Exam 11: Output and Costs

Use the figure below to answer the following questions. Figure 11.4.4 -Refer to Figure 11.4.4, which illustrates the long-run average total cost curve.Which one of the following statements is false?

Choose the statement that is incorrect.

If constant returns to scale are present,

Use the figure below to answer the following questions. Figure 11.4.1 -Refer to Figure 11.4.1 which shows the total product curves for four different plant sizes as Tania varies the quantity of capital and workers.The curve that represents the plant using the largest amount of capital is

Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule.Average product of labour reaches its maximum for the ________ worker.

Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed.What is Ernie's total variable cost?

Use the table below to answer the following question. Table 11.2.4 -Refer to Table 11.2.4.The table gives the total product schedule of workers who harvest corn.Diminishing marginal returns begin when the ________ is hired.

Use the figure below to answer the following question. Figure 11.3.1 -Refer to Figure 11.3.1.Which one of the following statements is false?

If energy (E)is the only input used to produce output (Q), what is the formula for average product of energy?

Marginal product of labour is the increase in total product that results from a

Use the figure below to answer the following question. Figure 11.2.2 -Refer to Figure 11.2.2 which shows Tania's average product curve and marginal product curve.The point of maximum average product is point

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

The minimum efficient scale is the smallest quantity of output at which

Use the figure below to answer the following questions. Figure 11.2.1 -Refer to Figure 11.2.1 which illustrates Tania's total product curve.Which one of the following statements is true?

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

The long run is a time frame in which

Use the table below to answer the following questions. Table 11.2.2 -Refer to Table 11.2.2 which gives Tania's total product schedule.The average product when the firm hires three workers is

Diseconomies of scale are present when

A firm's total fixed cost is $100.If total cost is $200 for one unit of output and $310 for two units, what is the marginal cost of the second unit?

A firm will want to increase its scale of plant if