Question 1

Use the following to answer question:  
-(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 2 purses is:

Accepted Answer

A) $60. 
B) $120. 
C) $190. 
D) $220. 
A) $60. 
B) $120. 
C) $190. 
D) $220.

Question 2

Use the following to answer question:  
-(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The variable cost of producing 43 statues is:

Accepted Answer

A) $10. 
B) $20. 
C) $40. 
D) $43. 
A) $10. 
B) $20. 
C) $40. 
D) $43.

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 1 mixer,her average total cost _____ in the range of output between 100 and 400 cakes.

Accepted Answer

A) increases 
B) decreases 
C) remains the same 
D) can't be calculated 
A) increases 
B) decreases 
C) remains the same 
D) can't be calculated

Question 4

In the long run,every input available to a manufacturer is a fixed input.

Accepted Answer

A) True 
 B)False

Question 5

When a firm adds physical capital,in the short run fixed costs will:

Accepted Answer

A) increase. 
B) decrease. 
C) remain the same. 
D) decrease at first and then increase. 
A) increase. 
B) decrease. 
C) remain the same. 
D) decrease at first and then increase.

Question 6

Average total cost is:

Accepted Answer

A) the change in cost divided by the change in output. 
B) total cost divided by output. 
C) the change in output divided by the change in costs. 
D) total cost times output. 
A) the change in cost divided by the change in output. 
B) total cost divided by output. 
C) the change in output divided by the change in costs. 
D) total cost times output.

Question 7

Average variable cost is:

Accepted Answer

A) variable cost per unit multiplied by quantity. 
B) total variable cost divided by quantity. 
C) the difference between average total cost and total cost. 
D) the difference between total cost and total fixed cost. 
A) variable cost per unit multiplied by quantity. 
B) total variable cost divided by quantity. 
C) the difference between average total cost and total cost. 
D) the difference between total cost and total fixed cost.

Question 8

Total cost divided by the quantity of output produced is:

Accepted Answer

A) average total cost. 
B) average fixed cost. 
C) average product. 
D) marginal cost. 
A) average total cost. 
B) average fixed cost. 
C) average product. 
D) marginal cost.

Question 9

Average total cost is:

Accepted Answer

A) the change in variable cost divided by the change in quantity. 
B) total cost divided by quantity. 
C) the change in quantity divided by the change in labor costs. 
D) total cost times quantity. 
A) the change in variable cost divided by the change in quantity. 
B) total cost divided by quantity. 
C) the change in quantity divided by the change in labor costs. 
D) total cost times quantity.

Question 10

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,her average fixed cost _____ in the range of output between 100 and 400 cakes.

Accepted Answer

A) increases 
B) decreases 
C) remains the same 
D) can't be calculated 
A) increases 
B) decreases 
C) remains the same 
D) can't be calculated

Question 11

Use the following to answer question:  
-(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The average total cost of producing 6 bagels is:

Accepted Answer

A) $0.10. 
B) $0.15. 
C) $0.20. 
D) $0.80. 
A) $0.10. 
B) $0.15. 
C) $0.20. 
D) $0.80.

Question 12

The average total cost curve has a     shape because the _____ effect is dominant at low levels of output,and the _____ effect is dominant at high levels of output.

Accepted Answer

A) diminishing returns;spreading 
B) spreading;diminishing returns 
C) comparative advantage;absolute advantage 
D) absolute advantage;comparative advantage 
A) diminishing returns;spreading 
B) spreading;diminishing returns 
C) comparative advantage;absolute advantage 
D) absolute advantage;comparative advantage

Question 13

In the short run:

Accepted Answer

A) all inputs are fixed. 
B) all inputs are variable. 
C) some inputs are fixed and some inputs are variable. 
D) all costs are variable. 
A) all inputs are fixed. 
B) all inputs are variable. 
C) some inputs are fixed and some inputs are variable. 
D) all costs are variable.

Question 14

The long-run average cost curve is tangent to a series of short-run average fixed cost curves.

Accepted Answer

A) True 
 B)False

Question 15

Use the following to answer question:  
-(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A.

Accepted Answer

A) decreasing returns to scale 
B) constant returns to scale 
C) increasing returns to scale 
D) negative costs of production 
A) decreasing returns to scale 
B) constant returns to scale 
C) increasing returns to scale 
D) negative costs of production

Question 16

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.In the short run,Tonya's fixed input(s)is/are:

Accepted Answer

A) land. 
B) labor. 
C) land and labor. 
D) neither land nor labor. 
A) land. 
B) labor. 
C) land and labor. 
D) neither land nor labor.

Question 17

A firm's marginal cost is:

Accepted Answer

A) the ratio of the change in total cost to the change in the quantity of output. 
B) the change in total cost divided by the change in labor input. 
C) the slope of the average fixed cost curve. 
D) total cost divided by output. 
A) the ratio of the change in total cost to the change in the quantity of output. 
B) the change in total cost divided by the change in labor input. 
C) the slope of the average fixed cost curve. 
D) total cost divided by output.

Question 18

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

Accepted Answer

A) at its minimum. 
B) at its maximum. 
C) falling. 
D) rising. 
A) at its minimum. 
B) at its maximum. 
C) falling. 
D) rising.

Question 19

Austin's total fixed cost at the bakery is $3,600 a month.Austin employs 20 workers and pays each worker $8 an hour.The marginal product of the twentieth worker is 12 iced cupcakes an hour.What is the marginal cost of the last cupcake produced by the last worker Austin hired?

Accepted Answer

A) $0.26 
B) $0.66 
C) $3.81 
D) $8.00 
A) $0.26 
B) $0.66 
C) $3.81 
D) $8.00

Question 20

Average variable cost is the ratio of:

Accepted Answer

A) total cost to the marginal cost. 
B) variable inputs to fixed inputs. 
C) variable cost to the quantity of output. 
D) fixed costs to variable cost. 
A) total cost to the marginal cost. 
B) variable inputs to fixed inputs. 
C) variable cost to the quantity of output. 
D) fixed costs to variable cost.

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 2 purses is:

In the long run,every input available to a manufacturer is a fixed input.

When a firm adds physical capital,in the short run fixed costs will:

Average total cost is:

Average variable cost is:

Total cost divided by the quantity of output produced is:

Average total cost is:

Use the following to answer question: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The average total cost of producing 6 bagels is:

The average total cost curve has a shape because the _ effect is dominant at low levels of output,and the _ effect is dominant at high levels of output.

In the short run:

The long-run average cost curve is tangent to a series of short-run average fixed cost curves.

Use the following to answer question: -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A.

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.In the short run,Tonya's fixed input(s)is/are:

A firm's marginal cost is:

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

Austin's total fixed cost at the bakery is $3,600 a month.Austin employs 20 workers and pays each worker $8 an hour.The marginal product of the twentieth worker is 12 iced cupcakes an hour.What is the marginal cost of the last cupcake produced by the last worker Austin hired?

Average variable cost is the ratio of:

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

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 2 purses is:

In the long run,every input available to a manufacturer is a fixed input.

When a firm adds physical capital,in the short run fixed costs will:

Average total cost is:

Average variable cost is:

Total cost divided by the quantity of output produced is:

Average total cost is:

Use the following to answer question: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The average total cost of producing 6 bagels is:

The average total cost curve has a shape because the _____ effect is dominant at low levels of output,and the _____ effect is dominant at high levels of output.

In the short run:

The long-run average cost curve is tangent to a series of short-run average fixed cost curves.

Use the following to answer question: -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A.

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.In the short run,Tonya's fixed input(s)is/are:

A firm's marginal cost is:

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

Austin's total fixed cost at the bakery is $3,600 a month.Austin employs 20 workers and pays each worker $8 an hour.The marginal product of the twentieth worker is 12 iced cupcakes an hour.What is the marginal cost of the last cupcake produced by the last worker Austin hired?

Average variable cost is the ratio of:

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

The average total cost curve has a shape because the _ effect is dominant at low levels of output,and the _ effect is dominant at high levels of output.