Question 1

A cost that has already been made and cannot be recovered is called a

Accepted Answer

A)  variable cost. 
B)  fixed cost. 
C)  sunk cost. 
D)  marginal cost. 
A)  variable cost. 
B)  fixed cost. 
C)  sunk cost. 
D)  marginal cost.

Question 2

-The table above shows the short-run product schedule for Virginia's Tee-Shirts. What is the average product associated with hiring the fourth worker?

Accepted Answer

A)  40 shirts 
B)  55 shirts 
C)  50 shirts 
D)  220 shirts 
A)  40 shirts 
B)  55 shirts 
C)  50 shirts 
D)  220 shirts

Question 3

The long run is distinguished from the short run because only in the long run

Accepted Answer

A)  output prices can vary. 
B)  factor of production prices can vary. 
C)  the quantities of all factors of production can be varied. 
D)  the firm no longer maximizes its profit. 
A)  output prices can vary. 
B)  factor of production prices can vary. 
C)  the quantities of all factors of production can be varied. 
D)  the firm no longer maximizes its profit.

Question 4

All the decisions made by people who operate firms have one overriding objective, which is to

Accepted Answer

A)  make maximum attainable profit. 
B)  maximize the firm's total revenue. 
C)  maximize the firm's market share. 
D)  maximize the quantity that the firm sells. 
A)  make maximum attainable profit. 
B)  maximize the firm's total revenue. 
C)  maximize the firm's market share. 
D)  maximize the quantity that the firm sells.

Question 5

A firm's average variable cost is $60, its total fixed cost is $3,000, and its output is 600 units. Its average total cost is

Accepted Answer

A)  less than $58. 
B)  between $58 and $62. 
C)  between $62 and $64. 
D)  more than $64. 
A)  less than $58. 
B)  between $58 and $62. 
C)  between $62 and $64. 
D)  more than $64.

Question 6

A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1,000. Its output is

Accepted Answer

A)  less than 70 units. 
B)  between 70 and 120 units. 
C)  between 120 and 170 units. 
D)  more than 170 units. 
A)  less than 70 units. 
B)  between 70 and 120 units. 
C)  between 120 and 170 units. 
D)  more than 170 units.

Question 7

The total output produced with any quantity of labor is equal to the sum of the

Accepted Answer

A)  marginal products of each of the workers hired. 
B)  average products of each of the workers hired. 
C)  total wages the firm pays its workers. 
D)  Both answers A and B are correct. 
A)  marginal products of each of the workers hired. 
B)  average products of each of the workers hired. 
C)  total wages the firm pays its workers. 
D)  Both answers A and B are correct.

Question 8

Jefferson's Cleaners
  
-Using the above table, what is the average product of labor when Jefferson's Cleaners employs six workers?

Accepted Answer

A)  11 suits per day 
B)  12 suits per day 
C)  13 suits per day 
D)  14 suits per day 
A)  11 suits per day 
B)  12 suits per day 
C)  13 suits per day 
D)  14 suits per day

Question 9

Decent Donuts
  
-Based on the data in the table above, what is the average product of labor when Decent Donuts employs five workers?

Accepted Answer

A)  16.66 dozen donuts per day 
B)  17.2 dozen donuts per day 
C)  20 dozen donuts per day 
D)  22 dozen donuts per day 
A)  16.66 dozen donuts per day 
B)  17.2 dozen donuts per day 
C)  20 dozen donuts per day 
D)  22 dozen donuts per day

Question 10

-Based on the production data for Pat's Pizza Parlor in the above table, which worker has the largest marginal product?

Accepted Answer

A)  Worker 1 
B)  Worker 2 
C)  Worker 3 
D)  Worker 4 
A)  Worker 1 
B)  Worker 2 
C)  Worker 3 
D)  Worker 4

Question 11

What is the law of diminishing returns? Why is this proposition called a "law"?

Accepted Answer

The law of diminishing returns states th

Question 12

Which cost always increases as output increases?

Accepted Answer

A)  total cost 
B)  marginal cost 
C)  average total cost 
D)  average fixed cost 
A)  total cost 
B)  marginal cost 
C)  average total cost 
D)  average fixed cost

Question 13

As output increases, the slope of the curve showing the firm's average fixed cost is

Accepted Answer

A)  first negative, then positive. 
B)  first positive, then negative. 
C)  always negative. 
D)  always positive. 
A)  first negative, then positive. 
B)  first positive, then negative. 
C)  always negative. 
D)  always positive.

Question 14

Economies of scale refer to

Accepted Answer

A)  the point at which marginal cost equals average cost. 
B)  the fact that in the long run, fixed costs remain constant as output increases. 
C)  the range of output over which the long-run average cost falls as output increases. 
D)  a feature of short-run production functions but not long-run production functions. 
A)  the point at which marginal cost equals average cost. 
B)  the fact that in the long run, fixed costs remain constant as output increases. 
C)  the range of output over which the long-run average cost falls as output increases. 
D)  a feature of short-run production functions but not long-run production functions.

Question 15

Constant returns to scale means that as all inputs are increased

Accepted Answer

A)  total output remains constant. 
B)  average total cost rises. 
C)  average total cost rises at the same rate as do the inputs. 
D)  total output increases in the same proportion as do the inputs. 
A)  total output remains constant. 
B)  average total cost rises. 
C)  average total cost rises at the same rate as do the inputs. 
D)  total output increases in the same proportion as do the inputs.

