Question 1

In the short run,

Accepted Answer

A) all of the firm's input quantities, including plant size, become adjustable. 
B) firms are not constrained by past decisions. 
C) firms have relatively little opportunity to change production processes. 
D) all of the firm's current commitments come to an end. 
A) all of the firm's input quantities, including plant size, become adjustable. 
B) firms are not constrained by past decisions. 
C) firms have relatively little opportunity to change production processes. 
D) all of the firm's current commitments come to an end.

Question 2

If a firm has increasing returns to scale at all levels of output, the

Accepted Answer

A) slope of its long-run total cost curve is always negative. 
B) slopes of its short-run average cost curves are always negative. 
C) slope of its long-run average cost curve is always negative. 
D) slope of its production function is always negative. 
A) slope of its long-run total cost curve is always negative. 
B) slopes of its short-run average cost curves are always negative. 
C) slope of its long-run average cost curve is always negative. 
D) slope of its production function is always negative.

Question 3

Figure 7-5  
-Which of the following is a variable cost for an airline?

Accepted Answer

A) insurance 
B) property taxes 
C) jet fuel 
D) rent of airport space 
A) insurance 
B) property taxes 
C) jet fuel 
D) rent of airport space

Question 4

The short run is that period during which there are no fixed commitments.

Accepted Answer

A) True 
 B)False

Question 5

The "law" of diminishing returns

Accepted Answer

A) is deduced from the basic biochemical relationship of agricultural theory. 
B) was constructed as the basis of observation during experiments on the impact of fertilizer on output in the 1930s. 
C) is based on regular observations of input-output relationships over the last two centuries. 
D) is borrowed from physical laws related to conversion of matter and energy. 
A) is deduced from the basic biochemical relationship of agricultural theory. 
B) was constructed as the basis of observation during experiments on the impact of fertilizer on output in the 1930s. 
C) is based on regular observations of input-output relationships over the last two centuries. 
D) is borrowed from physical laws related to conversion of matter and energy.

Question 6

The table below gives data on output for a firm in the short run.The firm is able to hire labor and its TPP is given.Compute the APP, MPP, and MRP for labor if the price of the good is fixed at $12 per unit.

Accepted Answer

The answer of The table below gives data on output...

In the short run,

If a firm has increasing returns to scale at all levels of output, the

Figure 7-5 -Which of the following is a variable cost for an airline?

The short run is that period during which there are no fixed commitments.

The "law" of diminishing returns

The table below gives data on output for a firm in the short run.The firm is able to hire labor and its TPP is given.Compute the APP, MPP, and MRP for labor if the price of the good is fixed at $12 per unit.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Output Price and Profit the Importance of Marginal Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Externalities the Environment and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Poverty Inequality and Discrimination

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters

Exam 7: Production Inputs and Cost Building Blocks for Supply Analysis

In the short run,

If a firm has increasing returns to scale at all levels of output, the

Figure 7-5 -Which of the following is a variable cost for an airline?

The short run is that period during which there are no fixed commitments.

The "law" of diminishing returns

The table below gives data on output for a firm in the short run.The firm is able to hire labor and its TPP is given.Compute the APP, MPP, and MRP for labor if the price of the good is fixed at $12 per unit.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Output Price and Profit the Importance of Marginal Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Externalities the Environment and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Poverty Inequality and Discrimination

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters