Question 1

If STC = 3q2 + 7q + 15, then:

Accepted Answer

A) marginal cost is a straight line. 
B) marginal cost is 6q + 15. 
C) average cost is 3q + 7. 
D) marginal cost is downward sloping. 
A) marginal cost is a straight line. 
B) marginal cost is 6q + 15. 
C) average cost is 3q + 7. 
D) marginal cost is downward sloping.

Question 2

A firm faces a cost function of C(y)= 2000 + 25y + 10 y2 . What is the average variable cost of producing 200 units? what is the marginal cost?

Accepted Answer

The 2000 represents fixed costs so the a

Question 3

A variable input in a fixed- proportions production function exhibits:

Accepted Answer

A) diminishing marginal productivity everywhere. 
B) positive, constant, or zero marginal productivity. 
C) diminishing and then constant marginal productivity. 
D) constant and then falling marginal productivity. 
A) diminishing marginal productivity everywhere. 
B) positive, constant, or zero marginal productivity. 
C) diminishing and then constant marginal productivity. 
D) constant and then falling marginal productivity.

Question 4

Which of the following cost curves can never have a positive slope?

Accepted Answer

A) AFC 
B) ATC 
C) AVC 
D) SMC 
A) AFC 
B) ATC 
C) AVC 
D) SMC

Question 5

Which of the following is not true of fixed costs?

Accepted Answer

A) Average fixed costs diminish as output increases. 
B) Fixed costs increase AVC. 
C) Fixed costs are the difference between SAC and AVC. 
D) Fixed costs have no effect on marginal cost. 
A) Average fixed costs diminish as output increases. 
B) Fixed costs increase AVC. 
C) Fixed costs are the difference between SAC and AVC. 
D) Fixed costs have no effect on marginal cost.

Question 6

In the short- run, a firm increases its labour input from 10 to 11 workers and output increases from 500 to 560 units. Which of the following statements is correct?

Accepted Answer

A) The marginal product of the 11th worker is 50. 
B) The average product of 11 workers is 60. 
C) The marginal product of the 11th worker is 60. 
D) The average product of 11 workers is 50. 
A) The marginal product of the 11th worker is 50. 
B) The average product of 11 workers is 60. 
C) The marginal product of the 11th worker is 60. 
D) The average product of 11 workers is 50.

Question 7

Suppose TP(L)= 5L2 + 40. AP(L)is:

Accepted Answer

A) 5L + 40/L. 
B) 10L + 40. 
C) 5L. 
D) 5L + 40. 
A) 5L + 40/L. 
B) 10L + 40. 
C) 5L. 
D) 5L + 40.

Question 8

If you pay $35 for a sticker that entitles you to park on campus for 35 weeks of the year, the marginal parking cost to you of parking your car on campus on any given weekday is:

Accepted Answer

A) zero. 
B) $35. 
C) $2. 
D) $1. 
A) zero. 
B) $35. 
C) $2. 
D) $1.

Question 9

Suppose TP(L)=5L2+40. MP(L)is:

Accepted Answer

A) 10L. 
B) 10L + 40. 
C) 5L + 40. 
D) 10L + 40/L. 
A) 10L. 
B) 10L + 40. 
C) 5L + 40. 
D) 10L + 40/L.

Question 10

If land suitable for growing corn is also suitable for growing soybeans, the discovery that soybean oil prevents cancer will:

Accepted Answer

A) increase the supply (curve)of soybeans. 
B) decrease the demand for corn. 
C) have no effect on the cost of growing corn. 
D) raise the cost of growing corn. 
A) increase the supply (curve)of soybeans. 
B) decrease the demand for corn. 
C) have no effect on the cost of growing corn. 
D) raise the cost of growing corn.

Question 11

A variable- proportions production function is one in which:

Accepted Answer

A) increasing the use of an input requires decreasing another by the same amount. 
B) more of one input can be substituted for less of another. 
C) isoquants are smooth. 
D) inputs are perfect substitutes. 
A) increasing the use of an input requires decreasing another by the same amount. 
B) more of one input can be substituted for less of another. 
C) isoquants are smooth. 
D) inputs are perfect substitutes.

