Question 1

(Table: Production of Bagels) Look at the table Production of Bagels.The marginal product of the third worker is bagels.

Accepted Answer

A) 9,000. 
B) 10,000. 
C) 12,000. 
D) 15,000. 
A) 9,000. 
B) 10,000. 
C) 12,000. 
D) 15,000.

Question 2

Figure: Short-Run Costs   (Figure: Short-Run Costs) Look at the figure Short-Run Costs.B is the cost curve.

Accepted Answer

A) average total 
B) average variable 
C) marginal 
D) total 
A) average total 
B) average variable 
C) marginal 
D) total

Question 3

(Table: Cost Data) Look at the table Cost Data, which shows data for a designer purse factory.The average total cost of producing 4 purses is:

Accepted Answer

A) $12.50 
B) $47.50 
C) $50 
D) $82.50 
A) $12.50 
B) $47.50 
C) $50 
D) $82.50

Question 4

When diminishing returns exist, then the marginal cost curve is upward-sloping.False

Accepted Answer

A) True 
 B)False

Question 5

The curve that illustrates the relationship between output and average total cost when the fixed cost has been chosen to minimize average total cost for each level of output is the:

Accepted Answer

A) short-run average total cost curve. 
B) long-run average total cost curve. 
C) marginal cost curve. 
D) total product curve. 
A) short-run average total cost curve. 
B) long-run average total cost curve. 
C) marginal cost curve. 
D) total product curve.

Question 6

A is an organization that produces goods or services for sale.

Accepted Answer

A) production function 
B) firm 
C) variable input 
D) fixed input 
A) production function 
B) firm 
C) variable input 
D) fixed input

Question 7

(Table: Lindsay's Farm) Look at the table Lindsay's Farm.Lindsay's variable costs of production:

Accepted Answer

A) stay constant. 
B) are equal to 10. 
C) equal zero when she produces zero bushels of produce. 
D) fall as soon as she starts producing. 
A) stay constant. 
B) are equal to 10. 
C) equal zero when she produces zero bushels of produce. 
D) fall as soon as she starts producing.

Question 8

In the short run, the average total cost curve always lies above the average variable cost curve.False

Accepted Answer

A) True 
 B)False

Question 9

(Table: Workers and Output) After graduation you achieve your dream of opening your own art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle, and you pay $10 per day to each of your workers (who make the mud statues).After careful study, you determine the production information in the table.The variable cost of producing 25 statues is

Accepted Answer

A) $10 
B) $20 
C) $25 
D) $35 
A) $10 
B) $20 
C) $25 
D) $35

Question 10

A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:

Accepted Answer

A) economies of scale. 
B) diseconomies of scale. 
C) increasing opportunity costs. 
D) scale reduction. 
A) economies of scale. 
B) diseconomies of scale. 
C) increasing opportunity costs. 
D) scale reduction.

Question 11

A farm can produce 1,000 bushels of wheat per year with two workers and 1,300 bushels of wheat per year with four workers.The marginal product of the fourth worker is:

Accepted Answer

A) 100 bushels. 
B) 300 bushels. 
C) 1,300 bushels. 
D) 150 bushels. 
A) 100 bushels. 
B) 300 bushels. 
C) 1,300 bushels. 
D) 150 bushels.

Question 12

As production increases and the fixed cost is divided by larger quantities of output, this leads to lower average fixed cost.This is referred to as the effect.

Accepted Answer

A) diminishing returns . 
B) spreading 
C) constant cost 
D) increasing returns 
A) diminishing returns . 
B) spreading 
C) constant cost 
D) increasing returns

Question 13

Diminishing returns are one explanation for diseconomies of scale.True

Accepted Answer

A) True 
 B)False

Question 14

For every restaurant in Cleveland, the average total cost curve ________ at levels of output, then ________ at levels.

Accepted Answer

A) falls; low; rises; higher 
B) rises; low; falls; higher 
C) rises; higher; rises; low 
D) falls; higher; falls; low 
A) falls; low; rises; higher 
B) rises; low; falls; higher 
C) rises; higher; rises; low 
D) falls; higher; falls; low

Question 15

Figure: The Marginal Product of Labor     (Figure: The Marginal Product of Labor) Look at the figure The Marginal Product of Labor.The total product of labor for eight workers is:

Accepted Answer

A) 40 bushels. 
B) 35 bushels. 
C) 96 bushels. 
D) 75 bushels. 
A) 40 bushels. 
B) 35 bushels. 
C) 96 bushels. 
D) 75 bushels.

Question 16

Figure: Short-Run Costs     (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At seven units of output, average fixed cost is approximately ________, and average variable cost is approximately _.

Accepted Answer

A) $100; $100 
B) $10; $135 
C) $40; $100 
D) $140; $140 
A) $100; $100 
B) $10; $135 
C) $40; $100 
D) $140; $140

Question 17

The marginal cost curve is the mirror image of the:

Accepted Answer

A) total product curve. 
B) average product curve. 
C) marginal product curve. 
D) average total cost curve. 
A) total product curve. 
B) average product curve. 
C) marginal product curve. 
D) average total cost curve.

