Refer to the table shown. At what level of employment is the marginal product of labor 7? $\begin{array}{|c|c|} \hline \text {Number of workers}&\text {Total output}\\ \hline 1 & 4 \\ \hline 2 & 10 \\ \hline 3 & 18 \\ \hline 4 & 28 \\ \hline 5 & 35 \\ \hline 6 & 41 \\ \hline 7 & 45 \\ \hline 8 & 48 \\ \hline 9 & 50 \\ \hline 10 & 49 \\ \hline \end{array}$

A) 2 B) 4 C) 5 D) 7 A) 2 B) 4 C) 5 D) 7

Refer to the table shown. The average total cost of producing 5 units of output is: $\begin{array}{|c|c|} \hline \text { Units of output } & \text { Total cost } \\ \hline 0 & 5 \\ \hline 1 & 11 \\ \hline 2 & 16 \\ \hline 3 & 20 \\ \hline 4 & 23 \\ \hline 5 & 25 \\ \hline 6 & 26 \\ \hline \end{array}$

A) $5. B) $10. C) $15. D) $25. A) $5. B) $10. C) $15. D) $25.

A) do not exist in the long run. B) are the only costs that exist in the long run. C) do not exist in the short run. D) are the only costs that exist in the short run. A) do not exist in the long run. B) are the only costs that exist in the long run. C) do not exist in the short run. D) are the only costs that exist in the short run.

Refer to the table shown. The average variable cost of producing 5 units of output is: $\begin{array}{|c|c|} \hline \text { Units of output } & \text { Total cost } \\ \hline 0 & 5 \\ \hline 1 & 11 \\ \hline 2 & 16 \\ \hline 3 & 20 \\ \hline 4 & 23 \\ \hline 5 & 25 \\ \hline 6 & 26 \\ \hline \end{array}$

A) $2. B) $3. C) $4. D) $5. A) $2. B) $3. C) $4. D) $5.

A) all inputs are variable. B) firms can use any input combination they want. C) firms can choose among all possible production techniques. D) some inputs are fixed. A) all inputs are variable. B) firms can use any input combination they want. C) firms can choose among all possible production techniques. D) some inputs are fixed.

Refer to the table shown. The firm would definitely not hire: $\begin{array}{|c|c|} \hline \text {Number of workers}&\text {Total output}\\ \hline 1 & 4 \\ \hline 2 & 10 \\ \hline 3 & 18 \\ \hline 4 & 28 \\ \hline 5 & 35 \\ \hline 6 & 41 \\ \hline 7 & 45 \\ \hline 8 & 48 \\ \hline 9 & 50 \\ \hline 10 & 49 \\ \hline \end{array}$

A) 5 workers. B) 7 workers. C) 9 workers. D) 10 workers. A) 5 workers. B) 7 workers. C) 9 workers. D) 10 workers.

Exam 11: Production and Cost Analysis I

Refer to the table shown. At what level of employment is the marginal product of labor 7? Number of workers Total output 1 4 2 10 3 18 4 28 5 35 6 41 7 45 8 48 9 50 10 49

(Multiple Choice)

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Question 21

The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. The average total cost curve is represented by which curve?

(Multiple Choice)

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Question 22

Accounting profit and economic profit differ because economic profit does not take into account opportunity cost.

(True/False)

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Question 23

Suppose you operate a factory that produces gadgets. Your current output is 1,000 gadgets. If your fixed cost is $10,000 and your total cost is $50,000, the:

(Multiple Choice)

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Question 24

The U shape of the average total cost curve is because:

(Multiple Choice)

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Question 25

Refer to the table shown. The average total cost of producing 5 units of output is: Units of output Total cost 0 5 1 11 2 16 3 20 4 23 5 25 6 26

(Multiple Choice)

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Question 26

Refer to the following graph. This set of cost curves is:

(Multiple Choice)

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Question 27

Variable costs:

(Multiple Choice)

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Question 28

Long-run decisions are:

(Multiple Choice)

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Question 29

Refer to the table shown. The average variable cost of producing 5 units of output is: Units of output Total cost 0 5 1 11 2 16 3 20 4 23 5 25 6 26

(Multiple Choice)

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Question 30

Refer to the graph shown. Within which section(s) of the production function is marginal product increasing?

(Multiple Choice)

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Question 31

At the level of output where marginal product begins to fall, marginal costs will:

(Multiple Choice)

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Question 32

The marginal cost curve:

(Multiple Choice)

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Question 33

In the short run:

(Multiple Choice)

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Question 34

Refer to the following graph. This set of cost curves is:

(Multiple Choice)

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Question 35

In the long run all inputs are variable; in the short run some inputs are fixed.

(True/False)

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Question 36

The law of diminishing marginal productivity implies that the marginal product of a variable input:

(Multiple Choice)

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Question 37

Refer to the table shown. The firm would definitely not hire: Number of workers Total output 1 4 2 10 3 18 4 28 5 35 6 41 7 45 8 48 9 50 10 49

(Multiple Choice)

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Question 38

Robert withdrew $100,000 from an account that paid 10 percent annual interest and used the funds to purchase real estate. After one year he sold the property for $120,000. The accounting profit on this deal was:

(Multiple Choice)

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Question 39

Which of the following is an example of a short-run decision?

(Multiple Choice)

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Question 40

Exam 11: Production and Cost Analysis I

Refer to the table shown. At what level of employment is the marginal product of labor 7? Number of workers Total output 1 4 2 10 3 18 4 28 5 35 6 41 7 45 8 48 9 50 10 49

The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. The average total cost curve is represented by which curve?

Accounting profit and economic profit differ because economic profit does not take into account opportunity cost.

Suppose you operate a factory that produces gadgets. Your current output is 1,000 gadgets. If your fixed cost is $10,000 and your total cost is $50,000, the:

The U shape of the average total cost curve is because:

Refer to the table shown. The average total cost of producing 5 units of output is: Units of output Total cost 0 5 1 11 2 16 3 20 4 23 5 25 6 26

Refer to the following graph. This set of cost curves is:

Variable costs:

Long-run decisions are:

Refer to the table shown. The average variable cost of producing 5 units of output is: Units of output Total cost 0 5 1 11 2 16 3 20 4 23 5 25 6 26

Refer to the graph shown. Within which section(s) of the production function is marginal product increasing?

At the level of output where marginal product begins to fall, marginal costs will:

The marginal cost curve:

In the short run:

Refer to the following graph. This set of cost curves is:

In the long run all inputs are variable; in the short run some inputs are fixed.

The law of diminishing marginal productivity implies that the marginal product of a variable input:

Refer to the table shown. The firm would definitely not hire: Number of workers Total output 1 4 2 10 3 18 4 28 5 35 6 41 7 45 8 48 9 50 10 49

Robert withdrew $100,000 from an account that paid 10 percent annual interest and used the funds to purchase real estate. After one year he sold the property for $120,000. The accounting profit on this deal was:

Which of the following is an example of a short-run decision?

Economics and Economic Reasoning

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Using Supply and Demand

Describing Supply and Demand: Elasticities

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Market Failure Versus Government Failure

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Production and Cost Analysis II

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Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

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