Question 12

A production function measures how:

Accepted Answer

A) an individual maximizes utility. 
B) a firm minimizes cost. 
C) a firm transforms inputs into output. 
D) a firm transforms output into input. 
A) an individual maximizes utility. 
B) a firm minimizes cost. 
C) a firm transforms inputs into output. 
D) a firm transforms output into input.

Question 13

Which of the following statements is necessarily true for a production process that employs one variable input?

Accepted Answer

A) If AP is rising, SAC is falling. 
B) If MP is zero, SMC equals AVC. 
C) If AP is falling, SMC is falling. 
D) The AVC function is U- shaped. 
A) If AP is rising, SAC is falling. 
B) If MP is zero, SMC equals AVC. 
C) If AP is falling, SMC is falling. 
D) The AVC function is U- shaped.

Question 14

If a firm has STC = 7q3 + 8q2 + 4, then SMC is:

Accepted Answer

A) 7q2 + 8q + 4. 
B) 7q3 + 8q2. 
C) 21q2 + 16q. 
D) 7q3 + 8q2 + 4. 
A) 7q2 + 8q + 4. 
B) 7q3 + 8q2. 
C) 21q2 + 16q. 
D) 7q3 + 8q2 + 4.

If STC = 3q²+ 7q + 15, then:

A firm faces a cost function of C(y)= 2000 + 25y + 10 y². What is the average variable cost of producing 200 units? what is the marginal cost?

A variable input in a fixed- proportions production function exhibits:

Which of the following cost curves can never have a positive slope?

Which of the following is not true of fixed costs?

In the short- run, a firm increases its labour input from 10 to 11 workers and output increases from 500 to 560 units. Which of the following statements is correct?

Suppose TP(L)= 5L²+ 40. AP(L)is:

If you pay $35 for a sticker that entitles you to park on campus for 35 weeks of the year, the marginal parking cost to you of parking your car on campus on any given weekday is:

Suppose TP(L)=5L²+40. MP(L)is:

If land suitable for growing corn is also suitable for growing soybeans, the discovery that soybean oil prevents cancer will:

A variable- proportions production function is one in which:

A production function measures how:

Which of the following statements is necessarily true for a production process that employs one variable input?

If a firm has STC = 7q³+ 8q²+ 4, then SMC is:

Microeconomics: a Working Methodology

A Theory of Preferences

Demand Theory

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Introduction to Game Theory

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters

Exam 6: Production Cost: One Variable Input

If STC = 3q2 + 7q + 15, then:

A firm faces a cost function of C(y)= 2000 + 25y + 10 y2 . What is the average variable cost of producing 200 units? what is the marginal cost?

A variable input in a fixed- proportions production function exhibits:

Which of the following cost curves can never have a positive slope?

Which of the following is not true of fixed costs?

In the short- run, a firm increases its labour input from 10 to 11 workers and output increases from 500 to 560 units. Which of the following statements is correct?

Suppose TP(L)= 5L2 + 40. AP(L)is:

If you pay $35 for a sticker that entitles you to park on campus for 35 weeks of the year, the marginal parking cost to you of parking your car on campus on any given weekday is:

Suppose TP(L)=5L2+40. MP(L)is:

If land suitable for growing corn is also suitable for growing soybeans, the discovery that soybean oil prevents cancer will:

A variable- proportions production function is one in which:

A production function measures how:

Which of the following statements is necessarily true for a production process that employs one variable input?

If a firm has STC = 7q3 + 8q2 + 4, then SMC is:

Microeconomics: a Working Methodology

A Theory of Preferences

Demand Theory

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Introduction to Game Theory

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters

If STC = 3q²+ 7q + 15, then:

A firm faces a cost function of C(y)= 2000 + 25y + 10 y². What is the average variable cost of producing 200 units? what is the marginal cost?

Suppose TP(L)= 5L²+ 40. AP(L)is:

Suppose TP(L)=5L²+40. MP(L)is:

If a firm has STC = 7q³+ 8q²+ 4, then SMC is: