Exam 11: Output and Costs

When the demand for electricity peaks during the hottest days of summer, Hydro One can generate more electricity by using more fuel and increasing the working hours of many of its employees. The company cannot, however, increase electric power production by building additional generating capacity. This means that the company is operating in the

Marginal cost ________ as the quantity produced increases.

Which one of the following statements is true?

Marginal cost is equal to

One reason for diseconomies of scale is that as output becomes larger and larger,

The short run refers to a time period

Marginal product

In the long run, a firm has no factors of production that are

The law of diminishing marginal returns refers to the tendency for the ________ to eventually decrease as more labour is employed, everything else remaining the same.

A firm's total product curve describes

Which one of the following statements is false?

After constructing a new factory, the cost of building the factor is a

The ATC curve shifts upward if

Choose the correct equation.

The average product of labour equals

The steeper the slope of the total product curve,

Use the table below to answer the following questions. Table 11.3.1 -Refer to Table 11.3.1, which gives Tania's total cost schedule. The average fixed cost of producing 9 teapots per day is

Use the table below to answer the following questions. Table 11.4.1 Swanky's output levels -Refer to Table 11.4.1, which represents Swanky's production possibilities as the firm varies the quantities of knitting machines and workers per day. If Swanky increases the number of knitting machines from 2 to 3 and increases the number of workers employed from 2 to 3, the factory experiences

Use the figure below to answer the following questions. Figure 11.4.1 -Refer to Figure 11.4.1, which illustrates the total product curves for four different plant sizes. One of the fundamental technological facts reflected in the shape of each of the total product curves is the

Which of the following factors are fixed in the long run?