Refer to the table shown. The average fixed cost of producing eight bicycles is: \[\begin{array} { | c | c | } \hline \begin{array} { c } \text { Output } \\ \text { (bicycles per week) } \end{array} & \text { Total cast (dollars) } \\ \hline 1 & 100 \\ \hline 2 & 200 \\ \hline 3 & 310 \\ \hline 4 & 440 \\ \hline 5 & 580 \\ \hline 6 & 730 \\ \hline 7 & 900 \\ \hline 8 & 1,200 \\ \hline \end{array}\]

A) $100. B) $150. C) less or equal to $12.50. D) greater than $20. A) $100. B) $150. C) less or equal to $12.50. D) greater than $20.

Refer to the table shown. If the output of bicycles is 4 per week, the average cost of producing each bicycle is: \[\begin{array} { | c | c | } \hline \begin{array} { c } \text { Output } \\ \text { (bicycles per week) } \end{array} & \text { Total cast (dollars) } \\ \hline 1 & 100 \\ \hline 2 & 200 \\ \hline 3 & 310 \\ \hline 4 & 440 \\ \hline 5 & 580 \\ \hline 6 & 730 \\ \hline 7 & 900 \\ \hline 8 & 1,200 \\ \hline \end{array}\]

A) $100. B) $110. C) $120. D) $140. A) $100. B) $110. C) $120. D) $140.

Refer to the table shown. A firm would be least likely to hire: \[\begin{array} { | c | c | } \hline \text { Number of workers } & \text { Mar ginal product of workers } \\ \hline 1 & 5 \\ \hline 2 & 7 \\ \hline 3 & 8 \\ \hline 4 & 10 \\ \hline 5 & 11 \\ \hline 6 & 7 \\ \hline 7 & 5 \\ \hline 8 & 3 \\ \hline 9 & 0 \\ \hline 10 & - 1 \\ \hline \end{array}\]

A) 6 workers. B) 7 workers. C) 8 workers. D) 9 workers. A) 6 workers. B) 7 workers. C) 8 workers. D) 9 workers.

Refer to the table shown. If the average product is 8, the number of workers is: \[\begin{array} { | c | c | } \hline \text { Number of workers } & \text { Mar ginal product of workers } \\ \hline 1 & 5 \\ \hline 2 & 7 \\ \hline 3 & 8 \\ \hline 4 & 10 \\ \hline 5 & 11 \\ \hline 6 & 7 \\ \hline 7 & 5 \\ \hline 8 & 3 \\ \hline 9 & 0 \\ \hline 10 & - 1 \\ \hline \end{array}\]

A) 2. B) 4. C) 6. D) 8. A) 2. B) 4. C) 6. D) 8.

Exam 11: Production and Cost Analysis I

The law of diminishing marginal productivity implies that identical increases in all inputs eventually will result in smaller incremental increases in total output.

(True/False)

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Question 101

A production table can be used to determine:

(Multiple Choice)

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Question 102

Refer to the table shown. The average fixed cost of producing eight bicycles is: Output (bicycles per week) Total cast (dollars) 1 100 2 200 3 310 4 440 5 580 6 730 7 900 8 1,200

(Multiple Choice)

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Question 103

If total cost is 100, total fixed cost is 30, and output is 20, average variable cost is 3.5.

(True/False)

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Question 104

Refer to the table shown. If the output of bicycles is 4 per week, the average cost of producing each bicycle is: Output (bicycles per week) Total cast (dollars) 1 100 2 200 3 310 4 440 5 580 6 730 7 900 8 1,200

(Multiple Choice)

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Question 105

If the law of diminishing marginal productivity holds true, both average total cost and marginal cost must diminish as output increases.

(True/False)

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Question 106

A business produces 400 items and sells them for $15 each for a total of $6,000. The total cost of producing the items is $4,500 in explicit cost and $1,000 in implicit cost. Economic profit is:

(Multiple Choice)

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Question 107

Refer to the graph shown, which shows total product. At point A:

(Multiple Choice)

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Question 108

A business owner makes 50 items by hand in six hours. She could have earned $10 an hour working for someone else. If each item sells for $5 and the explicit costs total $14, economic profit equals:

(Multiple Choice)

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Question 109

When average total cost is rising, the marginal cost curve must be above the average total cost curve.

(True/False)

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Question 110

The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. Marginal cost is minimized when output equals:

(Multiple Choice)

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Question 111

Which of the following cost curves is most often drawn with a U shape?

(Multiple Choice)

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Question 112

If marginal cost is less than average total cost:

(Multiple Choice)

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Question 113

Refer to the table shown. A firm would be least likely to hire: Number of workers Mar ginal product of workers 1 5 2 7 3 8 4 10 5 11 6 7 7 5 8 3 9 0 10 -1

(Multiple Choice)

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Question 114

When output is 50, fixed costs are $1,000, and variable costs are $2,000, what is the average total cost?

(Multiple Choice)

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Question 115

Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so that all three vans are in constant use, allowing him to increase deliveries per day from 60 to 75. It will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per day:

(Multiple Choice)

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Question 116

Implicit and explicit revenues minus implicit and explicit costs equals:

(Multiple Choice)

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Question 117

Refer to the graph shown. Total fixed cost of producing Q* is represented by:

(Multiple Choice)

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Question 118

Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include:

(Multiple Choice)

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Question 119

Refer to the table shown. If the average product is 8, the number of workers is: Number of workers Mar ginal product of workers 1 5 2 7 3 8 4 10 5 11 6 7 7 5 8 3 9 0 10 -1

(Multiple Choice)

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Question 120

Exam 11: Production and Cost Analysis I

The law of diminishing marginal productivity implies that identical increases in all inputs eventually will result in smaller incremental increases in total output.

A production table can be used to determine:

Refer to the table shown. The average fixed cost of producing eight bicycles is: Output (bicycles per week) Total cast (dollars) 1 100 2 200 3 310 4 440 5 580 6 730 7 900 8 1,200

If total cost is 100, total fixed cost is 30, and output is 20, average variable cost is 3.5.

Refer to the table shown. If the output of bicycles is 4 per week, the average cost of producing each bicycle is: Output (bicycles per week) Total cast (dollars) 1 100 2 200 3 310 4 440 5 580 6 730 7 900 8 1,200

If the law of diminishing marginal productivity holds true, both average total cost and marginal cost must diminish as output increases.

A business produces 400 items and sells them for $15 each for a total of $6,000. The total cost of producing the items is $4,500 in explicit cost and $1,000 in implicit cost. Economic profit is:

Refer to the graph shown, which shows total product. At point A:

A business owner makes 50 items by hand in six hours. She could have earned $10 an hour working for someone else. If each item sells for $5 and the explicit costs total $14, economic profit equals:

When average total cost is rising, the marginal cost curve must be above the average total cost curve.

The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. Marginal cost is minimized when output equals:

Which of the following cost curves is most often drawn with a U shape?

If marginal cost is less than average total cost:

Refer to the table shown. A firm would be least likely to hire: Number of workers Mar ginal product of workers 1 5 2 7 3 8 4 10 5 11 6 7 7 5 8 3 9 0 10 -1

When output is 50, fixed costs are $1,000, and variable costs are $2,000, what is the average total cost?

Implicit and explicit revenues minus implicit and explicit costs equals:

Refer to the graph shown. Total fixed cost of producing Q* is represented by:

Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include:

Refer to the table shown. If the average product is 8, the number of workers is: Number of workers Mar ginal product of workers 1 5 2 7 3 8 4 10 5 11 6 7 7 5 8 3 9 0 10 -1

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