Question 1

At that amount of output where diminishing marginal returns first sets in,

Accepted Answer

A) average product begins to decrease. 
B) total product begins to decrease. 
C) marginal cost begins to decrease. 
D) marginal product begins to decrease. 
E) All of the above. 
A) average product begins to decrease. 
B) total product begins to decrease. 
C) marginal cost begins to decrease. 
D) marginal product begins to decrease. 
E) All of the above.

Question 2

Use the figure below to answer the following questions.
   Figure 11.3.2
-Refer to Figure 11.3.2,which illustrates the short-run average and marginal cost curves.The marginal cost curve is curve

Accepted Answer

A) A. 
B) B. 
C) C. 
D) D. 
E) none of the above. 
A) A. 
B) B. 
C) C. 
D) D. 
E) none of the above.

Question 3

When the demand for electricity peaks during the hottest days of summer,Hydro One 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 operating in the

Accepted Answer

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

Question 4

Use the table below to answer the following questions.
Table 11.2.2
 $\begin{array}{lc}\hline \text { Labour } & \text { Output } \
\text { (workers per day) } & \text { (teapots per day) }\
\hline 0 & 0 \
1 & 2 \
2 & 8 \
3 & 12 \
4 & 15 \
5 & 16\\hline 
\end{array}$
-Refer to Table 11.2.2 which gives Tania's total product schedule.The marginal product when the number of workers increases from 2 to 3 is

Accepted Answer

A) 1 teapot. 
B) 2 teapots. 
C) 3 teapots. 
D) 4 teapots. 
E) 3.75 teapots. 
A) 1 teapot. 
B) 2 teapots. 
C) 3 teapots. 
D) 4 teapots. 
E) 3.75 teapots.

Question 5

Suppose a candy manufacturer can triple its production of fudge by doubling its production facility for making fudge.This indicates the presence of

Accepted Answer

A) constant returns to scale. 
B) economies of scale. 
C) diseconomies of scale. 
D) market constraints. 
E) the law of diminishing returns. 
A) constant returns to scale. 
B) economies of scale. 
C) diseconomies of scale. 
D) market constraints. 
E) the law of diminishing returns.

Question 6

Use the table below to answer the following questions.
Table 11.2.3
 $$\begin{array} { c c c c } 
\hline\begin{array} { c } 
\text { Labour } \
\text { (workers per } \
\text { week) }
\end{array} & \begin{array} { c } 
\text { Output } \
\text { (rubbers boats per } \
\text { week) }
\end{array} & \begin{array} { c } 
\text { Marginal Product } \
\text { (rubber boats per } \
\text { worker) }
\end{array} & \begin{array} { c } 
\text { Average Product } \
\text { (rubber boats per } \
\text { worker) }
\end{array} \
\hline 0 & 0 & 1 & \
1&1&1&1\2&2&2&1\3&4&A&C\4 & 7&4&C\5&11&B&2.2\6&14&2&B\7&16&1&2.28\
8&17&1&2.13\9&18&0&2\10&18&&1.8
\end{array}$$
-Refer to Table 11.2.3.The value of A is

Accepted Answer

A) 1.75. 
B) 2. 
C) 3. 
D) 7. 
E) 4. 
A) 1.75. 
B) 2. 
C) 3. 
D) 7. 
E) 4.

Question 7

Which of the following quotes best illustrates the idea of fixed cost?

Accepted Answer

A) "As we increase output,per-unit costs fall." 
B) "My primary source of overhead cost is the cost of running the head office." 
C) "If I need to,I can negotiate more overtime with my work force to meet unexpected orders." 
D) "If I double the number of workers and trucks,I get only 80 percent more packages delivered." 
E) None of the above. 
A) "As we increase output,per-unit costs fall." 
B) "My primary source of overhead cost is the cost of running the head office." 
C) "If I need to,I can negotiate more overtime with my work force to meet unexpected orders." 
D) "If I double the number of workers and trucks,I get only 80 percent more packages delivered." 
E) None of the above.

Question 8

Use the figure below to answer the following question.
   Figure 11.2.2
-Refer to Figure 11.2.2 which shows Tania's average product curve and marginal product curve.The point of maximum average product is point

Accepted Answer

A) B. 
B) C. 
C) D. 
D) E. 
E) F. 
A) B. 
B) C. 
C) D. 
D) E. 
E) F.

Question 9

Which one of the following statements is false?

Accepted Answer

A) Total variable cost plus total fixed cost equals total cost. 
B) Marginal cost equals the change in total cost divided by the change in output. 
C) Average total cost is calculated by dividing total cost by the level of output. 
D) The average cost curve is U-shaped. 
E) The total cost curve is U-shaped. 
A) Total variable cost plus total fixed cost equals total cost. 
B) Marginal cost equals the change in total cost divided by the change in output. 
C) Average total cost is calculated by dividing total cost by the level of output. 
D) The average cost curve is U-shaped. 
E) The total cost curve is U-shaped.

Question 10

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 11

Which of the following are correct? According to the law of diminishing returns, (1)marginal product eventually rises.
(2)marginal product eventually falls.
(3)marginal cost eventually rises.
(4)marginal cost eventually falls.

Accepted Answer

A) (1)and (3) 
B) (1)and (4) 
C) (2)and (3) 
D) (2)and (4) 
E) (4) 
A) (1)and (3) 
B) (1)and (4) 
C) (2)and (3) 
D) (2)and (4) 
E) (4)

Question 12

The average product of labour equals

Accepted Answer

A) the slope of the total product curve. 
B) the slope of the marginal product curve. 
C) the increase in total product divided by the increase in labour employed. 
D) total product divided by the quantity of labour employed. 
E) the difference between the total product and the marginal product of labour. 
A) the slope of the total product curve. 
B) the slope of the marginal product curve. 
C) the increase in total product divided by the increase in labour employed. 
D) total product divided by the quantity of labour employed. 
E) the difference between the total product and the marginal product of labour.

Question 13

Suppose a firm increases the quantity of labour employed from 5 to 6 workers,and as a result,the firm's total output increases from 100 units to 400 units.The marginal product of the sixth worker is

Accepted Answer

A) 50 units. 
B) 100 units. 
C) 200 units. 
D) 300 units. 
E) 66.67 units. 
A) 50 units. 
B) 100 units. 
C) 200 units. 
D) 300 units. 
E) 66.67 units.

At that amount of output where diminishing marginal returns first sets in,

Use the figure below to answer the following questions. Figure 11.3.2 -Refer to Figure 11.3.2,which illustrates the short-run average and marginal cost curves.The marginal cost curve is curve

Use the table below to answer the following questions. Table 11.2.2 Labour Output (workers per day) (teapots per day) 0 0 1 2 2 8 3 12 4 15 5 16 -Refer to Table 11.2.2 which gives Tania's total product schedule.The marginal product when the number of workers increases from 2 to 3 is

Suppose a candy manufacturer can triple its production of fudge by doubling its production facility for making fudge.This indicates the presence of

Which of the following quotes best illustrates the idea of fixed cost?

Use the figure below to answer the following question. Figure 11.2.2 -Refer to Figure 11.2.2 which shows Tania's average product curve and marginal product curve.The point of maximum average product is point

Which one of the following statements is false?

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

Which of the following are correct? According to the law of diminishing returns, (1)marginal product eventually rises. (2)marginal product eventually falls. (3)marginal cost eventually rises. (4)marginal cost eventually falls.

The average product of labour equals

Suppose a firm increases the quantity of labour employed from 5 to 6 workers,and as a result,the firm's total output increases from 100 units to 400 units.The marginal product of the sixth 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

Organizing Production

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

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Economic Inequality

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Exam 11: Output and Costs

At that amount of output where diminishing marginal returns first sets in,

Use the figure below to answer the following questions. Figure 11.3.2 -Refer to Figure 11.3.2,which illustrates the short-run average and marginal cost curves.The marginal cost curve is curve

Use the table below to answer the following questions. Table 11.2.2 Labour Output (workers per day) (teapots per day) 0 0 1 2 2 8 3 12 4 15 5 16 -Refer to Table 11.2.2 which gives Tania's total product schedule.The marginal product when the number of workers increases from 2 to 3 is

Suppose a candy manufacturer can triple its production of fudge by doubling its production facility for making fudge.This indicates the presence of

Which of the following quotes best illustrates the idea of fixed cost?

Use the figure below to answer the following question. Figure 11.2.2 -Refer to Figure 11.2.2 which shows Tania's average product curve and marginal product curve.The point of maximum average product is point

Which one of the following statements is false?

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

Which of the following are correct? According to the law of diminishing returns, (1)marginal product eventually rises. (2)marginal product eventually falls. (3)marginal cost eventually rises. (4)marginal cost eventually falls.

The average product of labour equals

Suppose a firm increases the quantity of labour employed from 5 to 6 workers,and as a result,the firm's total output increases from 100 units to 400 units.The marginal product of the sixth 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

Organizing Production

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters