Question 1

Diseconomies of scale are present when

Accepted Answer

A) the LRAC curve slopes downward. 
B) average total cost falls as input increases. 
C) average total cost rises as output increases. 
D) the LRAC curve is horizontal. 
E) total fixed cost increases. 
A) the LRAC curve slopes downward. 
B) average total cost falls as input increases. 
C) average total cost rises as output increases. 
D) the LRAC curve is horizontal. 
E) total fixed cost increases. C

Question 2

Suppose the marginal product of energy equals the average product of energy.This implies that

Accepted Answer

A) marginal product is negative. 
B) average product is at its maximum value. 
C) marginal product is at its maximum value. 
D) the marginal product curve is upward sloping. 
E) average product is at its minimum value. 
A) marginal product is negative. 
B) average product is at its maximum value. 
C) marginal product is at its maximum value. 
D) the marginal product curve is upward sloping. 
E) average product is at its minimum value. B

Question 3

Use the figure below to answer the following questions.   Figure 10.2.1
-Refer to Figure 10.2.1 which illustrates Tania's Teapots' total product curve.Marginal product of labour reaches its maximum when the number of workers increases from

Accepted Answer

A) zero to 1. 
B) 1 to 2. 
C) 2 to 3. 
D) 3 to 4. 
E) 4 to 5. 
A) zero to 1. 
B) 1 to 2. 
C) 2 to 3. 
D) 3 to 4. 
E) 4 to 5. B

Question 4

Use the figure below to answer the following questions.   Figure 10.4.1
-Refer to Figure 10.4.1,which illustrates the total product curves for four different plant sizes.One of the fundamental technological facts reflected in the shape of each of the total product curves is the

Accepted Answer

A) price of the inputs. 
B) price of the output. 
C) law of diminishing marginal returns. 
D) law of economies of scale. 
E) fact that capital and labour cannot be substituted for each other. 
A) price of the inputs. 
B) price of the output. 
C) law of diminishing marginal returns. 
D) law of economies of scale. 
E) fact that capital and labour cannot be substituted for each other.

Question 5

Refer to the table below to answer the following questions.
Table 10.2.1
  
-Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.The marginal product when Tania's increases the number of workers from 3 to 4 per day is

Accepted Answer

A) 6 teapots. 
B) 2 teapots. 
C) 9 teapots. 
D) 7 teapots. 
E) 4 teapots. 
A) 6 teapots. 
B) 2 teapots. 
C) 9 teapots. 
D) 7 teapots. 
E) 4 teapots.

Question 6

If energy (E)is the only input used to produce output (Q),what is the formula for average product of energy?

Accepted Answer

A) ΔQ/ΔE 
B) Q/E 
C) ΔE/ΔQ 
D) E/Q 
E) Q ∗ E 
A) ΔQ/ΔE 
B) Q/E 
C) ΔE/ΔQ 
D) E/Q 
E) Q ∗ E

Question 7

Refer to the table below to answer the following questions.
Table 10.2.1
  
-Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.Average product of labour reaches its maximum for the ________ worker.

Accepted Answer

A) first 
B) second 
C) third 
D) fourth 
E) fifth 
A) first 
B) second 
C) third 
D) fourth 
E) fifth

Question 8

In the long run,a firm has no factors of production that are

Accepted Answer

A) variable. 
B) marginal. 
C) significant. 
D) taxable. 
E) fixed. 
A) variable. 
B) marginal. 
C) significant. 
D) taxable. 
E) fixed.

Question 9

If energy (E)is the only input used to produce output (Q),what is the formula for marginal product of energy?

Accepted Answer

A) Q ∗ E 
B) Q/E 
C) ΔQ/ΔE 
D) ΔE/ΔQ 
E) E/Q 
A) Q ∗ E 
B) Q/E 
C) ΔQ/ΔE 
D) ΔE/ΔQ 
E) E/Q

Question 10

Plant refers to those factors of production

Accepted Answer

A) that are too expensive for the firm to purchase. 
B) that must be held in storage for at least one year. 
C) that are fixed in the short run. 
D) that have a decreasing marginal product as more of the factor is used. 
E) which can be purchased only in fixed quantity lots. 
A) that are too expensive for the firm to purchase. 
B) that must be held in storage for at least one year. 
C) that are fixed in the short run. 
D) that have a decreasing marginal product as more of the factor is used. 
E) which can be purchased only in fixed quantity lots.

Question 11

When Coffee 'n' Cream in Victoria,British Columbia hires two students,64 customers can be served in one hour.Suppose the manager of the restaurant observes that after hiring the third student,80 customers are being served in one hour.The marginal product of the third student is ________ customers per hour.

Accepted Answer

A) 4 
B) 16 
C) 8 
D) 26.67 
E) 32 
A) 4 
B) 16 
C) 8 
D) 26.67 
E) 32

Question 12

Use the table below to answer the following questions.
Table 10.3.1  
-Refer to Table 10.3.1,which gives Tania's Teapots' total cost schedule.The average total cost of producing 16 teapots per day is

Accepted Answer

A) $2. 
B) $5. 
C) $3.33. 
D) $7.50. 
E) $5.51. 
A) $2. 
B) $5. 
C) $3.33. 
D) $7.50. 
E) $5.51.

Question 13

Use the table below to answer the following questions.
Table 10.4.1
Swanky's output levels  
-Refer to Table 10.4.1,which represents Swanky's production possibilities as the firm varies the quantities of knitting machines and workers per day.If Swanky increases the number of knitting machines from 2 to 3 and increases the number of workers employed from 2 to 3,the factory experiences

Accepted Answer

A) economies of scale. 
B) constant returns to scale. 
C) diseconomies of scale. 
D) constant marginal product. 
E) minimum efficient scale. 
A) economies of scale. 
B) constant returns to scale. 
C) diseconomies of scale. 
D) constant marginal product. 
E) minimum efficient scale.

Question 14

Marginal cost equals

Accepted Answer

A) TC/Q. 
B) Q/TVC. 
C) (TC - TV
C) /Q. 
D) TC/ΔQ. 
E) ΔTC/ΔQ. 
A) TC/Q. 
B) Q/TVC. 
C) (TC - TV
C) /Q. 
D) TC/ΔQ. 
E) ΔTC/ΔQ.

Question 15

Which of the following factors are fixed in the long run?

Accepted Answer

A) labour 
B) capital 
C) land 
D) entrepreneurship 
E) No factors of production are fixed in the long run. 
A) labour 
B) capital 
C) land 
D) entrepreneurship 
E) No factors of production are fixed in the long run.

Question 16

Use the table below to answer the following questions.
Table 10.4.1
Swanky's output levels  
-Refer to Table 10.4.1,which represents Swanky's production possibilities as the firm varies the quantities of knitting machines and workers per day.If Swanky increases the number of knitting machines from 1 to 2 and increases the number of workers employed from 1 to 2,the factory experiences

Accepted Answer

A) economies of scale. 
B) constant returns to scale. 
C) diseconomies of scale. 
D) constant marginal product. 
E) minimum efficient scale. 
A) economies of scale. 
B) constant returns to scale. 
C) diseconomies of scale. 
D) constant marginal product. 
E) minimum efficient scale.

Question 17

The marginal cost curve slopes upward due to

Accepted Answer

A) diminishing marginal utility. 
B) diminishing marginal returns. 
C) technological inefficiency. 
D) economic inefficiency. 
E) spreading fixed costs over a larger output. 
A) diminishing marginal utility. 
B) diminishing marginal returns. 
C) technological inefficiency. 
D) economic inefficiency. 
E) spreading fixed costs over a larger output.

Question 18

If the total product of four workers is 156 units,the average product of each worker is

Accepted Answer

A) 39 units. 
B) 19.5 units. 
C) 78 units. 
D) 152 units. 
E) 624 units. 
A) 39 units. 
B) 19.5 units. 
C) 78 units. 
D) 152 units. 
E) 624 units.

Question 19

The marginal cost curve slopes downward at low outputs because of ________.The marginal cost curve eventually slopes upward because of ________.

Accepted Answer

A) greater specialization and division of labour;the law of diminishing returns 
B) the law of diminishing returns;increasing average fixed cost 
C) falling average fixed cost;the law of diminishing returns 
D) the law of diminishing returns;greater specialization and division of labour 
E) greater specialization and division of labour;rising average fixed cost 
A) greater specialization and division of labour;the law of diminishing returns 
B) the law of diminishing returns;increasing average fixed cost 
C) falling average fixed cost;the law of diminishing returns 
D) the law of diminishing returns;greater specialization and division of labour 
E) greater specialization and division of labour;rising average fixed cost

Question 20

Refer to the table below to answer the following questions.
Table 10.2.1
  
-Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.Marginal product of labour reaches its maximum when the number of workers increases from

Accepted Answer

A) 0 to 1. 
B) 1 to 2. 
C) 2 to 3. 
D) 3 to 4. 
E) 4 to 5 
A) 0 to 1. 
B) 1 to 2. 
C) 2 to 3. 
D) 3 to 4. 
E) 4 to 5

Diseconomies of scale are present when

Suppose the marginal product of energy equals the average product of energy.This implies that

Use the figure below to answer the following questions. Figure 10.2.1 -Refer to Figure 10.2.1 which illustrates Tania's Teapots' total product curve.Marginal product of labour reaches its maximum when the number of workers increases from

Use the figure below to answer the following questions. Figure 10.4.1 -Refer to Figure 10.4.1,which illustrates the total product curves for four different plant sizes.One of the fundamental technological facts reflected in the shape of each of the total product curves is the

Refer to the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.The marginal product when Tania's increases the number of workers from 3 to 4 per day is

If energy (E)is the only input used to produce output (Q),what is the formula for average product of energy?

Refer to the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.Average product of labour reaches its maximum for the ________ worker.

In the long run,a firm has no factors of production that are

If energy (E)is the only input used to produce output (Q),what is the formula for marginal product of energy?

Plant refers to those factors of production

Use the table below to answer the following questions. Table 10.3.1 -Refer to Table 10.3.1,which gives Tania's Teapots' total cost schedule.The average total cost of producing 16 teapots per day is

Marginal cost equals

Which of the following factors are fixed in the long run?

The marginal cost curve slopes upward due to

If the total product of four workers is 156 units,the average product of each worker is

The marginal cost curve slopes downward at low outputs because of .The marginal cost curve eventually slopes upward because of .

Refer to the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.Marginal product of labour reaches its maximum when the number of workers increases from

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 10: Output and Costs

Diseconomies of scale are present when

Suppose the marginal product of energy equals the average product of energy.This implies that

Use the figure below to answer the following questions. Figure 10.2.1 -Refer to Figure 10.2.1 which illustrates Tania's Teapots' total product curve.Marginal product of labour reaches its maximum when the number of workers increases from

Use the figure below to answer the following questions. Figure 10.4.1 -Refer to Figure 10.4.1,which illustrates the total product curves for four different plant sizes.One of the fundamental technological facts reflected in the shape of each of the total product curves is the

Refer to the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.The marginal product when Tania's increases the number of workers from 3 to 4 per day is

If energy (E)is the only input used to produce output (Q),what is the formula for average product of energy?

Refer to the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.Average product of labour reaches its maximum for the ________ worker.

In the long run,a firm has no factors of production that are

If energy (E)is the only input used to produce output (Q),what is the formula for marginal product of energy?

Plant refers to those factors of production

Use the table below to answer the following questions. Table 10.3.1 -Refer to Table 10.3.1,which gives Tania's Teapots' total cost schedule.The average total cost of producing 16 teapots per day is

Marginal cost equals

Which of the following factors are fixed in the long run?

The marginal cost curve slopes upward due to

If the total product of four workers is 156 units,the average product of each worker is

The marginal cost curve slopes downward at low outputs because of ________.The marginal cost curve eventually slopes upward because of ________.

Refer to the table below to answer the following questions. Table 10.2.1 -Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule.Marginal product of labour reaches its maximum when the number of workers increases from

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

The marginal cost curve slopes downward at low outputs because of .The marginal cost curve eventually slopes upward because of .