Refer to the table shown. The average product when eight workers are employed is: $\begin{array}{|c|c|} \hline \text {Number of workers}&\text {Total output}\\ \hline 1 & 4 \\ \hline 2 & 10 \\ \hline 3 & 18 \\ \hline 4 & 28 \\ \hline 5 & 35 \\ \hline 6 & 41 \\ \hline 7 & 45 \\ \hline 8 & 48 \\ \hline 9 & 50 \\ \hline 10 & 49 \\ \hline \end{array}$

A) 3. B) 4. C) 5. D) 6. A) 3. B) 4. C) 5. D) 6.

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

A) never increases. B) decreases and then increases. C) increases and then decreases. D) never decreases. A) never increases. B) decreases and then increases. C) increases and then decreases. D) never decreases.

Refer to the table shown. If seven workers are employed, total output equals: $\begin{array}{|c|c|} \hline \text {Number of workers}& \text {Mar ginal product of workers}\\ \hline 1 & 5 \\ \hline 2 & 7 \\ \hline 3 & 8 \\ \hline 4 & 10 \\ \hline 5 & 11 \\ \hline 6 & 7 \\ \hline 7 & 5 \\ \hline 8 & 3 \\ \hline 9 & 0 \\ \hline 10 & -1 \\ \hline \end{array}$

A) 5. B) 35. C) 53. D) 56. A) 5. B) 35. C) 53. D) 56.

A) exist only in the short run. B) change as output changes. C) are positive even when a firm produces no output. D) do not vary with output. A) exist only in the short run. B) change as output changes. C) are positive even when a firm produces no output. D) do not vary with output.

Exam 11: Production and Cost Analysis I

If you have already signed up for a plan with your cell phone company that gives you 4,000 free minutes for $39.99 per month with a cost of $0.35 per minute for any time exceeding the limit, your marginal cost curve is:

(Multiple Choice)

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Question 141

A firm's total variable cost increases from $4,000 to $4,020 as the firm increases its output from 400 to 401 units. What is the marginal cost of producing the 401st unit?

(Multiple Choice)

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Question 142

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, accounting profit for 50 items is:

(Multiple Choice)

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Question 143

The reason economists and accountants have problems using cost analysis in the real world is that:

(Multiple Choice)

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Question 144

A regional airline owns 10 aircraft and employs 20 pilots. The airline makes an average of three trips per day with each of its 10 aircraft. The aircraft and their ground crews are idle part of the day. Minimum rest requirements for its pilots mean that if the airline wants to increase its flights, it must hire more pilots. The decision to hire more pilots is:

(Multiple Choice)

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Question 145

Refer to the table shown. The average product when eight workers are employed is: 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 146

The minimum point of the average variable cost curve is reached at the output level where:

(Multiple Choice)

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Question 147

The average variable cost curve is a mirror image of the:

(Multiple Choice)

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Question 148

Implicit cost refers to:

(Multiple Choice)

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Question 149

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

(Multiple Choice)

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Question 150

Refer to the table shown. Marginal cost: 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 151

A business produces eight items and sells them for $25 each. The total cost of producing the items is $190 for explicit costs and $200 for implicit costs. Accounting profit is:

(Multiple Choice)

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Question 152

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

(Multiple Choice)

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Question 153

Refer to the graph shown. The line segment that represents average variable costs of producing Q* is:

(Multiple Choice)

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Question 154

At very high levels of output, total cost tends to:

(Multiple Choice)

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Question 155

Refer to the table shown. If seven workers are employed, total output equals: 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 156

Can accounting profit be positive while economic profits are negative?

(Multiple Choice)

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Question 157

Variable costs:

(Multiple Choice)

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Question 158

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

(Multiple Choice)

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Question 159

The increase in output obtained by hiring an additional worker is known as:

(Multiple Choice)

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Question 160

Exam 11: Production and Cost Analysis I

If you have already signed up for a plan with your cell phone company that gives you 4,000 free minutes for $39.99 per month with a cost of $0.35 per minute for any time exceeding the limit, your marginal cost curve is:

A firm's total variable cost increases from $4,000 to $4,020 as the firm increases its output from 400 to 401 units. What is the marginal cost of producing the 401st unit?

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, accounting profit for 50 items is:

The reason economists and accountants have problems using cost analysis in the real world is that:

Refer to the table shown. The average product when eight workers are employed is: 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 minimum point of the average variable cost curve is reached at the output level where:

The average variable cost curve is a mirror image of the:

Implicit cost refers to:

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

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

A business produces eight items and sells them for $25 each. The total cost of producing the items is $190 for explicit costs and $200 for implicit costs. Accounting profit is:

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

Refer to the graph shown. The line segment that represents average variable costs of producing Q* is:

At very high levels of output, total cost tends to:

Refer to the table shown. If seven workers are employed, total output equals: 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

Can accounting profit be positive while economic profits are negative?

Variable costs:

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

The increase in output obtained by hiring an additional worker is known as:

Economics and Economic Reasoning

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