Question 16

-As illustrated in the above figure, after 60 gallons are produced each hour at Ike's Ice Cream Kitchen, the ATC curve starts to slope upward. The ATC starts to slope upward because the

Accepted Answer

A)  MC curve slopes upward. 
B)  MC exceeds the ATC. 
C)  distance between the ATC and the AVC curve is shrinking. 
D)  None of the above answers is correct. 
A)  MC curve slopes upward. 
B)  MC exceeds the ATC. 
C)  distance between the ATC and the AVC curve is shrinking. 
D)  None of the above answers is correct.

Question 17

-The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?

Accepted Answer

A)  $300 
B)  $400 
C)  $700 
D)  More information is needed to calculate the total fixed cost. 
A)  $300 
B)  $400 
C)  $700 
D)  More information is needed to calculate the total fixed cost.

Question 18

-The above figure shows the costs at Barney's Bagel Bakery. After 3000 bagels are produced each day, the ATC curve starts to slope upward because the

Accepted Answer

A)  MC curve slopes upward. 
B)  MC exceeds the ATC. 
C)  AFC curve (not shown) starts to slope upward. 
D)  None of the above answers is correct. 
A)  MC curve slopes upward. 
B)  MC exceeds the ATC. 
C)  AFC curve (not shown) starts to slope upward. 
D)  None of the above answers is correct.

Question 19

-Draw an average total cost curve, an average variable cost, and a marginal cost curve all on the same graph. Make sure to correctly label the axes. What relationship must exist between the marginal cost curve and the average total cost and average variable cost curves?

Accepted Answer

@#IMG-DLM& Typical cost curves are above. The aver

Question 20

Average variable cost is equal to

Accepted Answer

A)  average total cost minus average fixed cost. 
B)  average total cost multiplied by output. 
C)  total cost divided by output. 
D)  the change in total cost divided by the change in output. 
A)  average total cost minus average fixed cost. 
B)  average total cost multiplied by output. 
C)  total cost divided by output. 
D)  the change in total cost divided by the change in output.

A cost that has already been made and cannot be recovered is called a

-The table above shows the short-run product schedule for Virginia's Tee-Shirts. What is the average product associated with hiring the fourth worker?

The long run is distinguished from the short run because only in the long run

All the decisions made by people who operate firms have one overriding objective, which is to

A firm's average variable cost is $60, its total fixed cost is $3,000, and its output is 600 units. Its average total cost is

A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1,000. Its output is

The total output produced with any quantity of labor is equal to the sum of the

Jefferson's Cleaners -Using the above table, what is the average product of labor when Jefferson's Cleaners employs six workers?

Decent Donuts -Based on the data in the table above, what is the average product of labor when Decent Donuts employs five workers?

-Based on the production data for Pat's Pizza Parlor in the above table, which worker has the largest marginal product?

What is the law of diminishing returns? Why is this proposition called a "law"?

Which cost always increases as output increases?

As output increases, the slope of the curve showing the firm's average fixed cost is

Economies of scale refer to

Constant returns to scale means that as all inputs are increased

-As illustrated in the above figure, after 60 gallons are produced each hour at Ike's Ice Cream Kitchen, the ATC curve starts to slope upward. The ATC starts to slope upward because the

-The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?

-The above figure shows the costs at Barney's Bagel Bakery. After 3000 bagels are produced each day, the ATC curve starts to slope upward because the

-Draw an average total cost curve, an average variable cost, and a marginal cost curve all on the same graph. Make sure to correctly label the axes. What relationship must exist between the marginal cost curve and the average total cost and average variable cost curves?

Average variable cost is equal to

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 11: Output and Costs

A cost that has already been made and cannot be recovered is called a

-The table above shows the short-run product schedule for Virginia's Tee-Shirts. What is the average product associated with hiring the fourth worker?

The long run is distinguished from the short run because only in the long run

All the decisions made by people who operate firms have one overriding objective, which is to

A firm's average variable cost is $60, its total fixed cost is $3,000, and its output is 600 units. Its average total cost is

A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1,000. Its output is

The total output produced with any quantity of labor is equal to the sum of the

Jefferson's Cleaners -Using the above table, what is the average product of labor when Jefferson's Cleaners employs six workers?

Decent Donuts -Based on the data in the table above, what is the average product of labor when Decent Donuts employs five workers?

-Based on the production data for Pat's Pizza Parlor in the above table, which worker has the largest marginal product?

What is the law of diminishing returns? Why is this proposition called a "law"?

Which cost always increases as output increases?

As output increases, the slope of the curve showing the firm's average fixed cost is

Economies of scale refer to

Constant returns to scale means that as all inputs are increased

-As illustrated in the above figure, after 60 gallons are produced each hour at Ike's Ice Cream Kitchen, the ATC curve starts to slope upward. The ATC starts to slope upward because the

-The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?

-The above figure shows the costs at Barney's Bagel Bakery. After 3000 bagels are produced each day, the ATC curve starts to slope upward because the

-Draw an average total cost curve, an average variable cost, and a marginal cost curve all on the same graph. Make sure to correctly label the axes. What relationship must exist between the marginal cost curve and the average total cost and average variable cost curves?

Average variable cost is equal to

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters