Question 1

A short-run production function was estimated as   At 60 units of labor,what is marginal product?

Accepted Answer

A) 4.1 
B) 1.2 
C) 6.3 
D) 2.4 
E) -2.4 
A) 4.1 
B) 1.2 
C) 6.3 
D) 2.4 
E) -2.4

Question 2

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form   and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000.   If Straker Industries produces 12 units of output,what is estimated short-run marginal cost SMC)?

Accepted Answer

A) $28.04 
B) $32.40 
C) $33.33 
D) $62.60 
A) $28.04 
B) $32.40 
C) $33.33 
D) $62.60

Question 3

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form   and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000.   If Straker Industries produces 20 units of output,what is estimated short-run marginal cost SMC)?

Accepted Answer

A) $171.40 
B) $463.20 
C) $1,348 
D) $2,348 
A) $171.40 
B) $463.20 
C) $1,348 
D) $2,348

Question 4

average variable cost function is estimated as   Which of the following cost functions is associated with this estimate?

Accepted Answer

A) SMC = 96 - 4Q + 0.1Q2 
B) TVC = 96Q - 2Q2 + 0.05Q3 
C) TVC = 96Q + 4Q2 + 0.15Q3 
D) SMC = 96 - 4Q + 0.15Q2 
E) both b and d 
A) SMC = 96 - 4Q + 0.1Q2 
B) TVC = 96Q - 2Q2 + 0.05Q3 
C) TVC = 96Q + 4Q2 + 0.15Q3 
D) SMC = 96 - 4Q + 0.15Q2 
E) both b and d

Question 5

A short-run production function was estimated as   At 60 units of labor,what is average product?

Accepted Answer

A) 9.4 
B) 8.6 
C) 3.7 
D) 2.4 
E) 6.4 
A) 9.4 
B) 8.6 
C) 3.7 
D) 2.4 
E) 6.4

Question 6

For the short-run cost function AVC = a + bQ + cQ2,

Accepted Answer

A) the AVC curve is   -shaped when a  0,and c  0,b  0. 
C) the corresponding SMC function is   . 
D) both a and c 
E) all of the above 
A) the AVC curve is   -shaped when a  0,and c  0,b  0. 
C) the corresponding SMC function is   . 
D) both a and c 
E) all of the above

Question 7

A short-run production function was estimated as   At what level of labor usage does the maximum average product occur?

Accepted Answer

A) 20 
B) 30 
C) 40 
D) 50 
E) 60 
A) 20 
B) 30 
C) 40 
D) 50 
E) 60

Question 8

a cubic production function of the form   ,in order for the average and marginal product functions to have their usual theoretical properties,it must be the case that

Accepted Answer

A) a  0 
B) a > 0,b  0,b > 0 
A) a  0 
B) a > 0,b  0,b > 0

Question 9

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be   Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene's output is 2,000 units,what is total cost TC)?

Accepted Answer

A) $144,000 
B) $396,000 
C) $444,000 
D) $642,000 
E) $846,000 
A) $144,000 
B) $396,000 
C) $444,000 
D) $642,000 
E) $846,000

Question 10

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be   Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene Enterprises produces 6,000 units,average variable cost AVC)is $_________.

Accepted Answer

A) $40 
B) $49.62 
C) $55 
D) $60 
E) $72.46 
A) $40 
B) $49.62 
C) $55 
D) $60 
E) $72.46

Question 11

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be   Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene's output is 2,000 units,average variable cost AVC)is

Accepted Answer

A) rising 
B) falling 
C) greater than short-run marginal cost 
D) less than short-run marginal cost 
E) both b and c 
A) rising 
B) falling 
C) greater than short-run marginal cost 
D) less than short-run marginal cost 
E) both b and c

Question 12

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be   Greene Enterprises faces total fixed costs TFC)of $300,000.If Greene Enterprises produces 6,000 units of output,what is estimated short-run marginal cost SMC)?

Accepted Answer

A) $45.60 
B) $62.40 
C) $83 
D) $92 
E) $100 
A) $45.60 
B) $62.40 
C) $83 
D) $92 
E) $100

Question 13

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form   and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000.   If Straker Industries produces 20 units of output,what is estimated average total cost ATC)?

Accepted Answer

A) $19.40 
B) $67.40 
C) $117.40 
D) $1,348 
A) $19.40 
B) $67.40 
C) $117.40 
D) $1,348

Question 14

is a problem with using a production function of the form Q = aK + bL a > 0,b > 0)?

Accepted Answer

A) MRTS is constant. 
B) A positive output can be produced when one input is not used. 
C) The marginal products of the inputs do not have diminishing marginal returns. 
D) both a and b 
E) all of the above 
A) MRTS is constant. 
B) A positive output can be produced when one input is not used. 
C) The marginal products of the inputs do not have diminishing marginal returns. 
D) both a and b 
E) all of the above

Question 15

A short-run production function was estimated as   At 20 units of labor,what is marginal product?

Accepted Answer

A) 6.0 
B) 1.9 
C) 6.3 
D) 4.0 
E) 2.4 
A) 6.0 
B) 1.9 
C) 6.3 
D) 4.0 
E) 2.4

Question 16

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be   Greene Enterprises faces total fixed costs TFC)of $300,000.At what level of output does average variable cost AVC)reach its minimum value for Greene Enterprises?

Accepted Answer

A) 800 
B) 3,144 
C) 3,800 
D) 4,333 
E) 51,672 
A) 800 
B) 3,144 
C) 3,800 
D) 4,333 
E) 51,672

Question 17

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be   Greene Enterprises faces total fixed costs TFC)of $300,000.What is total variable cost TVC)at Greene Enterprises when average variable cost AVC)is at its minimum?

Accepted Answer

A) $48,000 
B) $101,101 
C) $137,222 
D) $190,476 
E) $437,212 
A) $48,000 
B) $101,101 
C) $137,222 
D) $190,476 
E) $437,212

Question 18

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form   and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000.   If Straker Industries produces 20 units of output,what is estimated average variable cost AVC)?

Accepted Answer

A) $19.40 
B) $67.40 
C) $171.40 
D) $179.40 
A) $19.40 
B) $67.40 
C) $171.40 
D) $179.40

Question 19

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form   and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000.   If Straker Industries produces 12 units of output,what is estimated total cost TC)?

Accepted Answer

A) $1,000 
B) $1,463 
C) $2,348 
D) $4,428 
A) $1,000 
B) $1,463 
C) $2,348 
D) $4,428

Question 20

A firm estimates its long-run production function to be   Suppose the firm employs 12 units of capital.At _______ units of labor,marginal product of labor begins to diminish.

Accepted Answer

A) 32.21 
B) 44.44 
C) 66.67 
D) 76.66 
E) 82.27 
A) 32.21 
B) 44.44 
C) 66.67 
D) 76.66 
E) 82.27

A short-run production function was estimated as At 60 units of labor,what is marginal product?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 12 units of output,what is estimated short-run marginal cost SMC)?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 20 units of output,what is estimated short-run marginal cost SMC)?

average variable cost function is estimated as Which of the following cost functions is associated with this estimate?

A short-run production function was estimated as At 60 units of labor,what is average product?

For the short-run cost function AVC = a + bQ + cQ²,

A short-run production function was estimated as At what level of labor usage does the maximum average product occur?

a cubic production function of the form ,in order for the average and marginal product functions to have their usual theoretical properties,it must be the case that

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene's output is 2,000 units,what is total cost TC)?

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene Enterprises produces 6,000 units,average variable cost AVC)is $_________.

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene's output is 2,000 units,average variable cost AVC)is

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.If Greene Enterprises produces 6,000 units of output,what is estimated short-run marginal cost SMC)?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 20 units of output,what is estimated average total cost ATC)?

is a problem with using a production function of the form Q = aK + bL a > 0,b > 0)?

A short-run production function was estimated as At 20 units of labor,what is marginal product?

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.At what level of output does average variable cost AVC)reach its minimum value for Greene Enterprises?

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.What is total variable cost TVC)at Greene Enterprises when average variable cost AVC)is at its minimum?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 20 units of output,what is estimated average variable cost AVC)?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 12 units of output,what is estimated total cost TC)?

A firm estimates its long-run production function to be Suppose the firm employs 12 units of capital.At _______ units of labor,marginal product of labor begins to diminish.

Managers, profits, and Markets

Demand, supply, and Market Equilibrium

Marginal Analysis for Optimal Decision Making

Basic Estimation Techniques

Theory of Consumer Behavior

Elasticity and Demand

Demand Estimation and Forecasting

Production and Cost in the Short Run

Production and Cost in the Long Run

Managerial Decisions in Competitive Markets

Managerial Decisions for Firms With Market Power

Strategic Decision Making in Oligopoly Markets

Advanced Pricing Techniques

Decisions Under Risk and Uncertainty

Government Regulation of Business

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Exam 10: Production and Cost Estimation

A short-run production function was estimated as At 60 units of labor,what is marginal product?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 12 units of output,what is estimated short-run marginal cost SMC)?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 20 units of output,what is estimated short-run marginal cost SMC)?

average variable cost function is estimated as Which of the following cost functions is associated with this estimate?

A short-run production function was estimated as At 60 units of labor,what is average product?

For the short-run cost function AVC = a + bQ + cQ2,

A short-run production function was estimated as At what level of labor usage does the maximum average product occur?

a cubic production function of the form ,in order for the average and marginal product functions to have their usual theoretical properties,it must be the case that

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene's output is 2,000 units,what is total cost TC)?

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene Enterprises produces 6,000 units,average variable cost AVC)is $_________.

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.When Greene's output is 2,000 units,average variable cost AVC)is

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.If Greene Enterprises produces 6,000 units of output,what is estimated short-run marginal cost SMC)?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 20 units of output,what is estimated average total cost ATC)?

is a problem with using a production function of the form Q = aK + bL a > 0,b > 0)?

A short-run production function was estimated as At 20 units of labor,what is marginal product?

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.At what level of output does average variable cost AVC)reach its minimum value for Greene Enterprises?

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC)function to be Greene Enterprises faces total fixed costs TFC)of $300,000.What is total variable cost TVC)at Greene Enterprises when average variable cost AVC)is at its minimum?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 20 units of output,what is estimated average variable cost AVC)?

Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.Total fixed cost TFC)at Straker Industries is $1,000. If Straker Industries produces 12 units of output,what is estimated total cost TC)?

A firm estimates its long-run production function to be Suppose the firm employs 12 units of capital.At _______ units of labor,marginal product of labor begins to diminish.

Managers, profits, and Markets

Demand, supply, and Market Equilibrium

Marginal Analysis for Optimal Decision Making

Basic Estimation Techniques

Theory of Consumer Behavior

Elasticity and Demand

Demand Estimation and Forecasting

Production and Cost in the Short Run

Production and Cost in the Long Run

Managerial Decisions in Competitive Markets

Managerial Decisions for Firms With Market Power

Strategic Decision Making in Oligopoly Markets

Advanced Pricing Techniques

Decisions Under Risk and Uncertainty

Government Regulation of Business

Filters

For the short-run cost function AVC = a + bQ + cQ²,