Question 1

-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 2

Marginal cost refers to the increase in cost attributable to hiring one more unit of labor, capital, or some other input.

Accepted Answer

A) True 
 B)False

Question 3

The law of diminishing marginal returns says that as the firm uses more of ________, with a given quantity of ________, the ________ product of the variable input eventually diminishes.

Accepted Answer

A)  a fixed input; variable inputs; marginal 
B)  all inputs; capital; average 
C)  a variable input; fixed inputs; average 
D)  a variable input; fixed inputs; marginal 
A)  a fixed input; variable inputs; marginal 
B)  all inputs; capital; average 
C)  a variable input; fixed inputs; average 
D)  a variable input; fixed inputs; marginal

Question 4

-In the figure above, when 20 units are produced the marginal cost is

Accepted Answer

A)  less than $8. 
B)  $8. 
C)  more than $8 and less than $16. 
D)  None of the above answers is correct. 
A)  less than $8. 
B)  $8. 
C)  more than $8 and less than $16. 
D)  None of the above answers is correct.

Question 5

-The above (incomplete) table provides information about the relationships between output and various cost measures. The total fixed cost (TFC) for the firm is

Accepted Answer

A)  zero. 
B)  $45. 
C)  $10. 
D)  None of the above answers is correct. 
A)  zero. 
B)  $45. 
C)  $10. 
D)  None of the above answers is correct.

Question 6

Explain how new technologies, which increase productivity, affect the average variable cost, average total cost, and marginal cost curves.

Accepted Answer

A technological change that increases pr

Question 7

-At point e in the above figure, the marginal product of labor

Accepted Answer

A)  is less than the average product of labor. 
B)  equals the average product of labor. 
C)  is greater than the average product of labor. 
D)  is at its maximum. 
A)  is less than the average product of labor. 
B)  equals the average product of labor. 
C)  is greater than the average product of labor. 
D)  is at its maximum.

Question 8

Cost schedule  
-In the above table, the average variable cost of producing 14 units of output is

Accepted Answer

A)  $0.175. 
B)  $5.71. 
C)  $7.86. 
D)  $10.00. 
A)  $0.175. 
B)  $5.71. 
C)  $7.86. 
D)  $10.00.

Question 9

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?

Accepted Answer

A)  $1 
B)  $2 
C)  $3 
D)  More information is needed to determine the answer. 
A)  $1 
B)  $2 
C)  $3 
D)  More information is needed to determine the answer.

Question 10

-In the above figure, the maximum number of units that 4 workers can produce is

Accepted Answer

A)  5 units. 
B)  10 units. 
C)  15 units. 
D)  more than 15 units. 
A)  5 units. 
B)  10 units. 
C)  15 units. 
D)  more than 15 units.

Question 11

What is the difference between diminishing marginal returns and diseconomies of scale?

Accepted Answer

Diminishing marginal returns is a short

Question 12

-In the above table, what is average product when 4 workers are employed?

Accepted Answer

A)  12 
B)  10 
C)  11.5 
D)  9.5 
A)  12 
B)  10 
C)  11.5 
D)  9.5

Question 13

The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost.

Accepted Answer

A) True 
 B)False

Question 14

A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit

Accepted Answer

A)  is $3.20. 
B)  is $4.00. 
C)  is $320. 
D)  cannot be calculated with this information. 
A)  is $3.20. 
B)  is $4.00. 
C)  is $320. 
D)  cannot be calculated with this information.

Question 15

The cost of a variable input, such as the wage paid to workers, decreases. This decrease shifts the

Accepted Answer

A)  total fixed cost curve downward. 
B)  marginal product of labor curve downward. 
C)  average variable cost curve downward. 
D)  marginal product of labor curve upward. 
A)  total fixed cost curve downward. 
B)  marginal product of labor curve downward. 
C)  average variable cost curve downward. 
D)  marginal product of labor curve upward.

Question 16

-The above table shows the total product schedule for the campus book store. When the book store is selling 60 books per hour it is certain that

Accepted Answer

A)  marginal costs are increasing, but average variable costs are still decreasing. 
B)  both marginal and average costs are decreasing. 
C)  both marginal and average costs are increasing. 
D)  hiring one more employee per hour will lead to fewer books being sold. 
A)  marginal costs are increasing, but average variable costs are still decreasing. 
B)  both marginal and average costs are decreasing. 
C)  both marginal and average costs are increasing. 
D)  hiring one more employee per hour will lead to fewer books being sold.

Question 17

Cost schedule  
-Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is

Accepted Answer

A)  $4.00. 
B)  $4.25. 
C)  $5.00. 
D)  $6.25. 
A)  $4.00. 
B)  $4.25. 
C)  $5.00. 
D)  $6.25.

Question 18

Pizza Hut  
-Using the data in the above table, what is the marginal product of the third employee?

Accepted Answer

A)  2 pizzas per hour 
B)  3 pizzas per hour 
C)  4 pizzas per hour 
D)  12 pizzas per hour 
A)  2 pizzas per hour 
B)  3 pizzas per hour 
C)  4 pizzas per hour 
D)  12 pizzas per hour

Question 19

Pizza Hut  
-Using the data in the above table, what is the marginal product of the second worker?

Accepted Answer

A)  4.5 pizzas per hour 
B)  4 pizzas per hour 
C)  5 pizzas per hour 
D)  The marginal product is undefined. 
A)  4.5 pizzas per hour 
B)  4 pizzas per hour 
C)  5 pizzas per hour 
D)  The marginal product is undefined.

Question 20

-The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the

Accepted Answer

A)  TFC curve (not shown) slopes down. 
B)  AFC curve (not shown) slopes down. 
C)  MC curve is rising. 
D)  AVC curve is rising. 
A)  TFC curve (not shown) slopes down. 
B)  AFC curve (not shown) slopes down. 
C)  MC curve is rising. 
D)  AVC curve is rising.

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

Marginal cost refers to the increase in cost attributable to hiring one more unit of labor, capital, or some other input.

The law of diminishing marginal returns says that as the firm uses more of , with a given quantity of , the product of the variable input eventually diminishes.

-In the figure above, when 20 units are produced the marginal cost is

-The above (incomplete) table provides information about the relationships between output and various cost measures. The total fixed cost (TFC) for the firm is

Explain how new technologies, which increase productivity, affect the average variable cost, average total cost, and marginal cost curves.

-At point e in the above figure, the marginal product of labor

Cost schedule -In the above table, the average variable cost of producing 14 units of output is

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?

-In the above figure, the maximum number of units that 4 workers can produce is

What is the difference between diminishing marginal returns and diseconomies of scale?

-In the above table, what is average product when 4 workers are employed?

The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost.

A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit

The cost of a variable input, such as the wage paid to workers, decreases. This decrease shifts the

-The above table shows the total product schedule for the campus book store. When the book store is selling 60 books per hour it is certain that

Cost schedule -Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is

Pizza Hut -Using the data in the above table, what is the marginal product of the third employee?

Pizza Hut -Using the data in the above table, what is the marginal product of the second worker?

-The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the

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

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 11: Output and Costs

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

Marginal cost refers to the increase in cost attributable to hiring one more unit of labor, capital, or some other input.

The law of diminishing marginal returns says that as the firm uses more of ________, with a given quantity of ________, the ________ product of the variable input eventually diminishes.

-In the figure above, when 20 units are produced the marginal cost is

-The above (incomplete) table provides information about the relationships between output and various cost measures. The total fixed cost (TFC) for the firm is

Explain how new technologies, which increase productivity, affect the average variable cost, average total cost, and marginal cost curves.

-At point e in the above figure, the marginal product of labor

Cost schedule -In the above table, the average variable cost of producing 14 units of output is

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?

-In the above figure, the maximum number of units that 4 workers can produce is

What is the difference between diminishing marginal returns and diseconomies of scale?

-In the above table, what is average product when 4 workers are employed?

The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost.

A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit

The cost of a variable input, such as the wage paid to workers, decreases. This decrease shifts the

-The above table shows the total product schedule for the campus book store. When the book store is selling 60 books per hour it is certain that

Cost schedule -Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is

Pizza Hut -Using the data in the above table, what is the marginal product of the third employee?

Pizza Hut -Using the data in the above table, what is the marginal product of the second worker?

-The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the

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

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

The law of diminishing marginal returns says that as the firm uses more of , with a given quantity of , the product of the variable input eventually diminishes.