Deck 11: Behind the Supply Curve- Inputs and Costs

Question 1

The total product curve:

A) shows the relation between the output and the quantity of a variable input for varying levels of the fixed input.
B) will become flatter as the output increases if there are diminishing returns to the variable input.
C) will be downward sloping if there are diminishing returns to the variable input.
D) will become horizontal when the marginal product of the variable input is constant.

Answer 1

will become flatter as the output increases if there are diminishing returns to the variable input.

Question 2

Lauren has 11 people working in her tangerine grove.The marginal product of the eleventh worker is 13 kilograms of tangerines.If she hires a twelfth worker,the marginal product of that worker will be _____ kilograms.

A) 14
B) 15
C) 12
D) The answer cannot be determined with the information available.

Answer 2

The answer cannot be determined with the information available.

Question 3

Use the following to answer questions :
Figure: The Marginal Product of Labour
(Figure: Marginal Product of Labour)Use Figure: The Marginal Product of Labour.The total product for three workers is _____ kilograms.

A) 51
B) 45
C) 39
D) 15

Answer 3

51

Question 4

Use the following to answer questions :
Figure: The Marginal Product of Labour
(Figure: Marginal Product of Labour)Use Figure: The Marginal Product of Labour.The total product of labour for eight workers is _____ kilograms.

A) 40
B) 35
C) 96
D) 75

Question 5

The idea of diminishing returns to an input in production suggests that,if a local university adds more custodians,the marginal product of labour for the custodial staff will:

A) increase at an increasing rate.
B) increase at a decreasing rate.
C) decrease.
D) not change.

Question 6

A fixed input is one:

A) that only exists in nature,and there is only so much of it.
B) that can be used for one thing only.
C) that can never produce more or less in any period.
D) whose quantity cannot be changed in the short run.

Question 7

A _____ is an organization that produces goods or services for sale.

A) production function
B) firm
C) variable input
D) fixed input

Question 8

An input whose quantity can be changed in the short run is a(n)_____ input.

A) marginal
B) fixed
C) incremental
D) variable

Question 9

In economics,the short run is defined as:

A) less than 1 year.
B) less than 6 months.
C) the period in which some inputs are considered to be fixed in quantity.
D) the period in which some inputs are fixed,but it cannot exceed 1 year.

Question 10

In the long run:

A) all inputs are fixed.
B) inputs are neither variable nor fixed.
C) at least one input is variable and one input is fixed.
D) all inputs are variable.

Question 11

In the short run:

A) all inputs are fixed.
B) all inputs are variable.
C) some inputs are fixed and some inputs are variable.
D) all costs are variable.

Question 12

In economics,the short run is:

A) less than 1 week.
B) less than 1 month.
C) enough time to vary output but not plant capacity.
D) enough time to change all inputs to production.

Question 13

If two firms are identical in all respects except that one has more of the fixed input capital than another,the total product curve for the firm with more capital:

A) must equal the total product curve for the firm with less capital.
B) will lie above the total product curve for the firm with less capital.
C) will lie below the total product curve for the firm with less capital.
D) will show no diminishing marginal returns.

Question 14

The term diminishing returns refers to a:

A) falling interest rate that can be expected as one's investment in a single asset increases.
B) reduction in profits caused by increasing output beyond the optimal point.
C) decrease in total output due to the firm hiring uneducated workers.
D) decrease in the extra output due to the use of an additional unit of a variable input when all other inputs are held constant.

Question 15

Use the following to answer questions :
Figure: The Marginal Product of Labour
(Figure: Marginal Product of Labour)Use Figure: The Marginal Product of Labour.The total product of labour for five workers is _____ kilograms.

A) 11
B) 45
C) 55
D) 75

Question 16

If two firms are identical in all respects except that one has more of the fixed input capital than another,the marginal product curve for the firm with more capital:

A) must equal the marginal product curve for the firm with less capital.
B) will lie above the marginal product curve for the firm with less capital.
C) will lie below the total marginal curve for the firm with less capital.
D) will show no diminishing marginal returns.

Question 17

An input whose quantity CANNOT be changed in the short run is:

A) marginal.
B) fixed.
C) incremental.
D) variable.

Question 18

Diminishing returns to an input occur:

A) when all inputs are fixed.
B) when some inputs are fixed and some are variable.
C) when all inputs are variable.
D) only when there are no fixed inputs.

