Question 1

The short run is a time frame in which

Accepted Answer

A) the firm is not able to hire more workers. 
B) the amount of output produced is fixed. 
C) there is a shortage of most factors of production. 
D) at least one factor of production is fixed. 
E) there is not enough time to make all of the decisions necessary to maximize profit. 
A) the firm is not able to hire more workers. 
B) the amount of output produced is fixed. 
C) there is a shortage of most factors of production. 
D) at least one factor of production is fixed. 
E) there is not enough time to make all of the decisions necessary to maximize profit.

Question 2

Which one of the following statements is correct?

Accepted Answer

A) When marginal product is increasing,average product is decreasing. 
B) When average product is less than zero,marginal product is positive. 
C) When marginal product is increasing and greater than average product,average product is increasing. 
D) When marginal product is zero,total product is at its minimum. 
E) When average product exceeds marginal product,marginal product is increasing. 
A) When marginal product is increasing,average product is decreasing. 
B) When average product is less than zero,marginal product is positive. 
C) When marginal product is increasing and greater than average product,average product is increasing. 
D) When marginal product is zero,total product is at its minimum. 
E) When average product exceeds marginal product,marginal product is increasing.

Question 3

Marginal cost ________ as the quantity produced increases.

Accepted Answer

A) initially decreases and then increases 
B) always decreases 
C) always increases 
D) initially increases and then decreases 
E) becomes negative 
A) initially decreases and then increases 
B) always decreases 
C) always increases 
D) initially increases and then decreases 
E) becomes negative

Question 4

Which one of the following is included in the implicit rental rate of capital?

Accepted Answer

A) economic depreciation 
B) the cost of electricity 
C) the cost of raw materials 
D) the cost of labour 
E) the cost of heating 
A) economic depreciation 
B) the cost of electricity 
C) the cost of raw materials 
D) the cost of labour 
E) the cost of heating

Question 5

If the total product of three workers is 214 units and the total product of four workers is 221 units,then the marginal product of the fourth worker is

Accepted Answer

A) 71.3 units. 
B) 55.25 units. 
C) 7 units. 
D) 62.14 units. 
E) 1.75 units. 
A) 71.3 units. 
B) 55.25 units. 
C) 7 units. 
D) 62.14 units. 
E) 1.75 units.

The short run is a time frame in which

Which one of the following statements is correct?

Marginal cost ________ as the quantity produced increases.

Which one of the following is included in the implicit rental rate of capital?

If the total product of three workers is 214 units and the total product of four workers is 221 units,then the marginal product of the fourth worker is

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

The short run is a time frame in which

Which one of the following statements is correct?

Marginal cost ________ as the quantity produced increases.

Which one of the following is included in the implicit rental rate of capital?

If the total product of three workers is 214 units and the total product of four workers is 221 units,then the marginal product of the fourth worker is

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