Exam 4: Production, Costs, and Demand Analysis

Economies of scale

Marginal costs and average variable costs are equal when

Costs incurred only when production occurs are known as:

Utility is the concept which is:

Change in utility resulting from one unit change in consumption is called:

The total product curve may initially show output increasing at an increasing rate as more labour is hired because of the:

If labour is the only variable resource and its marginal physical product falls as more workers are hired:

In economic theory the costs of a firm

Which of the following is irrelevant for rational decision making?

Diminishing marginal returns are most compatible with:

Saturation point is the point where:

According to the principle of diminishing marginal physical productivity, in the short run

The short run as the term is used in connection with the theory of the firm is a period of time:

The average total costs of the firm as defined in standard economic theory

If average variable costs fall as output grows:

When both average and total product are greater than zero, and marginal product equals average product, then total product:

The law of diminishing marginal returns is encountered as increasing amounts of labour are hired because:

Theory of demand examines the behaviour of the--------