Question 1

If AFC is falling then MC must be

Accepted Answer

A) rising. 
B) falling. 
C) above AFC. 
D) below AFC. 
E) none of the above 
A) rising. 
B) falling. 
C) above AFC. 
D) below AFC. 
E) none of the above

Question 2

Which of the following would be classified as a fixed cost for the local supermarket?

Accepted Answer

A) the rent from the six-year lease on the building where the store is located 
B) the cost of the boxes of cereal sold in the supermarket 
C) the salary paid to the store's manager 
D) the overtime paid to the store's manager 
E) the Canada Pension payments that the supermarket makes to the government on the workers' income 
A) the rent from the six-year lease on the building where the store is located 
B) the cost of the boxes of cereal sold in the supermarket 
C) the salary paid to the store's manager 
D) the overtime paid to the store's manager 
E) the Canada Pension payments that the supermarket makes to the government on the workers' income

Question 3

The average product of labour is

Accepted Answer

A) the inverse of the average product of capital. 
B) the slope of the marginal product of labour curve. 
C) the slope of the total product curve. 
D) greater than the average product of labour. 
E) calculated as total product divided by the total quantity of labour employed. 
A) the inverse of the average product of capital. 
B) the slope of the marginal product of labour curve. 
C) the slope of the total product curve. 
D) greater than the average product of labour. 
E) calculated as total product divided by the total quantity of labour employed.

Question 4

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 1 to 2 and increases the number of workers employed from 1 to 2, the factory experiences

Accepted Answer

A) economies of scale. 
B) constant returns to scale. 
C) diseconomies of scale. 
D) constant marginal product. 
E) minimum efficient scale. 
A) economies of scale. 
B) constant returns to scale. 
C) diseconomies of scale. 
D) constant marginal product. 
E) minimum efficient scale.

Question 5

The average product of labour equals

Accepted Answer

A) the slope of the total product curve. 
B) the slope of the marginal product curve. 
C) the increase in total product divided by the increase in labour employed. 
D) total product divided by the quantity of labour employed. 
E) the difference between the total product and the marginal product of labour. 
A) the slope of the total product curve. 
B) the slope of the marginal product curve. 
C) the increase in total product divided by the increase in labour employed. 
D) total product divided by the quantity of labour employed. 
E) the difference between the total product and the marginal product of labour.

Question 6

Table 11.2.1
  
-Refer to Table 11.2.1 which gives Tania's total product schedule.The marginal product when the number of workers increases from 1 to 2 is

Accepted Answer

A) 3 teapots. 
B) 12 teapots. 
C) 7 teapots. 
D) 9 teapots. 
E) 6 teapots. 
A) 3 teapots. 
B) 12 teapots. 
C) 7 teapots. 
D) 9 teapots. 
E) 6 teapots.

Question 7

The marginal cost curve slopes downward at low outputs because of ________.The marginal cost curve eventually slopes upward because of ________.

Accepted Answer

A) greater specialization and division of labour; the law of diminishing returns 
B) the law of diminishing returns; increasing average fixed cost 
C) falling average fixed cost; the law of diminishing returns 
D) the law of diminishing returns; greater specialization and division of labour 
E) greater specialization and division of labour; rising average fixed cost 
A) greater specialization and division of labour; the law of diminishing returns 
B) the law of diminishing returns; increasing average fixed cost 
C) falling average fixed cost; the law of diminishing returns 
D) the law of diminishing returns; greater specialization and division of labour 
E) greater specialization and division of labour; rising average fixed cost

Question 8

Economies of scale are present when

Accepted Answer

A) the LRAC curve slopes downward. 
B) average total cost remains constant as input increases. 
C) average total cost rises as output increases. 
D) the LRAC curve is horizontal. 
E) total fixed cost increases. 
A) the LRAC curve slopes downward. 
B) average total cost remains constant as input increases. 
C) average total cost rises as output increases. 
D) the LRAC curve is horizontal. 
E) total fixed cost increases.

Question 9

The range over which average variable cost is decreasing is the same as the range over which

Accepted Answer

A) marginal cost is increasing. 
B) average fixed cost is decreasing. 
C) marginal product is decreasing. 
D) average product is decreasing. 
E) average product is increasing. 
A) marginal cost is increasing. 
B) average fixed cost is decreasing. 
C) marginal product is decreasing. 
D) average product is decreasing. 
E) average product is increasing.

Question 10

If an increase in output from 5 to 10 teapots increases total cost from $100 to $200, the marginal cost of one of those 5 teapots is

Accepted Answer

A) $10. 
B) $20. 
C) $22. 
D) $25. 
E) dependent upon the amount of extra labour used. 
A) $10. 
B) $20. 
C) $22. 
D) $25. 
E) dependent upon the amount of extra labour used.

Question 11

Marginal cost equals

Accepted Answer

A) TC/Q. 
B) Q/TVC. 
C) (TC - TV
C) /Q. 
D) TC/ΔQ. 
E) ΔTC/ΔQ. 
A) TC/Q. 
B) Q/TVC. 
C) (TC - TV
C) /Q. 
D) TC/ΔQ. 
E) ΔTC/ΔQ.

Question 12

Use the table below to answer the following questions.
Table 11.3.2
  
-Refer to Table 11.3.2, which gives Tania's total cost schedule.The average total cost of producing 14 teapots is

Accepted Answer

A) $7.86. 
B) $6.75. 
C) $7. 
D) $1.75. 
E) $27.50. 
A) $7.86. 
B) $6.75. 
C) $7. 
D) $1.75. 
E) $27.50.

