Question 1

Marginal cost ________ as the quantity produced is increased.

Accepted Answer

A)  first increases and then decreases 
B)  first decreases and then increases 
C)  always increases 
D)  always decreases 
A)  first increases and then decreases 
B)  first decreases and then increases 
C)  always increases 
D)  always decreases

Question 2

When the marginal product curve is above the average product curve, ________ as output increases.

Accepted Answer

A)  average product must decrease 
B)  average product must increase 
C)  marginal product must decrease 
D)  marginal product must increase 
A)  average product must decrease 
B)  average product must increase 
C)  marginal product must decrease 
D)  marginal product must increase

Question 3

-The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour and there are no other variable costs, then at what level of books sold per hour does the marginal cost begin to increase?

Accepted Answer

A)  41 books per hour 
B)  59 books per hour 
C)  73 books per hour 
D)  90 books per hour 
A)  41 books per hour 
B)  59 books per hour 
C)  73 books per hour 
D)  90 books per hour

Question 4

-The above table gives the total cost schedule for oil changes at the local Jiffy Lube.
a) What is Jiffy Lube's total fixed cost?
b) What is the total variable cost of 2 oil changes?
c) What is the average variable cost of 4 oil changes?
d) What is the average fixed cost of 2 oil changes?
e) What is the marginal cost of the 3rd oil change?

Accepted Answer

a) The total fixed cost is $10. At zero

Question 5

Decent Donuts  
-Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the AVC curve

Accepted Answer

A)  has a negative slope. 
B)  has a positive slope. 
C)  is at its minimum point. 
D)  is at its maximum point. 
A)  has a negative slope. 
B)  has a positive slope. 
C)  is at its minimum point. 
D)  is at its maximum point.

Question 6

In the above figure, the most efficient way to produce 10 units is to hire

Accepted Answer

A)  1 worker. 
B)  2 workers. 
C)  3 workers. 
D)  5 workers. 
A)  1 worker. 
B)  2 workers. 
C)  3 workers. 
D)  5 workers.

Question 7

The steeper the slope of the total product curve, the

Accepted Answer

A)  larger is the marginal product of labor. 
B)  smaller is the marginal product of labor. 
C)  higher is the level of the total cost curve. 
D)  more efficient is the technology employed. 
A)  larger is the marginal product of labor. 
B)  smaller is the marginal product of labor. 
C)  higher is the level of the total cost curve. 
D)  more efficient is the technology employed.

Question 8

Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Rogue can produce 15 chocolate bars per day with one employee, 35 with 2, 50 with 3 and 55 with 4 employees. Which statement is true?

Accepted Answer

A)  Rogue's marginal product curve initially increases and then decreases. 
B)  Rogue's marginal product curve decreases continually. 
C)  Rogue's total product curve increases at an increasing rate. 
D)  Rogue's marginal product curve decreases initially and then increases. 
A)  Rogue's marginal product curve initially increases and then decreases. 
B)  Rogue's marginal product curve decreases continually. 
C)  Rogue's total product curve increases at an increasing rate. 
D)  Rogue's marginal product curve decreases initially and then increases.

Question 9

In general, increasing marginal returns occur

Accepted Answer

A)  as output expands at low levels of production. 
B)  through the entire range of production. 
C)  as output expands at high levels of production. 
D)  whenever the slope of the total product curve is positive. 
A)  as output expands at low levels of production. 
B)  through the entire range of production. 
C)  as output expands at high levels of production. 
D)  whenever the slope of the total product curve is positive.

Question 10

As output increases, marginal cost will eventually

Accepted Answer

A)  increase because of the law of increasing returns. 
B)  increase because of the law of diminishing returns. 
C)  decrease because of the law of diminishing returns. 
D)  decrease because of the law of increasing returns. 
A)  increase because of the law of increasing returns. 
B)  increase because of the law of diminishing returns. 
C)  decrease because of the law of diminishing returns. 
D)  decrease because of the law of increasing returns.

Question 11

-The table above shows some data that describe Tom's T-Shirts' total product when Tom has 1 sewing machine. An increase in the number of workers from 1 to 2 a day increases average product of labor from ________ T shirts per worker and marginal product of labor is ________ T shirts per worker.

Accepted Answer

A)  10 to 11; 22 
B)  10 to 22; 12 
C)  10 to 22; 22 
D)  10 to 11; 12 
A)  10 to 11; 22 
B)  10 to 22; 12 
C)  10 to 22; 22 
D)  10 to 11; 12

Question 12

How do the marginal and average products of labor affect a firm's marginal and average variable costs in the short run?

Accepted Answer

Over the range of output for which the m

Question 13

-The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. His total cost of producing 6 barrels of pickles is

Accepted Answer

A)  $160. 
B)  $180. 
C)  $450. 
D)  There is not enough information to answer the question. 
A)  $160. 
B)  $180. 
C)  $450. 
D)  There is not enough information to answer the question.

Question 14

The marginal cost curve passes through the ________ points of the ________ cost curve and the ________ cost curve.

Accepted Answer

A)  minimum; average total; average variable 
B)  minimum; average total; average fixed 
C)  maximum; total cost; total variable 
D)  minimum; average variable; average fixed 
A)  minimum; average total; average variable 
B)  minimum; average total; average fixed 
C)  maximum; total cost; total variable 
D)  minimum; average variable; average fixed

Marginal cost ________ as the quantity produced is increased.

When the marginal product curve is above the average product curve, ________ as output increases.

-The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour and there are no other variable costs, then at what level of books sold per hour does the marginal cost begin to increase?

Decent Donuts -Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the AVC curve

In the above figure, the most efficient way to produce 10 units is to hire

The steeper the slope of the total product curve, the

Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Rogue can produce 15 chocolate bars per day with one employee, 35 with 2, 50 with 3 and 55 with 4 employees. Which statement is true?

In general, increasing marginal returns occur

As output increases, marginal cost will eventually

-The table above shows some data that describe Tom's T-Shirts' total product when Tom has 1 sewing machine. An increase in the number of workers from 1 to 2 a day increases average product of labor from T shirts per worker and marginal product of labor is T shirts per worker.

How do the marginal and average products of labor affect a firm's marginal and average variable costs in the short run?

-The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. His total cost of producing 6 barrels of pickles is

The marginal cost curve passes through the points of the cost curve and the cost curve.

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

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters

Exam 11: Output and Costs

Marginal cost ________ as the quantity produced is increased.

When the marginal product curve is above the average product curve, ________ as output increases.

-The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour and there are no other variable costs, then at what level of books sold per hour does the marginal cost begin to increase?

Decent Donuts -Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the AVC curve

In the above figure, the most efficient way to produce 10 units is to hire

The steeper the slope of the total product curve, the

Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Rogue can produce 15 chocolate bars per day with one employee, 35 with 2, 50 with 3 and 55 with 4 employees. Which statement is true?

In general, increasing marginal returns occur

As output increases, marginal cost will eventually

-The table above shows some data that describe Tom's T-Shirts' total product when Tom has 1 sewing machine. An increase in the number of workers from 1 to 2 a day increases average product of labor from ________ T shirts per worker and marginal product of labor is ________ T shirts per worker.

How do the marginal and average products of labor affect a firm's marginal and average variable costs in the short run?

-The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. His total cost of producing 6 barrels of pickles is

The marginal cost curve passes through the ________ points of the ________ cost curve and the ________ cost curve.

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

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters

-The table above shows some data that describe Tom's T-Shirts' total product when Tom has 1 sewing machine. An increase in the number of workers from 1 to 2 a day increases average product of labor from T shirts per worker and marginal product of labor is T shirts per worker.

The marginal cost curve passes through the points of the cost curve and the cost curve.