Question 18

A fixed input is one:

Accepted Answer

A) that exists in nature and there is only so much of it. 
B) that can be used for one thing only. 
C) that can never produce more or less in any period. 
D) whose quantity cannot be changed in the short run. 
A) that exists in nature and there is only so much of it. 
B) that can be used for one thing only. 
C) that can never produce more or less in any period. 
D) whose quantity cannot be changed in the short run.

Question 19

(Table: Cost Data) Look at the table Cost Data.When the purse factory produces five units of output (purses), which of the following is true about the firm's cost curves?

Accepted Answer

A) Marginal cost is greater than average total cost, and average total cost is rising. 
B) Average total cost is greater than average variable cost, and average variable cost is falling. 
C) Marginal cost is below average variable cost, and average variable cost is falling. 
D) Marginal cost is above average variable cost and below average total cost, and average total cost is rising. 
A) Marginal cost is greater than average total cost, and average total cost is rising. 
B) Average total cost is greater than average variable cost, and average variable cost is falling. 
C) Marginal cost is below average variable cost, and average variable cost is falling. 
D) Marginal cost is above average variable cost and below average total cost, and average total cost is rising.

Question 20

(Table: Output and Costs) Look at the table Output and Costs.Using the information in the table, when output increases from one to two, marginal cost equals:

Accepted Answer

A) 13. 
B) 10. 
C) 8. 
D) 17. 
A) 13. 
B) 10. 
C) 8. 
D) 17.

(Table: Production of Bagels) Look at the table Production of Bagels.The marginal product of the third worker is bagels.

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.B is the cost curve.

(Table: Cost Data) Look at the table Cost Data, which shows data for a designer purse factory.The average total cost of producing 4 purses is:

When diminishing returns exist, then the marginal cost curve is upward-sloping.False

The curve that illustrates the relationship between output and average total cost when the fixed cost has been chosen to minimize average total cost for each level of output is the:

A is an organization that produces goods or services for sale.

(Table: Lindsay's Farm) Look at the table Lindsay's Farm.Lindsay's variable costs of production:

In the short run, the average total cost curve always lies above the average variable cost curve.False

A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:

A farm can produce 1,000 bushels of wheat per year with two workers and 1,300 bushels of wheat per year with four workers.The marginal product of the fourth worker is:

As production increases and the fixed cost is divided by larger quantities of output, this leads to lower average fixed cost.This is referred to as the effect.

Diminishing returns are one explanation for diseconomies of scale.True

For every restaurant in Cleveland, the average total cost curve at levels of output, then at levels.

Figure: The Marginal Product of Labor (Figure: The Marginal Product of Labor) Look at the figure The Marginal Product of Labor.The total product of labor for eight workers is:

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At seven units of output, average fixed cost is approximately ________, and average variable cost is approximately _.

The marginal cost curve is the mirror image of the:

A fixed input is one:

(Table: Cost Data) Look at the table Cost Data.When the purse factory produces five units of output (purses), which of the following is true about the firm's cost curves?

(Table: Output and Costs) Look at the table Output and Costs.Using the information in the table, when output increases from one to two, marginal cost equals:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Exam 11: Behind the Supply Curve: Inputs and Costs

(Table: Production of Bagels) Look at the table Production of Bagels.The marginal product of the third worker is bagels.

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.B is the cost curve.

(Table: Cost Data) Look at the table Cost Data, which shows data for a designer purse factory.The average total cost of producing 4 purses is:

When diminishing returns exist, then the marginal cost curve is upward-sloping.False

The curve that illustrates the relationship between output and average total cost when the fixed cost has been chosen to minimize average total cost for each level of output is the:

A is an organization that produces goods or services for sale.

(Table: Lindsay's Farm) Look at the table Lindsay's Farm.Lindsay's variable costs of production:

In the short run, the average total cost curve always lies above the average variable cost curve.False

A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:

A farm can produce 1,000 bushels of wheat per year with two workers and 1,300 bushels of wheat per year with four workers.The marginal product of the fourth worker is:

As production increases and the fixed cost is divided by larger quantities of output, this leads to lower average fixed cost.This is referred to as the effect.

Diminishing returns are one explanation for diseconomies of scale.True

For every restaurant in Cleveland, the average total cost curve ________ at levels of output, then ________ at levels.

Figure: The Marginal Product of Labor (Figure: The Marginal Product of Labor) Look at the figure The Marginal Product of Labor.The total product of labor for eight workers is:

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At seven units of output, average fixed cost is approximately ________, and average variable cost is approximately _.

The marginal cost curve is the mirror image of the:

A fixed input is one:

(Table: Cost Data) Look at the table Cost Data.When the purse factory produces five units of output (purses), which of the following is true about the firm's cost curves?

(Table: Output and Costs) Look at the table Output and Costs.Using the information in the table, when output increases from one to two, marginal cost equals:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

For every restaurant in Cleveland, the average total cost curve at levels of output, then at levels.