Question 19

The _____ is the increase in output that is produced when a firm hires an additional worker.

A) average product
B) total product
C) marginal product
D) marginal cost

Question 20

The long run is a planning period:

A) over which a firm can consider all inputs as variable.
B) of at least 5 years.
C) of more than 6 months.
D) of 6 months to 5 years.

Question 21

A farm can produce 1 000 kilograms of wheat per year with two workers and 1 300 kilograms of wheat per year with three workers.The marginal product of the third worker is _____ kilograms.

A) 100
B) 300
C) 1 300
D) 2 300

Question 22

Use the following to answer questions : $$\begin{array}{l}\text { Table: Total Product and Marginal Product }\\\begin{array} { l r } \begin{array} { l } \text { Labour } \\\text { per Day }\end{array} & \begin{array} { c } \text { Total Pro } \\\text { (units per p }\end{array} \\\hline 0 & 0 \\1 & 10 \\2 & 30 \\3 & 70 \\4 & 90 \\5 & 100 \\6 & 107 \\7 & 110 \\8 & 105\end{array}\end{array}$$

-(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.The marginal product of the second worker is _____ units per period.

A) 10
B) 15
C) 20
D) 30

Question 23

Diminishing marginal returns occur when:

A) each additional unit of a variable factor adds more to the total output than the previous unit.
B) each additional unit of a variable factor adds less to the total output than the previous unit.
C) the marginal product of a variable factor is increasing at a decreasing rate.
D) the total product decreases.

Question 24

You own a deli.Which input of production is MOST likely fixed at your deli?

A) the dining room
B) the bread used to make sandwiches
C) the tomato sauce used to make soups
D) the employees

Question 25

Use the following to answer questions :
Figure: The Total Product
(Figure: The Total Product)Use Figure: The Total Product.When L₂ labour is hired,the total product is at a _____ and the marginal product of labour is _____.

A) minimum;zero
B) maximum;zero
C) maximum;positive
D) minimum;positive but falling

Question 26

Use the following to answer questions :
Figure: The Total Product
(Figure: The Total Product)Use Figure: The Total Product.For hiring labour between 0 and L₁,the:

A) marginal product of labour is increasing.
B) marginal product of labour is decreasing.
C) total product is increasing at a diminishing rate.
D) total product is decreasing.

Question 27

Use the following to answer questions : $$\begin{array}{l}\text { Table: Total Product and Marginal Product }\\\begin{array} { l r } \begin{array} { l } \text { Labour } \\\text { per Day }\end{array} & \begin{array} { c } \text { Total Pro } \\\text { (units per p }\end{array} \\\hline 0 & 0 \\1 & 10 \\2 & 30 \\3 & 70 \\4 & 90 \\5 & 100 \\6 & 107 \\7 & 110 \\8 & 105\end{array}\end{array}$$

-(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.The marginal product of the fourth worker is _____ units per period.

A) 20
B) 22.5
C) 50
D) 90

Question 28

Use the following to answer questions :
Figure: The Total Product
(Figure: The Total Product)Use Figure: The Total Product.As labour is hired between L₁ and L₂,the total product is _____ and the marginal product is _____.

A) increasing;positive
B) decreasing;zero
C) increasing;negative
D) increasing;zero

Question 29

Use the following to answer questions :
Figure: The Total Product
(Figure: The Total Product)Use Figure: The Total Product.After hiring L₂ labour and producing at point B on the total product curve,hiring more labour beyond L₂ would cause the:

A) marginal product of labour to rise.
B) marginal product of labour to be negative.
C) total product to be negative.
D) total product to be zero.

Question 30

The _____ curve shows the absolute quantities of output that can be obtained from different quantities of a variable input,assuming other inputs are fixed.

A) total input
B) marginal input
C) total product
D) average total quantity

Question 31

A total product curve indicates the relationship between _____ when all other inputs are fixed.

A) a variable input and price
B) a variable input and a variable cost
C) a variable input and output
D) output and price

Question 32

Use the following to answer questions :
Figure: The Total Product
(Figure: The Total Product)Use Figure: The Total Product.Between points A and B,the marginal product of labour is:

A) increasing.
B) zero.
C) decreasing.
D) infinite.

