input prices do not change,and this results in the firm's level of production more than doubling,a firm is operating:

Accepted Answer

A) on the upward-sloping portion of its long-run average total cost curve. 
B) on the downward-sloping portion of its long-run average total cost curve. 
C) at the minimum of its long-run average total cost curve. 
D) on the upward-sloping portion of its marginal cost curve. 
A) on the upward-sloping portion of its long-run average total cost curve. 
B) on the downward-sloping portion of its long-run average total cost curve. 
C) at the minimum of its long-run average total cost curve. 
D) on the upward-sloping portion of its marginal cost curve.

Question 13

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 60,and when she hires four workers,total product is 65.The slope of the marginal product curve between two and four workers hired is:

Accepted Answer

A) positive. 
B) zero. 
C) infinite. 
D) negative. 
A) positive. 
B) zero. 
C) infinite. 
D) negative.

Question 14

The _____ cost curve continually declines as more output is produced in the short run.

Accepted Answer

A) marginal 
B) average variable 
C) average fixed 
D) average total 
A) marginal 
B) average variable 
C) average fixed 
D) average total

Question 15

The change in total cost resulting from a one-unit change in quantity is _____ cost.

Accepted Answer

A) average fixed 
B) average variable 
C) marginal 
D) average total 
A) average fixed 
B) average variable 
C) marginal 
D) average total

Question 16

If ATC is equal to MC,then the firm is operating:

Accepted Answer

A) at the minimum point of ATC. 
B) on the downward-sloping portion of ATC. 
C) on the upward-sloping portion of ATC. 
D) with increasing returns to scale. 
A) at the minimum point of ATC. 
B) on the downward-sloping portion of ATC. 
C) on the upward-sloping portion of ATC. 
D) with increasing returns to scale.

Question 17

Use the following to answer question:  
-(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers and bakes 400 cakes per day,what is her average total cost?

Accepted Answer

A) $0.02 
B) $10.75 
C) $500 
D) $1,507 
A) $0.02 
B) $10.75 
C) $500 
D) $1,507

When the long-run average total cost curve is upward sloping as output increases,the firm has diseconomies of scale.

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the fifth purse is:

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q²,where Q is the quantity of dogs groomed.Given this expression,if Janet grooms five dogs,her total costs will be:

When the long-run average total cost curve is downward-sloping as output increases,the firm has diseconomies of scale.

The total product curve for the Wallmark Greeting Card Company shows how the quantity of output depends on the quantity of the variable input for a given amount of the fixed inputs.

(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.The marginal product of labor of the second worker is _____ units of good Z.

Use the following to answer question: -(Table: Output and Costs)Use Table: Output and Costs.When output increases from 1 to 2,marginal cost equals:

A fixed input is one:

Use the following to answer question: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.At 6 units of output,average total cost is approximately:

In the short run,if marginal cost is higher than average total cost,producing an extra unit of output must raise average total cost.

When all of a firm's inputs are doubled,input prices do not change,and this results in the firm's level of production more than doubling,a firm is operating:

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 60,and when she hires four workers,total product is 65.The slope of the marginal product curve between two and four workers hired is:

The _____ cost curve continually declines as more output is produced in the short run.

The change in total cost resulting from a one-unit change in quantity is _____ cost.

If ATC is equal to MC,then the firm is operating:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 11: Behind the Supply Curve: Inputs and Costs

When the long-run average total cost curve is upward sloping as output increases,the firm has diseconomies of scale.

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the fifth purse is:

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q2,where Q is the quantity of dogs groomed.Given this expression,if Janet grooms five dogs,her total costs will be:

When the long-run average total cost curve is downward-sloping as output increases,the firm has diseconomies of scale.

The total product curve for the Wallmark Greeting Card Company shows how the quantity of output depends on the quantity of the variable input for a given amount of the fixed inputs.

(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.The marginal product of labor of the second worker is _____ units of good Z.

Use the following to answer question: -(Table: Output and Costs)Use Table: Output and Costs.When output increases from 1 to 2,marginal cost equals:

A fixed input is one:

Use the following to answer question: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.At 6 units of output,average total cost is approximately:

In the short run,if marginal cost is higher than average total cost,producing an extra unit of output must raise average total cost.

When all of a firm's inputs are doubled,input prices do not change,and this results in the firm's level of production more than doubling,a firm is operating:

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 60,and when she hires four workers,total product is 65.The slope of the marginal product curve between two and four workers hired is:

The _____ cost curve continually declines as more output is produced in the short run.

The change in total cost resulting from a one-unit change in quantity is _____ cost.

If ATC is equal to MC,then the firm is operating:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q²,where Q is the quantity of dogs groomed.Given this expression,if Janet grooms five dogs,her total costs will be: