Question 1

In the table above,what is the average product of four units of labor?

Accepted Answer

A) 20 
B) 60 
C) 80 
D) 100 
E) 350 
A) 20 
B) 60 
C) 80 
D) 100 
E) 350

Question 2

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
  If labor is fixed at three units,how much does the second unit of capital add to total output?

Accepted Answer

A) 100 
B) 150 
C) 210 
D) 360 
E) none of the above 
A) 100 
B) 150 
C) 210 
D) 360 
E) none of the above

Question 3

production function measures the relation between

Accepted Answer

A) input prices and output prices. 
B) the quantity of inputs and the quantity of output. 
C) input prices and the quantity of output. 
D) the quantity of inputs and input prices. 
E) none of the above 
A) input prices and output prices. 
B) the quantity of inputs and the quantity of output. 
C) input prices and the quantity of output. 
D) the quantity of inputs and input prices. 
E) none of the above

Question 4

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit.   If the firm produces 40 units of output,what is average fixed cost?

Accepted Answer

A) $7.50 
B) $25 
C) $120 
D) $600 
E) none of the above 
A) $7.50 
B) $25 
C) $120 
D) $600 
E) none of the above

Question 5

To answer,refer to the following: "Ford built 18 vehicles per auto employee in North America last year,while GM could only manage 12." The Wall Street Journal)
In comparison with GM,Ford had

Accepted Answer

A) higher average variable cost. 
B) lower average variable cost. 
C) higher total variable cost. 
D) both a and c 
E) none of the above 
A) higher average variable cost. 
B) lower average variable cost. 
C) higher total variable cost. 
D) both a and c 
E) none of the above

Question 6

In the table above,how much does the third unit of labor ADD to total output?

Accepted Answer

A) 100 
B) 125 
C) 150 
D) 300 
E) none of the above 
A) 100 
B) 125 
C) 150 
D) 300 
E) none of the above

Question 7

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
  If the capital stock is fixed at four units and there are three units of labor,what is the average product of labor?

Accepted Answer

A) 50 
B) 140 
C) 157.5 
D) 170 
E) none of the above 
A) 50 
B) 140 
C) 157.5 
D) 170 
E) none of the above

Question 8

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
  If the capital stock is fixed at one unit,diminishing returns begin with the

Accepted Answer

A) first unit of labor. 
B) second unit of labor. 
C) third unit of labor. 
D) fourth unit of labor. 
E) fifth unit of labor. 
A) first unit of labor. 
B) second unit of labor. 
C) third unit of labor. 
D) fourth unit of labor. 
E) fifth unit of labor.

Question 9

If labor is fixed at 5 units,how much does the second unit of capital add to total output?   Amount of total output produced from various combinations of labor and capital.

Accepted Answer

A) 490 
B) 390 
C) 50 
D) 100 
E) none of the above 
A) 490 
B) 390 
C) 50 
D) 100 
E) none of the above

Question 10

Average total cost

Accepted Answer

A) increases as output increases. 
B) decreases as output increases. 
C) increases if marginal cost is increasing. 
D) increases if marginal cost is greater than average total cost. 
E) both c and d 
A) increases as output increases. 
B) decreases as output increases. 
C) increases if marginal cost is increasing. 
D) increases if marginal cost is greater than average total cost. 
E) both c and d

Question 11

The following graph shows the marginal and average product curves for labor,the firm's only variable input.The monthly wage for labor is $2,800.Fixed cost is $160,000.   When the firm uses 40 units of labor,what is average total cost at this output?

Accepted Answer

A) $140 
B) $40 
C) $70 
D) $170 
E) none of the above 
A) $140 
B) $40 
C) $70 
D) $170 
E) none of the above

Question 12

A firm produces 4,000 units of output using 500 workers.Marginal cost is $10,the wage rate is $160,and total fixed cost is $100,000.When output is 4,000 units,

Accepted Answer

A) average variable cost is decreasing. 
B) average variable cost is increasing. 
C) average total cost is decreasing. 
D) average total cost is increasing. 
E) both a and c 
A) average variable cost is decreasing. 
B) average variable cost is increasing. 
C) average total cost is decreasing. 
D) average total cost is increasing. 
E) both a and c

Question 13

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit.   If the firm produces 180 units of output,what is total variable cost?

Accepted Answer

A) $1,200 
B) $1,800 
C) $14,400 
D) $17,100 
E) none of the above 
A) $1,200 
B) $1,800 
C) $14,400 
D) $17,100 
E) none of the above

Question 14

Based on the following table,what is average fixed cost when 150 units of output are produced?

Accepted Answer

A) $2 
B) $9 
C) $11 
D) $16.50 
E) none of the above 
A) $2 
B) $9 
C) $11 
D) $16.50 
E) none of the above

Question 15

Based on the following table,what is total variable cost when 100 units of output are produced?

Accepted Answer

A) $5 
B) $10.50 
C) $105 
D) $1050 
E) none of the above 
A) $5 
B) $10.50 
C) $105 
D) $1050 
E) none of the above

Question 16

Diminishing returns refers to the decrease in

Accepted Answer

A) profit that results from increases in output. 
B) average total cost that results from decreases in input prices. 
C) average product that results from increases in the variable input. 
D) marginal product that results from increases in the variable input. 
E) long-run average cost that results from increases in output. 
A) profit that results from increases in output. 
B) average total cost that results from decreases in input prices. 
C) average product that results from increases in the variable input. 
D) marginal product that results from increases in the variable input. 
E) long-run average cost that results from increases in output.

Question 17

Given the table below,what is average total cost when 200 units of output are produced?

Accepted Answer

A) $2.30 
B) $2.50 
C) $4.00 
D) $4.80 
E) none of the above 
A) $2.30 
B) $2.50 
C) $4.00 
D) $4.80 
E) none of the above

Question 18

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
  If capital is fixed at three units,how much does the fourth unit of labor add to total output?

Accepted Answer

A) 16 
B) 28 
C) 34 
D) 36 
E) none of the above 
A) 16 
B) 28 
C) 34 
D) 36 
E) none of the above

Question 19

Marginal cost

Accepted Answer

A) measures how total cost changes when input prices change. 
B) measures how total cost changes when one more unit of output is produced. 
C) is less than average cost when average cost is decreasing. 
D) both a and b 
E) both b and c 
A) measures how total cost changes when input prices change. 
B) measures how total cost changes when one more unit of output is produced. 
C) is less than average cost when average cost is decreasing. 
D) both a and b 
E) both b and c

Question 20

Above is a firm's average product of labor and marginal product of labor curves.The price of labor is $60 per unit.When the firm uses 4 units of labor,what is AVERAGE variable cost?

Accepted Answer

A) $10 
B) $24 
C) $124 
D) $240 
E) none of the above 
A) $10 
B) $24 
C) $124 
D) $240 
E) none of the above

In the table above,what is the average product of four units of labor?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If labor is fixed at three units,how much does the second unit of capital add to total output?

production function measures the relation between

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit. If the firm produces 40 units of output,what is average fixed cost?

To answer,refer to the following: "Ford built 18 vehicles per auto employee in North America last year,while GM could only manage 12." The Wall Street Journal) In comparison with GM,Ford had

In the table above,how much does the third unit of labor ADD to total output?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If the capital stock is fixed at four units and there are three units of labor,what is the average product of labor?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If the capital stock is fixed at one unit,diminishing returns begin with the

If labor is fixed at 5 units,how much does the second unit of capital add to total output? Amount of total output produced from various combinations of labor and capital.

Average total cost

The following graph shows the marginal and average product curves for labor,the firm's only variable input.The monthly wage for labor is $2,800.Fixed cost is $160,000. When the firm uses 40 units of labor,what is average total cost at this output?

A firm produces 4,000 units of output using 500 workers.Marginal cost is $10,the wage rate is $160,and total fixed cost is $100,000.When output is 4,000 units,

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit. If the firm produces 180 units of output,what is total variable cost?

Based on the following table,what is average fixed cost when 150 units of output are produced?

Based on the following table,what is total variable cost when 100 units of output are produced?

Diminishing returns refers to the decrease in

Given the table below,what is average total cost when 200 units of output are produced?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If capital is fixed at three units,how much does the fourth unit of labor add to total output?

Marginal cost

Above is a firm's average product of labor and marginal product of labor curves.The price of labor is $60 per unit.When the firm uses 4 units of labor,what is AVERAGE variable cost?

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 Long Run

Production and Cost Estimation

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 8: Production and Cost in the Short Run

In the table above,what is the average product of four units of labor?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If labor is fixed at three units,how much does the second unit of capital add to total output?

production function measures the relation between

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit. If the firm produces 40 units of output,what is average fixed cost?

To answer,refer to the following: "Ford built 18 vehicles per auto employee in North America last year,while GM could only manage 12." The Wall Street Journal) In comparison with GM,Ford had

In the table above,how much does the third unit of labor ADD to total output?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If the capital stock is fixed at four units and there are three units of labor,what is the average product of labor?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If the capital stock is fixed at one unit,diminishing returns begin with the

If labor is fixed at 5 units,how much does the second unit of capital add to total output? Amount of total output produced from various combinations of labor and capital.

Average total cost

The following graph shows the marginal and average product curves for labor,the firm's only variable input.The monthly wage for labor is $2,800.Fixed cost is $160,000. When the firm uses 40 units of labor,what is average total cost at this output?

A firm produces 4,000 units of output using 500 workers.Marginal cost is $10,the wage rate is $160,and total fixed cost is $100,000.When output is 4,000 units,

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit. If the firm produces 180 units of output,what is total variable cost?

Based on the following table,what is average fixed cost when 150 units of output are produced?

Based on the following table,what is total variable cost when 100 units of output are produced?

Diminishing returns refers to the decrease in

Given the table below,what is average total cost when 200 units of output are produced?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If capital is fixed at three units,how much does the fourth unit of labor add to total output?

Marginal cost

Above is a firm's average product of labor and marginal product of labor curves.The price of labor is $60 per unit.When the firm uses 4 units of labor,what is AVERAGE variable cost?

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 Long Run

Production and Cost Estimation

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