Question 1

Using the table above, for which of the following levels of employment does the average product of labor exceed the marginal product of labor at Decent Donuts?

Accepted Answer

A)  ten workers 
B)  seven workers 
C)  both of the above 
D)  neither of the above 
A)  ten workers 
B)  seven workers 
C)  both of the above 
D)  neither of the above

Question 2

Pizza Hut  
-Using the data in the above table, what is the marginal product of the second worker?

Accepted Answer

A)  4.5 pizzas per hour 
B)  4 pizzas per hour 
C)  5 pizzas per hour 
D)  The marginal product is undefined. 
A)  4.5 pizzas per hour 
B)  4 pizzas per hour 
C)  5 pizzas per hour 
D)  The marginal product is undefined.

Question 3

-The above table shows some cost data for Tracey's Tents. What is the marginal cost of the 3rd tent?

Accepted Answer

A)  $25 
B)  $20 
C)  $70 
D)  $120 
A)  $25 
B)  $20 
C)  $70 
D)  $120

Question 4

What is the relationship between the marginal product of labor and the marginal cost?

Accepted Answer

Initially, as each additional unit of la

Question 5

-The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the marginal cost of producing the 90th unit?

Accepted Answer

A)  $10.00 
B)  $24.92 
C)  $31.61 
D)  $50.00 
A)  $10.00 
B)  $24.92 
C)  $31.61 
D)  $50.00

Question 6

The marginal cost (MC) curve intersects the

Accepted Answer

A)  ATC, AVC, and AFC curves at their minimum points. 
B)  ATC and AFC curves at their minimum points. 
C)  AVC and AFC curves at their minimum points. 
D)  ATC and AVC curves at their minimum points. 
A)  ATC, AVC, and AFC curves at their minimum points. 
B)  ATC and AFC curves at their minimum points. 
C)  AVC and AFC curves at their minimum points. 
D)  ATC and AVC curves at their minimum points.

Question 7

Jefferson's Cleaners  
-Using the above table, what is the average product of labor when Jefferson's Cleaners employs six workers?

Accepted Answer

A)  11 suits per day 
B)  12 suits per day 
C)  13 suits per day 
D)  14 suits per day 
A)  11 suits per day 
B)  12 suits per day 
C)  13 suits per day 
D)  14 suits per day

Question 8

-In the above figure, the marginal cost curve is curve

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  D. 
A)  A. 
B)  B. 
C)  C. 
D)  D.

Question 9

The short run is a period of time in which

Accepted Answer

A)  the quantity used of at least one factor of production is fixed. 
B)  the quantities used of all factors of production are fixed. 
C)  output prices are fixed. 
D)  factor of production prices are fixed. 
A)  the quantity used of at least one factor of production is fixed. 
B)  the quantities used of all factors of production are fixed. 
C)  output prices are fixed. 
D)  factor of production prices are fixed.

Question 10

A firm's long-run average cost curve is derived from a series of short-run average total cost curves.

Accepted Answer

A) True 
 B)False

Question 11

When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company can generate more electricity by using more fuel and increasing the working hours of many of its employees. The company cannot, however, increase electric power production by building additional generating capacity. This means that the company is in the

Accepted Answer

A)  market run. 
B)  short run. 
C)  intermediate run. 
D)  long run. 
A)  market run. 
B)  short run. 
C)  intermediate run. 
D)  long run.

Question 12

-In the above figure, the minimum efficient scale of output is

Accepted Answer

A)  5,000 pounds of coffee. 
B)  10,000 pounds of coffee. 
C)  13,000 pounds of coffee. 
D)  15,000 pounds of coffee. 
A)  5,000 pounds of coffee. 
B)  10,000 pounds of coffee. 
C)  13,000 pounds of coffee. 
D)  15,000 pounds of coffee.

Question 13

By using more labor to produce more output, a firm can always reduce its

Accepted Answer

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

Question 14

A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit

Accepted Answer

A)  is $3.20. 
B)  is $4.00. 
C)  is $320. 
D)  cannot be calculated with this information. 
A)  is $3.20. 
B)  is $4.00. 
C)  is $320. 
D)  cannot be calculated with this information.

Question 15

A common source of diseconomies of scale is the

Accepted Answer

A)  diminishing marginal returns to capital. 
B)  diminishing marginal returns to labor. 
C)  diminishing marginal returns to land. 
D)  growing complexity of management and organizational structure. 
A)  diminishing marginal returns to capital. 
B)  diminishing marginal returns to labor. 
C)  diminishing marginal returns to land. 
D)  growing complexity of management and organizational structure.

Question 16

A firm's average variable cost is $90, its total fixed cost is $10,000, and its output is 1,000 units. Its total cost is

Accepted Answer

A)  less than $85,000. 
B)  between $85,000 and $95,000. 
C)  between $95,000 and $105,000. 
D)  more than $105,000. 
A)  less than $85,000. 
B)  between $85,000 and $95,000. 
C)  between $95,000 and $105,000. 
D)  more than $105,000.

Question 17

When long-run average cost decreases as output increases, there are definitely I. increasing marginal returns.
II) economies of scale.

Accepted Answer

A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II 
A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II

Question 18

-The above table has the total product schedule for Jesse's Lawn Service.
a) In the figure, label the axes and then graph the total product curve.
b) Find the average product for the different amounts of employment.

Accepted Answer

@#IMG-DLM& a) The figure graphs the total product

Question 19

Points on a firm's total product curve are

Accepted Answer

A)  both attainable and technologically efficient. 
B)  neither attainable nor technologically efficient. 
C)  attainable but not technologically efficient. 
D)  technologically efficient but not attainable. 
A)  both attainable and technologically efficient. 
B)  neither attainable nor technologically efficient. 
C)  attainable but not technologically efficient. 
D)  technologically efficient but not attainable.

Question 20

If a firm's marginal product of labor is greater than its average product of labor, then an increase in the quantity of labor it employs definitely

Accepted Answer

A)  increases its total product. 
B)  increases its marginal product of labor. 
C)  decreases its average product of labor. 
D)  does not change its average product of labor. 
A)  increases its total product. 
B)  increases its marginal product of labor. 
C)  decreases its average product of labor. 
D)  does not change its average product of labor.

Exam 11: Output and Costs

Using the table above, for which of the following levels of employment does the average product of labor exceed the marginal product of labor at Decent Donuts?

Pizza Hut -Using the data in the above table, what is the marginal product of the second worker?

-The above table shows some cost data for Tracey's Tents. What is the marginal cost of the 3rd tent?

What is the relationship between the marginal product of labor and the marginal cost?

-The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the marginal cost of producing the 90th unit?

The marginal cost (MC) curve intersects the

Jefferson's Cleaners -Using the above table, what is the average product of labor when Jefferson's Cleaners employs six workers?

-In the above figure, the marginal cost curve is curve

The short run is a period of time in which

A firm's long-run average cost curve is derived from a series of short-run average total cost curves.

-In the above figure, the minimum efficient scale of output is

By using more labor to produce more output, a firm can always reduce its

A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit

A common source of diseconomies of scale is the

A firm's average variable cost is $90, its total fixed cost is $10,000, and its output is 1,000 units. Its total cost is

When long-run average cost decreases as output increases, there are definitely I. increasing marginal returns. II) economies of scale.

-The above table has the total product schedule for Jesse's Lawn Service. a) In the figure, label the axes and then graph the total product curve. b) Find the average product for the different amounts of employment.

Points on a firm's total product curve are

If a firm's marginal product of labor is greater than its average product of labor, then an increase in the quantity of labor it employs definitely

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

Organizing Production

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

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Extension C: Review

Extension D: Review

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