Exam 7: Producers in the Short Run

Suppose a firm producing digital cameras is operating such that marginal costs are higher than average costs. If the firm produces one more camera, average costs will

A firm's depreciation costs

The period of time over which the firm can vary any of its inputs for a given production technologyis called the

Consider a firm in the short run. If the AP curve is rising, then the MP curve

An example of "real" capital is

The period of time over which all factors of production and technology are variable is known as the

An example of debt financing for any form of business organization is

The choices listed below involve costs to the firm. For which is the implicit cost potentially different than its explicit cost?

The opportunity cost of any factor of production is

Which of the following factors of production is most likely to be variable in the short run?

Which of the following items is part of a firm's financial capital as distinct from its real capital?

Consider a firm in the short run. When the total-product curve is increasing at an increasing rate

When a corporation issues a bond

The law of diminishing returns states that if increasing quantities of a variable factor are applied to a given quantity of fixed factors, then

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4 -Refer to Table 7-4. Diminishing marginal productivity of labour is first observed when the firm changes the amount of labour hired from

The diagram below shows some short-run cost curves for a firm. FIGURE 7-2 -Refer to Figure 7-2. Which of the following choices correctly identifies the cost curves in part (i) ofthe figure?

A limited partnership differs from an ordinary partnership by

The point of diminishing marginal productivity is the point where

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4 -Average, marginal, and total product curves

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3.