Question 13

When the 7th worker is hired, output increases from 100 units per week to 110 units per week.When the 8th worker is hired, output increases from 110 units to 118 units.This is an example of

Accepted Answer

A) diminishing marginal returns. 
B) diminishing marginal cost. 
C) decreasing returns to scale. 
D) labour-intensive production. 
E) increasing returns to scale. 
A) diminishing marginal returns. 
B) diminishing marginal cost. 
C) decreasing returns to scale. 
D) labour-intensive production. 
E) increasing returns to scale.

Question 14

If the total product of four workers is 156 units, calculate the average product of each worker.

Accepted Answer

A) 39 units 
B) 19.5 units 
C) 78 units 
D) 152 units 
E) 624 units 
A) 39 units 
B) 19.5 units 
C) 78 units 
D) 152 units 
E) 624 units

Question 15

The MC curve shifts upward if

Accepted Answer

A) factor prices rise. 
B) a new technology is introduced. 
C) more workers are hired. 
D) all of the above 
E) none of the above 
A) factor prices rise. 
B) a new technology is introduced. 
C) more workers are hired. 
D) all of the above 
E) none of the above

Question 16

A rise in the price of a fixed input shifts a firm's

Accepted Answer

A) average variable cost curve upward. 
B) average total cost curve upward. 
C) average total cost curve downward. 
D) marginal cost curve upward. 
E) marginal cost curve downward. 
A) average variable cost curve upward. 
B) average total cost curve upward. 
C) average total cost curve downward. 
D) marginal cost curve upward. 
E) marginal cost curve downward.

Question 17

Average variable cost is at a minimum at the same output at which

Accepted Answer

A) average product is at a maximum. 
B) average product is at a minimum. 
C) marginal product is at a maximum. 
D) marginal product is at a minimum. 
E) marginal cost is at a minimum. 
A) average product is at a maximum. 
B) average product is at a minimum. 
C) marginal product is at a maximum. 
D) marginal product is at a minimum. 
E) marginal cost is at a minimum.

Question 18

Table 11.2.1
  
-Refer to Table 11.2.1 which gives Tania's total product schedule.The average product when the firm hires two workers is

Accepted Answer

A) 3 teapots per worker. 
B) 6 teapots per worker. 
C) 7 teapots per worker. 
D) 9 teapots per worker. 
E) 12 teapots per worker. 
A) 3 teapots per worker. 
B) 6 teapots per worker. 
C) 7 teapots per worker. 
D) 9 teapots per worker. 
E) 12 teapots per worker.

Question 19

Given an upward-sloping, straight line total variable cost curve, what does the marginal cost curve look like?

Accepted Answer

A) an upward-sloping straight line 
B) a downward-sloping straight line 
C) a U-shaped curve 
D) a horizontal line 
E) a vertical line 
A) an upward-sloping straight line 
B) a downward-sloping straight line 
C) a U-shaped curve 
D) a horizontal line 
E) a vertical line

Question 20

If ATC is falling, then MC must be

Accepted Answer

A) rising. 
B) falling. 
C) equal to ATC. 
D) above ATC. 
E) below ATC. 
A) rising. 
B) falling. 
C) equal to ATC. 
D) above ATC. 
E) below ATC.

If AFC is falling then MC must be

Which of the following would be classified as a fixed cost for the local supermarket?

The average product of labour is

The average product of labour equals

Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule.The marginal product when the number of workers increases from 1 to 2 is

The marginal cost curve slopes downward at low outputs because of .The marginal cost curve eventually slopes upward because of .

Economies of scale are present when

The range over which average variable cost is decreasing is the same as the range over which

If an increase in output from 5 to 10 teapots increases total cost from $100 to $200, the marginal cost of one of those 5 teapots is

Marginal cost equals

Use the table below to answer the following questions. Table 11.3.2 -Refer to Table 11.3.2, which gives Tania's total cost schedule.The average total cost of producing 14 teapots is

When the 7th worker is hired, output increases from 100 units per week to 110 units per week.When the 8th worker is hired, output increases from 110 units to 118 units.This is an example of

If the total product of four workers is 156 units, calculate the average product of each worker.

The MC curve shifts upward if

A rise in the price of a fixed input shifts a firm's

Average variable cost is at a minimum at the same output at which

Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule.The average product when the firm hires two workers is

Given an upward-sloping, straight line total variable cost curve, what does the marginal cost curve look like?

If ATC is falling, then MC must be

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Filters

Exam 11: Output and Costs

If AFC is falling then MC must be

Which of the following would be classified as a fixed cost for the local supermarket?

The average product of labour is

The average product of labour equals

Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule.The marginal product when the number of workers increases from 1 to 2 is

The marginal cost curve slopes downward at low outputs because of ________.The marginal cost curve eventually slopes upward because of ________.

Economies of scale are present when

The range over which average variable cost is decreasing is the same as the range over which

If an increase in output from 5 to 10 teapots increases total cost from $100 to $200, the marginal cost of one of those 5 teapots is

Marginal cost equals

Use the table below to answer the following questions. Table 11.3.2 -Refer to Table 11.3.2, which gives Tania's total cost schedule.The average total cost of producing 14 teapots is

When the 7th worker is hired, output increases from 100 units per week to 110 units per week.When the 8th worker is hired, output increases from 110 units to 118 units.This is an example of

If the total product of four workers is 156 units, calculate the average product of each worker.

The MC curve shifts upward if

A rise in the price of a fixed input shifts a firm's

Average variable cost is at a minimum at the same output at which

Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule.The average product when the firm hires two workers is

Given an upward-sloping, straight line total variable cost curve, what does the marginal cost curve look like?

If ATC is falling, then MC must be

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Filters

The marginal cost curve slopes downward at low outputs because of .The marginal cost curve eventually slopes upward because of .