Question 33

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,the total product is 60,and when she hires four workers,the total product is 75.The slope of the marginal product curve between two and four workers hired is:

A) positive.
B) negative.
C) infinite.
D) zero.

Question 34

Use the following to answer questions :
Figure: The Total Product
(Figure: The Total Product)Use Figure: The Total Product.Labour added from L₁ and up to L₂ is:

A) subject to diminishing marginal returns.
B) adding to the total product at an increasing rate.
C) adding nothing to the total product.
D) adding to the total product at a constant rate.

Question 35

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,the total product is 48,and when she hires four workers,the total product is 45.The marginal product of the third and fourth workers is:

A) increasing and positive.
B) increasing and negative.
C) decreasing and positive.
D) decreasing and negative.

Question 36

When an additional unit of a variable input adds less to the total product than the previous unit,the firm has:

A) increasing returns.
B) diminishing marginal returns.
C) diminishing total returns.
D) diminishing marginal returns and diminishing total returns.

Question 37

The marginal product of labour is the:

A) change in labour divided by the change in total product.
B) slope of the total product of the labour curve.
C) change in the average product divided by the change in the quantity of labour.
D) change in output that occurs when capital increases by one unit.

Question 38

Use the following to answer questions : $$\begin{array}{l}\text { Table: Total Product and Marginal Product }\\\begin{array} { l r } \begin{array} { l } \text { Labour } \\\text { per Day }\end{array} & \begin{array} { c } \text { Total Pro } \\\text { (units per p }\end{array} \\\hline 0 & 0 \\1 & 10 \\2 & 30 \\3 & 70 \\4 & 90 \\5 & 100 \\6 & 107 \\7 & 110 \\8 & 105\end{array}\end{array}$$

-(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.Negative marginal returns begin when the _____ worker is added.

A) fifth
B) sixth
C) seventh
D) eighth

Question 39

Use the following to answer questions :
Figure: The Total Product
(Figure: The Total Product)Use Figure: The Total Product.If the firm hires more than L₂ labour,the total product will _____ because the marginal product of labour is _____.

A) decrease;positive
B) increase;positive
C) decrease;negative
D) increase;negative

Question 40

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,the total product is 60,and when she hires four workers,the total product is 65.The slope of the marginal product curve between two and four workers hired is:

A) positive.
B) zero.
C) infinite.
D) negative.

Question 41

Use the following to answer questions :
Figure: Change in the Total Product
(Figure: Change in the Total Product)Use Figure: Change in the Total Product.As indicated by the change in a production function from TP₁ to TP₂,the marginal product of labour curve has:

A) shifted upward.
B) shifted downward.
C) not moved.
D) become inverted.

Question 42

The marginal product of labour is the change in _____ divided by the change in _____.

A) labour;total product
B) total output;the quantity of labour
C) average output;the quantity of labour
D) total costs;the quantity of labour

Question 43

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production of Bagels }\\\begin{array} { l c } \hline \begin{array} { l } \text { Number } \\\text { of Workers } \\\text { Per Period }\end{array} & \begin{array} { c } \text { Thousands } \\\text { of Bagels } \\\text { Per Period }\end{array} \\\hline 0 & 0 \\1 & 5 \\2 & 15 \\3 & 30 \\4 & 42 \\5 & 51 \\6 & 57 \\7 & 60 \\8 & 50 \\9 & \mathbf { 5 7 } \\\hline\end{array}\end{array}$$

-(Table: Production of Bagels)Use Table: Production of Bagels.The marginal product of the fifth worker is _____ bagels.

A) 5 000
B) 9 000
C) 10 000
D) 12 000

Question 44

The long run is:

A) long enough to vary the quantities of all factors of production.
B) long enough to vary all factors of production except for the amount of capital available.
C) more than 1 month.
D) at least 1 year.

Question 45

In the long run:

A) the firm has time to change the level of all inputs.
B) inputs are neither variable nor fixed.
C) at least one input is free.
D) all inputs are more expensive.

Question 46

A factor of production whose quantity CANNOT be changed in the short run is a(n)_____ factor of production.

A) marginal
B) fixed
C) incremental
D) variable

Question 47

A farm can produce 1 000 kilograms of wheat per year with two workers,1 300 kilograms of wheat per year with three workers,and 1 500 kilograms of wheat per year with four workers.The marginal product of the fifth worker is _____ kilograms.

A) 250
B) 300
C) 1 500
D) less than 200

Question 48

Use the following to answer questions :
Figure: Change in the Total Product
(Figure: Change in the Total Product)Use Figure: Change in the Total Product.Which choice is a likely cause of the shift in production function from TP₁ to TP₂?

A) Workers in the firm are less productive on average.
B) The firm employed more of a variable input in the short run.
C) Available technology has decreased.
D) The firm employed more of a fixed input in the long run.

Question 49

A planning period during which all of a firm's resources are variable is the _____ run.

A) long
B) fixed
C) short
D) nominal

Question 50

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production of Bagels }\\\begin{array} { l c } \hline \begin{array} { l } \text { Number } \\\text { of Workers } \\\text { Per Period }\end{array} & \begin{array} { c } \text { Thousands } \\\text { of Bagels } \\\text { Per Period }\end{array} \\\hline 0 & 0 \\1 & 5 \\2 & 15 \\3 & 30 \\4 & 42 \\5 & 51 \\6 & 57 \\7 & 60 \\8 & 50 \\9 & \mathbf { 5 7 } \\\hline\end{array}\end{array}$$

-(Table: Production of Bagels)Use Table: Production of Bagels.The marginal product of the third worker is _____ bagels.

A) 9 000
B) 10 000
C) 12 000
D) 15 000

Question 51

A factor of production whose quantity can be changed in the SHORT run is a(n)_____ factor of production.

A) marginal
B) fixed
C) incremental
D) variable

Question 52

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production of Bagels }\\\begin{array} { l c } \hline \begin{array} { l } \text { Number } \\\text { of Workers } \\\text { Per Period }\end{array} & \begin{array} { c } \text { Thousands } \\\text { of Bagels } \\\text { Per Period }\end{array} \\\hline 0 & 0 \\1 & 5 \\2 & 15 \\3 & 30 \\4 & 42 \\5 & 51 \\6 & 57 \\7 & 60 \\8 & 50 \\9 & \mathbf { 5 7 } \\\hline\end{array}\end{array}$$

-(Table: Production of Bagels)Use Table: Production of Bagels.Diminishing marginal returns begin with the addition of the _____ worker.

A) third
B) fourth
C) fifth
D) sixth

Question 53

Use the following to answer question 44:
Figure: The Unknown Curve
(Figure: The Unknown Curve)Use Figure: The Unknown Curve.You are a cabinetmaker.You employ several workers to produce kitchen and bathroom cabinets.Your summer intern has drawn a graph showing a relationship between the number of cabinetmakers you employ and the number of cabinets produced.Unfortunately,your intern has failed to identify this curve.It is likely to be the _____ curve.

A) total cost
B) total product
C) marginal product
D) total variable cost

Question 54

You own a deli.Which decision is most likely to be made in the LONG run at your deli?

A) You order more breadsticks.
B) You order more soft drinks for next week.
C) You renovate the second floor of your building to increase the size of the dining room.
D) You advertise for part-time workers.

Question 55

"Diminishing marginal returns" means that:

A) each additional unit of an input will decrease output.
B) each additional unit of an input will increase output,but by smaller and smaller amounts as inputs increase.
C) each additional unit of an input will increase output,but by larger and larger amounts as inputs increase.
D) the firm is maximizing profit.

Question 56

Think about running a restaurant.It is likely the case that:

A) cooks and hosts are variable resources.
B) a building is a variable resource in the short run.
C) cheese and other wholesale food items are fixed resources in the short run.
D) valet parking staff are a fixed resource in the long run.

Question 57

As defined in the text,the long run is a planning period:

A) in which a firm can adjust all resources.
B) that is at least 5 years long.
C) during which the firm must increase sales to stay in business.
D) in which variable resources become fixed.

Question 58

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production of Cabinets }\\\begin{array} { l c c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Cabinets } \boldsymbol { q }\end{array} & \begin{array} { c } \text { Marginal Product } \\\text { of Labour } \\\text { (units per period) }\end{array} \\\hline 0 & 0 & \\1 & 5 & 5 \\2 & 11 & 6 \\3 & 16 & 5 \\4 & 20 & 4 \\5 & 23 & 3 \\6 & 25 & 2 \\7 & 26 & 1 \\8 & 25 & - 1\end{array}\end{array}$$

-(Table: Production of Cabinets)Use Table: The Production of Cabinets.If each cabinetmaker could be hired at no cost,how many workers would your firm employ?

A) two
B) six
C) seven
D) eight

Question 59

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production of Cabinets }\\\begin{array} { l c c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Cabinets } \boldsymbol { q }\end{array} & \begin{array} { c } \text { Marginal Product } \\\text { of Labour } \\\text { (units per period) }\end{array} \\\hline 0 & 0 & \\1 & 5 & 5 \\2 & 11 & 6 \\3 & 16 & 5 \\4 & 20 & 4 \\5 & 23 & 3 \\6 & 25 & 2 \\7 & 26 & 1 \\8 & 25 & - 1\end{array}\end{array}$$

-(Table: Production of Cabinets)Use Table: The Production of Cabinets.After the _____ worker,the firm begins to have diminishing returns to labour.

A) first
B) second
C) third
D) seventh

Question 60

Assuming that all other factors of production are held constant,marginal product is the change in _____ output resulting from a one-unit change in _____.

A) total;a variable input
B) total;a fixed input
C) total;total product
D) per unit;a fixed input

Question 61

The sum of fixed and variable costs is _____ cost.

A) total
B) marginal
C) variable
D) average

Question 62

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production Function for Soybeans }\\\begin{array} { l c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Soybeans (bushels) }\end{array} \\\hline 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}\end{array}$$

-(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The total cost of producing 25 kilograms of soybeans is:

A) $50.
B) $100.
C) $150.
D) $250.

Question 63

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production Function for Soybeans }\\\begin{array} { l c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Soybeans (bushels) }\end{array} \\\hline 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}\end{array}$$

-(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The total cost of producing 60 kilograms of soybeans is:

A) $150.
B) $450.
C) $750.
D) $900.

Question 64

Use the following to answer questions : $$\begin{array}{l}\text { Table: Total Cost Data }\\\begin{array} { c c c } \hline \begin{array} { c } \text { Quantity of } \\\text { Output }\end{array} & \begin{array} { c } \text { Variable } \\\text { Cost } \\( \text { VC) }\end{array} & \begin{array} { c } \text { Total Cost } \\( \boldsymbol { T C } )\end{array} \\\hline 0 & \$ 0 & \$ 50 \\1 & 50 & 100 \\2 & 70 & 120 \\3 & 100 & 150 \\4 & 140 & 190 \\5 & & 240 \\6 & 250 & 300 \\7 & 320 & 370 \\\hline\end{array}\end{array}$$

-The total cost curve shows how the _____ cost depends on the quantity of _____.

A) total;fixed inputs
B) average;variable inputs
C) total;output
D) marginal;output

Question 65

The long run refers to the time period when:

A) a fixed input exists.
B) all inputs are variable.
C) marginal costs are decreasing.
D) diminishing returns raise marginal cost.

Question 66

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production Function for Soybeans }\\\begin{array} { l c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Soybeans (bushels) }\end{array} \\\hline 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}\end{array}$$

-(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The total cost of producing 70 kilograms of soybeans is:

A) $250.
B) $400.
C) $550.
D) $1 024.

Question 67

Use the following to answer questions : $$\begin{array}{l}\text { Table: Total Cost Data }\\\begin{array} { c c c } \hline \begin{array} { c } \text { Quantity of } \\\text { Output }\end{array} & \begin{array} { c } \text { Variable } \\\text { Cost } \\( \text { VC) }\end{array} & \begin{array} { c } \text { Total Cost } \\( \boldsymbol { T C } )\end{array} \\\hline 0 & \$ 0 & \$ 50 \\1 & 50 & 100 \\2 & 70 & 120 \\3 & 100 & 150 \\4 & 140 & 190 \\5 & & 240 \\6 & 250 & 300 \\7 & 320 & 370 \\\hline\end{array}\end{array}$$

-(Table: Total Cost Data)Use Table: Total Cost Data.What is the total variable cost for this bicycle firm when the firm produces 5 bicycles?

A) $50
B) $240
C) $60
D) $190

Question 68

Use the following to answer questions : $$\begin{array}{l}\text { Table: Total Cost Data }\\\begin{array} { c c c } \hline \begin{array} { c } \text { Quantity of } \\\text { Output }\end{array} & \begin{array} { c } \text { Variable } \\\text { Cost } \\( \text { VC) }\end{array} & \begin{array} { c } \text { Total Cost } \\( \boldsymbol { T C } )\end{array} \\\hline 0 & \$ 0 & \$ 50 \\1 & 50 & 100 \\2 & 70 & 120 \\3 & 100 & 150 \\4 & 140 & 190 \\5 & & 240 \\6 & 250 & 300 \\7 & 320 & 370 \\\hline\end{array}\end{array}$$

-A fixed cost:

A) will exist only in the long run.
B) depends on the level of output.
C) is positive,even if the firm doesn't produce any output in the short run.
D) decreases until the point of diminishing returns is reached.

Question 69

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production Function for Soybeans }\\\begin{array} { l c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Soybeans (bushels) }\end{array} \\\hline 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}\end{array}$$

-(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The variable cost of producing 25 kilograms of soybeans is:

A) $50.
B) $100.
C) $150.
D) $250.

Question 70

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production Function for Soybeans }\\\begin{array} { l c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Soybeans (bushels) }\end{array} \\\hline 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}\end{array}$$

-(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The variable cost of producing 60 kilograms of soybeans is:

A) $5.
B) $100.
C) $150.
D) $300.

Question 71

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production Function for Soybeans }\\\begin{array} { l c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Soybeans (bushels) }\end{array} \\\hline 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}\end{array}$$

-(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The variable cost of producing 45 kilograms of soybeans is:

A) $100.
B) $200.
C) $350.
D) $4 500.

Question 72

In the short run,the costs associated with variable inputs are _____,and the costs associated with _____ inputs are _____.

A) variable;fixed;fixed
B) fixed;fixed;variable
C) variable;fixed;variable
D) fixed;fixed;fixed

Question 73

When a firm has diminishing marginal returns:

A) its output is falling.
B) marginal product is falling but is likely to still be positive.
C) total product falls because marginal product is falling and positive.
D) marginal product is always negative.

Question 74

A cost that does NOT depend on the quantity of output produced is:

A) marginal.
B) fixed.
C) variable.
D) average.

Question 75

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production Function for Soybeans }\\\begin{array} { l c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Soybeans (bushels) }\end{array} \\\hline 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}\end{array}$$

-(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The total cost of producing 45 kilograms of soybeans is:

A) $100.
B) $200.
C) $350.
D) $4 500.

Question 76

Use the following to answer questions : $$\begin{array}{l}\text { Table: Total Cost Data }\\\begin{array} { c c c } \hline \begin{array} { c } \text { Quantity of } \\\text { Output }\end{array} & \begin{array} { c } \text { Variable } \\\text { Cost } \\( \text { VC) }\end{array} & \begin{array} { c } \text { Total Cost } \\( \boldsymbol { T C } )\end{array} \\\hline 0 & \$ 0 & \$ 50 \\1 & 50 & 100 \\2 & 70 & 120 \\3 & 100 & 150 \\4 & 140 & 190 \\5 & & 240 \\6 & 250 & 300 \\7 & 320 & 370 \\\hline\end{array}\end{array}$$

-(Table: Total Cost Data)Use Table: Total Cost Data.What is the fixed cost for this bicycle firm?

A) $40
B) $50
C) $100
D) $70

Question 77

The marginal product of labour is NOT:

A) the change in output resulting from a one-unit change in labour.
B) the slope of the total product curve.
C) positive at some levels of input and possibly negative at others.
D) total product divided by total labour.

Question 78

Use the following to answer questions : $$\begin{array}{l}\text { Table: Production Function for Soybeans }\\\begin{array} { l c } \begin{array} { l } \text { Quantity } \\\text { of Labour } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { Soybeans (bushels) }\end{array} \\\hline 0 & 0 \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}\end{array}$$

-(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The fixed cost of producing 25 kilograms of soybeans is:

A) $50.
B) $100.
C) $150.
D) $250.

Question 79

Suppose that when a coal-mining firm hires one,two,three,four,or five workers,the corresponding total output is 10,15,19,22,or 24 tonnes of coal,respectively.The marginal product of the third worker is _____ tonnes of coal.

A) 3
B) 4
C) 15
D) 19

Question 80

Which cost concept is CORRECTLY defined?

A) MC = TC/FC
B) ATC = VC + FC
C) ATC = AVC + AFC
D) TC = AVC + AFC