Figure 7-10 -Refer to Figure 7-10.Suppose for the past 8 years the firm has been producing Qd units per period using plant size ATC4.Now,following a permanent change in demand,it plans to cut production to Qc units.What will happen to its average cost of production?

A) In the short run,its average cost falls from $47 to $41,and in the long run,average cost falls even further to $37. B) In the short run,its average cost rises from $47 to $55,and in the long run,average cost falls to $41. C) In the short run,its average cost falls from $47 to $37,and in the long run,average cost rises to $41. D) In the short run,its average cost rises from $47 to $55,and in the long run,average cost falls to $37. A) In the short run,its average cost falls from $47 to $41,and in the long run,average cost falls even further to $37. B) In the short run,its average cost rises from $47 to $55,and in the long run,average cost falls to $41. C) In the short run,its average cost falls from $47 to $37,and in the long run,average cost rises to $41. D) In the short run,its average cost rises from $47 to $55,and in the long run,average cost falls to $37.

Figure 7-11 Figure 7-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATCS1U1B1aS1U1B0,ATCS1U1B1bS1U1B0 and ATCS1U1B1cS1U1B0. -Refer to Figure 7-11.In the short run,if the firm sells fewer than 5000 picture frames per month,

A) it should produce with the scale of operation associated with ATCa. B) it should produce with the scale of operation associated with ATCb. C) it should produce with the scale of operation associated with ATCc. D) it will experience constant returns to scale. A) it should produce with the scale of operation associated with ATCa. B) it should produce with the scale of operation associated with ATCb. C) it should produce with the scale of operation associated with ATCc. D) it will experience constant returns to scale.

Exam 7: Technology, Production and Costs

Figure 7-10 -Refer to Figure 7-10.Suppose for the past 8 years the firm has been producing Q_dunits per period using plant size ATC₄.Now,following a permanent change in demand,it plans to cut production to Q_c units.What will happen to its average cost of production?

(Multiple Choice)

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Question 81

Figure 7-11 Figure 7-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATC_a,ATC_b and ATC_c. -Refer to Figure 7-11.In the short run,if the firm sells fewer than 5000 picture frames per month,

(Multiple Choice)

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Question 82

Figure 7-11 Figure 7-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATC_a,ATC_b and ATC_c. -Refer to Figure 7-11.Constant returns to scale

(Multiple Choice)

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Question 83

The absolute value of the slope of an isocost line equals the ratio of

(Multiple Choice)

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Question 84

Which of the following statements is true?

(Multiple Choice)

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Question 85

If a firm experiences positive technological change,it is able to produce more output using the same inputs.

(True/False)

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Question 86

Suppose a firm uses labour and capital to produce output.The last unit of labour hired has a marginal product of 12 units of output,and the last unit of capital employed has a marginal product of 20 units.Use the optimal combination of inputs rule to calculate the price of capital if the price of labour is $6 per unit.The price of capital is

(Multiple Choice)

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Question 87

Average total cost is equal to average variable cost minus average fixed cost.

(True/False)

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Question 88

If a firm is experiencing diseconomies of scale,its long-run average cost curve is increasing.

(True/False)

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Question 89

Table 7-1 Table 7-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. -Refer to Table 7-1.What is the average product of labour when the farm hires 5 workers?

(Multiple Choice)

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Question 90

An expansion path shows

(Multiple Choice)

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Question 91

Which of the following statements best describes the economic short run?

(Multiple Choice)

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Question 92

Figure 7-2 -Refer to Figure 7-2.The curve labeled 'E' is

(Multiple Choice)

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Question 93

Suppose the price of capital and labour remain constant but that the average educational level of workers has increased and therefore,productivity of labour increases.This would lead a firm

(Multiple Choice)

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Question 94

Figure 7-2 -Refer to Figure 7-2.Short run output is maximised at

(Multiple Choice)

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Question 95

Figure 7-13 -Refer to Figure 7-13.The lines shown in the diagram are isocost lines.Which of the following shows a decrease in the price of capital while the price of labour remains unchanged?

(Multiple Choice)

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Question 96

A U-shaped long run average cost curve implies that a firm experiences economies of scale at low levels of production and diseconomies of scale at high levels of production.

(True/False)

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Question 97

Red Stone Creamery currently hires 5 workers.When it added a 6th worker,its output actually fell.Which of the following statements is true?

(Multiple Choice)

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Question 98

Which of the following statements is false?

(Multiple Choice)

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Question 99

If an airport decides to expand by building an additional passenger terminal,and in doing so it lowers its average cost per airplane landing,it was previously operating at

(Multiple Choice)

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Question 100

Showing 81 - 100 of 300

Figure 7-10 -Refer to Figure 7-10.Suppose for the past 8 years the firm has been producing Q_dunits per period using plant size ATC₄.Now,following a permanent change in demand,it plans to cut production to Q_c units.What will happen to its average cost of production?

Figure 7-11 Figure 7-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATC_a,ATC_b and ATC_c. -Refer to Figure 7-11.Constant returns to scale

The absolute value of the slope of an isocost line equals the ratio of

Which of the following statements is true?

If a firm experiences positive technological change,it is able to produce more output using the same inputs.

Average total cost is equal to average variable cost minus average fixed cost.

If a firm is experiencing diseconomies of scale,its long-run average cost curve is increasing.

Table 7-1 Table 7-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. -Refer to Table 7-1.What is the average product of labour when the farm hires 5 workers?

An expansion path shows

Which of the following statements best describes the economic short run?

Figure 7-2 -Refer to Figure 7-2.The curve labeled 'E' is

Suppose the price of capital and labour remain constant but that the average educational level of workers has increased and therefore,productivity of labour increases.This would lead a firm

Figure 7-2 -Refer to Figure 7-2.Short run output is maximised at

Figure 7-13 -Refer to Figure 7-13.The lines shown in the diagram are isocost lines.Which of the following shows a decrease in the price of capital while the price of labour remains unchanged?

A U-shaped long run average cost curve implies that a firm experiences economies of scale at low levels of production and diseconomies of scale at high levels of production.

Red Stone Creamery currently hires 5 workers.When it added a 6th worker,its output actually fell.Which of the following statements is true?

Which of the following statements is false?

If an airport decides to expand by building an additional passenger terminal,and in doing so it lowers its average cost per airplane landing,it was previously operating at

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: the Responsiveness of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

The Markets for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 7: Technology, Production and Costs

Figure 7-10 -Refer to Figure 7-10.Suppose for the past 8 years the firm has been producing Qd units per period using plant size ATC4.Now,following a permanent change in demand,it plans to cut production to Qc units.What will happen to its average cost of production?

Figure 7-11 Figure 7-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATCa,ATCb and ATCc. -Refer to Figure 7-11.Constant returns to scale

The absolute value of the slope of an isocost line equals the ratio of

Which of the following statements is true?

If a firm experiences positive technological change,it is able to produce more output using the same inputs.

Average total cost is equal to average variable cost minus average fixed cost.

If a firm is experiencing diseconomies of scale,its long-run average cost curve is increasing.

Table 7-1 Table 7-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. -Refer to Table 7-1.What is the average product of labour when the farm hires 5 workers?

An expansion path shows

Which of the following statements best describes the economic short run?

Figure 7-2 -Refer to Figure 7-2.The curve labeled 'E' is

Suppose the price of capital and labour remain constant but that the average educational level of workers has increased and therefore,productivity of labour increases.This would lead a firm

Figure 7-2 -Refer to Figure 7-2.Short run output is maximised at

Figure 7-13 -Refer to Figure 7-13.The lines shown in the diagram are isocost lines.Which of the following shows a decrease in the price of capital while the price of labour remains unchanged?

A U-shaped long run average cost curve implies that a firm experiences economies of scale at low levels of production and diseconomies of scale at high levels of production.

Red Stone Creamery currently hires 5 workers.When it added a 6th worker,its output actually fell.Which of the following statements is true?

Which of the following statements is false?

If an airport decides to expand by building an additional passenger terminal,and in doing so it lowers its average cost per airplane landing,it was previously operating at

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: the Responsiveness of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

The Markets for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Figure 7-10 -Refer to Figure 7-10.Suppose for the past 8 years the firm has been producing Q_dunits per period using plant size ATC₄.Now,following a permanent change in demand,it plans to cut production to Q_c units.What will happen to its average cost of production?

Figure 7-11 Figure 7-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATC_a,ATC_b and ATC_c. -Refer to Figure 7-11.Constant returns to scale