Question 1

-In the above figure, the long-run average cost curve exhibits diseconomies of scale

Accepted Answer

A)  between 5 and 10 units per hour. 
B)  between 10 and 20 units per hour. 
C)  between 20 and 25 units per hour. 
D)  along the entire curve. 
A)  between 5 and 10 units per hour. 
B)  between 10 and 20 units per hour. 
C)  between 20 and 25 units per hour. 
D)  along the entire curve.

Question 2

The vertical distance between a firm's average total cost curve, ATC, and its average variable cost curve, AVC

Accepted Answer

A)  decreases as output increases. 
B)  is equal to its marginal cost, MC. 
C)  is equal to its total fixed cost, TFC. 
D)  is equal to its average product. 
A)  decreases as output increases. 
B)  is equal to its marginal cost, MC. 
C)  is equal to its total fixed cost, TFC. 
D)  is equal to its average product.

Question 3

-The cost data in the above table data show that production is characterized by

Accepted Answer

A)  economies of scale. 
B)  constant returns to scale. 
C)  decreasing returns to scale. 
D)  More information is needed to answer the question. 
A)  economies of scale. 
B)  constant returns to scale. 
C)  decreasing returns to scale. 
D)  More information is needed to answer the question.

Question 4

Are the short-run average total cost curve and the long-run average cost both U-shaped for the same reasons? If so, carefully explain these reasons. If not, explain why each curve is U-shaped.

Accepted Answer

The curves are U-shaped for quite differ

Question 5

All the production points that lie ________ the total product curve are attainable and ________.

Accepted Answer

A)  above; efficient 
B)  above; inefficient 
C)  below; efficient 
D)  below; inefficient 
A)  above; efficient 
B)  above; inefficient 
C)  below; efficient 
D)  below; inefficient

Question 6

A decrease in the price of a fixed factor of production decreases total cost and

Accepted Answer

A)  increases marginal cost. 
B)  leaves marginal cost unchanged. 
C)  decreases marginal cost. 
D)  increases variable cost. 
A)  increases marginal cost. 
B)  leaves marginal cost unchanged. 
C)  decreases marginal cost. 
D)  increases variable cost.

Question 7

Total Product, Marginal Product, Average Product
  
-In the above table, the marginal product of the fourth worker is

Accepted Answer

A)  1. 
B)  3. 
C)  4. 
D)  6. 
A)  1. 
B)  3. 
C)  4. 
D)  6.

Question 8

A firm's long-run average cost curve

Accepted Answer

A)  shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed. 
B)  is the sum of all of its short-run average cost curves. 
C)  tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output. 
D)  all of the above 
A)  shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed. 
B)  is the sum of all of its short-run average cost curves. 
C)  tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output. 
D)  all of the above

Question 9

Which curve shows the lowest average total cost at which it is possible to produce each output when the firm has time to change both its labor force and plant size?

Accepted Answer

The long-run average cost curv

Question 10

-The above table gives the total cost schedule for oil changes at the local Jiffy Lube.
a) What is Jiffy Lube's total fixed cost?
b) What is the total variable cost of 2 oil changes?
c) What is the average variable cost of 4 oil changes?
d) What is the average fixed cost of 2 oil changes?
e) What is the marginal cost of the 3rd oil change?

Accepted Answer

a) The total fixed cost is $10. At zero

Question 11

The long run is a time period in which

Accepted Answer

A)  one year or less elapses. 
B)  all factors of production are variable. 
C)  all factors of production are fixed. 
D)  there is at least one fixed factor of production and at least one variable factor of production. 
A)  one year or less elapses. 
B)  all factors of production are variable. 
C)  all factors of production are fixed. 
D)  there is at least one fixed factor of production and at least one variable factor of production.

Question 12

The average product of labor is equal to the

Accepted Answer

A)  total product divided by the total number of workers hired. 
B)  total number of workers hired divided by the total product. 
C)  slope of the marginal product of labor curve. 
D)  Both answers B and C are correct. 
A)  total product divided by the total number of workers hired. 
B)  total number of workers hired divided by the total product. 
C)  slope of the marginal product of labor curve. 
D)  Both answers B and C are correct.

Question 13

-At point d in the above figure, the average product of labor equals

Accepted Answer

A)  15. 
B)  4. 
C)  3.75. 
D)  approximately 1. 
A)  15. 
B)  4. 
C)  3.75. 
D)  approximately 1.

-In the above figure, the long-run average cost curve exhibits diseconomies of scale

The vertical distance between a firm's average total cost curve, ATC, and its average variable cost curve, AVC

-The cost data in the above table data show that production is characterized by

Are the short-run average total cost curve and the long-run average cost both U-shaped for the same reasons? If so, carefully explain these reasons. If not, explain why each curve is U-shaped.

All the production points that lie the total product curve are attainable and .

A decrease in the price of a fixed factor of production decreases total cost and

Total Product, Marginal Product, Average Product -In the above table, the marginal product of the fourth worker is

A firm's long-run average cost curve

Which curve shows the lowest average total cost at which it is possible to produce each output when the firm has time to change both its labor force and plant size?

The long run is a time period in which

The average product of labor is equal to the

-At point d in the above figure, the average product of labor equals

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

-In the above figure, the long-run average cost curve exhibits diseconomies of scale

The vertical distance between a firm's average total cost curve, ATC, and its average variable cost curve, AVC

-The cost data in the above table data show that production is characterized by

Are the short-run average total cost curve and the long-run average cost both U-shaped for the same reasons? If so, carefully explain these reasons. If not, explain why each curve is U-shaped.

All the production points that lie ________ the total product curve are attainable and ________.

A decrease in the price of a fixed factor of production decreases total cost and

Total Product, Marginal Product, Average Product -In the above table, the marginal product of the fourth worker is

A firm's long-run average cost curve

Which curve shows the lowest average total cost at which it is possible to produce each output when the firm has time to change both its labor force and plant size?

The long run is a time period in which

The average product of labor is equal to the

-At point d in the above figure, the average product of labor equals

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

All the production points that lie the total product curve are attainable and .