The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. \[\begin{array}{l} \begin{array} { | c | c | } \hline \text { Labour per unit of time } & \text { Total Output } \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}\\ \text { TABLE } 7 - 4 \end{array}\] -Refer to Table 7- 4. Average variable costs for 175 units of output is approximately

A) 25 cents. B) 32 cents. C) 43 cents. D) 57 cents. E) $1.00. A) 25 cents. B) 32 cents. C) 43 cents. D) 57 cents. E) $1.00.

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. $\begin{array}{|l|l|} \hline \begin{array}{l} \text { Labour per unit of } \\ \text { time } \end{array} & \text { Total Output } \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}$ $\text { TABLE 7- } 4$ -Refer to Table 7- 4. Diminishing marginal productivity of labour is first observed when the firm changes the amount of labour hired from

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

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume that the wage per unit of labour is $10 and the cost of the capital is $50. \[\begin{array}{l} \begin{array} { | l | l | } \hline \text { Lab our per period } & \text { T ot al Output per period } \\ \hline 0 & 0 \\ \hline 1 & 10 \\ \hline 2 & 30 \\ \hline 3 & 90 \\ \hline 4 & 132 \\ \hline 5 & 150 \\ \hline \end{array}\\ \text { TABLE 7- } 3 \end{array}\] -Refer to Table 7- 3. The average total cost for 150 units of output is approximately

A) 40 cents. B) 67 cents. C) $1.50. D) 80 cents. E) 33 cents. A) 40 cents. B) 67 cents. C) $1.50. D) 80 cents. E) 33 cents.

The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Output } & \begin{array} { l } \text { Marginal } \\ \text { Cost } \end{array} & \begin{array} { l } \text { Average } \\ \text { Variable Cost } \end{array} \\ \hline 50 & 60 & 140 \\ \hline 70 & 45 & 115 \\ \hline 90 & 35 & 95 \\ \hline 110 & 30 & 80 \\ \hline 130 & 35 & 65 \\ \hline 150 & 60 & 60 \\ \hline 170 & 105 & 65 \\ \hline 190 & 180 & 75 \\ \hline 210 & 230 & 90 \\ \hline 230 & 290 & 110 \\ \hline \end{array}\\ \text { TABLE 7- } 6 \end{array}\] -Refer to Table 7- 6. Suppose there are no fixed costs. The firm reaches it's capacity level of output when its output is equal to units.

A) 110 B) 150 C) 210 D) 190 E) 50 A) 110 B) 150 C) 210 D) 190 E) 50

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. \[\begin{array}{l} \begin{array} { | l | l | } \hline \begin{array} { l } \text { Labour per unit of } \\ \text { time } \end{array} & \text { Total Output } \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}\\ \text { TABLE 7- } 4 \end{array}\] -Refer to Table 7- 4. The marginal product of labour is at its maximum when the firm changes the amount of labour hired from

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

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. \[\begin{array}{l} \begin{array} { | c | c | } \hline \text { Labour per unit of time } & \text { Total Output } \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}\\ \text { TABLE } 7 - 4 \end{array}\] -Refer to Table 7- 4. Marginal product of labour begins decreasing with the unit of labour hired. Average product of labour begins decreasing with the unit of labour hired.

A) 4th; 5th B) 3rd; 4th C) 4th; 3rd D) 3rd; 2nd E) 2nd; 3rd A) 4th; 5th B) 3rd; 4th C) 4th; 3rd D) 3rd; 2nd E) 2nd; 3rd

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. \[\begin{array}{l} \begin{array} { | c | c | } \hline \text { Labour per unit of time } & \text { Total Output } \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}\\ \text { TABLE } 7 - 4 \end{array}\] -Refer to Table 7- 4. The total fixed cost of producing 305 units of output is

A) $100. B) $125. C) $112.50. D) $225 E) $305. A) $100. B) $125. C) $112.50. D) $225 E) $305.

Exam 7: Producers in the Short Run

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7-4 -Refer to Table 7- 4. Average variable costs for 175 units of output is approximately

(Multiple Choice)

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Question 21

Which of the following statements describes an advantage to the owner of a single proprietorship?

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Question 22

FIGURE 7- 1 -Refer to Figure 7- 1. Total product is increasing at an increasing rate

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Question 23

Suppose a firm is producing 100 units of output, incurring a total cost of $10 000 and total variable cost of $6000. It can be concluded that average fixed cost is

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Question 24

Consider a firm in the short run. Average product is at its maximum when

(Multiple Choice)

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Question 25

A firm's capacity is defined as the level of output where

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Question 26

When a firm's marginal cost is rising, we know that

(Multiple Choice)

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Question 27

Marginal cost is defined as the

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Question 28

The period of time over which the firm can vary any of its inputs for a given production technology is called the

(Multiple Choice)

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Question 29

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 $\text { TABLE 7- } 4$ -Refer to Table 7- 4. Diminishing marginal productivity of labour is first observed when the firm changes the amount of labour hired from

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Question 30

Consider a firm in the short run. When the total- product curve is increasing at an increasing rate

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Question 31

The opportunity cost of money that a firm's owner has invested in the firm is an example of

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Question 32

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume that the wage per unit of labour is $10 and the cost of the capital is $50. Lab our per period T ot al Output per period 0 0 1 10 2 30 3 90 4 132 5 150 TABLE 7- 3 -Refer to Table 7- 3. The average total cost for 150 units of output is approximately

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Question 33

A firm that maximizes its profits by producing a certain level of output must also

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Question 34

The relationship between factors of production used in the production process and the resulting output is called a(n)

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Question 35

The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. Output Marginal Cost Average Variable Cost 50 60 140 70 45 115 90 35 95 110 30 80 130 35 65 150 60 60 170 105 65 190 180 75 210 230 90 230 290 110 TABLE 7- 6 -Refer to Table 7- 6. Suppose there are no fixed costs. The firm reaches it's capacity level of output when its output is equal to units.

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Question 36

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7- 4 -Refer to Table 7- 4. The marginal product of labour is at its maximum when the firm changes the amount of labour hired from

(Multiple Choice)

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Question 37

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7-4 -Refer to Table 7- 4. Marginal product of labour begins decreasing with the unit of labour hired. Average product of labour begins decreasing with the unit of labour hired.

(Multiple Choice)

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Question 38

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7-4 -Refer to Table 7- 4. The total fixed cost of producing 305 units of output is

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Question 39

An example of debt financing for any form of business organization is

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Question 40

Which of the following statements describes an advantage to the owner of a single proprietorship?

FIGURE 7- 1 -Refer to Figure 7- 1. Total product is increasing at an increasing rate

Suppose a firm is producing 100 units of output, incurring a total cost of $10 000 and total variable cost of $6000. It can be concluded that average fixed cost is

Consider a firm in the short run. Average product is at its maximum when

A firm's capacity is defined as the level of output where

When a firm's marginal cost is rising, we know that

Marginal cost is defined as the

The period of time over which the firm can vary any of its inputs for a given production technology is called the

Consider a firm in the short run. When the total- product curve is increasing at an increasing rate

The opportunity cost of money that a firm's owner has invested in the firm is an example of

A firm that maximizes its profits by producing a certain level of output must also

The relationship between factors of production used in the production process and the resulting output is called a(n)

An example of debt financing for any form of business organization is

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