Question 1

Table 13-18  
-Refer to Table 13-18. What is the total output of five workers?

Accepted Answer

Total output of four workers =

Question 2

Table 13-1  
-Refer to Table 13-1. What is total output when 4 workers are hired?

Accepted Answer

A) -10 
B) 50 
C) 135 
D) 185 
A) -10 
B) 50 
C) 135 
D) 185

Question 3

Table 13-9  
-Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its average-total-cost curve is

Accepted Answer

A) constant. 
B) decreasing. 
C) increasing. 
D) U-shaped. 
A) constant. 
B) decreasing. 
C) increasing. 
D) U-shaped.

Question 4

Table 13-8  
-Refer to Table 13-8. What is the average variable cost of producing 5 units of output?

Accepted Answer

A) $4 
B) $5 
C) $40 
D) $44 
A) $4 
B) $5 
C) $40 
D) $44

Question 5

Table 13-18  
-Refer to Table 13-18. What is the shape of the average-variable-cost curve?

Accepted Answer

AVC = VC/Q, where VC is graphed on the v

Question 6

Pete owns a shoe-shine business. Which of the following costs would be implicit costs? (i)
Shoe polish
(ii)
Rent on the shoe stand
(iii)
Wages Pete could earn delivering newspapers
(iv)
Interest that Pete's money was earning before he spent his savings to set up the shoe-shine business

Accepted Answer

A) (i) and (ii) only 
B) (iv) only 
C) (iii) and (iv) only 
D) (i), (ii), (iii), and (iv) 
A) (i) and (ii) only 
B) (iv) only 
C) (iii) and (iv) only 
D) (i), (ii), (iii), and (iv)

Question 7

Profit equals total revenue minus total cost.

Accepted Answer

A) True 
 B)False

Question 8

Economists assume that the typical person who starts her own business does so with the intention of

Accepted Answer

A) donating the profits from her business to charity. 
B) capturing the highest number of sales in her industry. 
C) maximizing profits. 
D) minimizing costs. 
A) donating the profits from her business to charity. 
B) capturing the highest number of sales in her industry. 
C) maximizing profits. 
D) minimizing costs.

Question 9

Kelly has decided to start his own business giving sailing lessons. To purchase equipment for the business, Kelly withdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is Kelly's annual opportunity cost of the financial capital that has been invested in the business?

Accepted Answer

A) $30 
B) $140 
C) $170 
D) $300 
A) $30 
B) $140 
C) $170 
D) $300

Question 10

Table 13-11  
-Refer to Table 13-11. The average variable cost of producing 4 posters is

Accepted Answer

A) $2.00. 
B) $2.50. 
C) $3.33. 
D) $5.00. 
A) $2.00. 
B) $2.50. 
C) $3.33. 
D) $5.00.

Question 11

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. What is the total cost of producing 101 units?

Accepted Answer

A) $46.53 
B) $800 
C) $4,800 
D) $5,300 
A) $46.53 
B) $800 
C) $4,800 
D) $5,300

Question 12

​Table 13-16  
-Refer to Table 13-16. What is the marginal cost of the 4th unit of output?

Accepted Answer

A) $​40 
B) ​$52 
C) ​$68 
D) ​$136 
A) $​40 
B) ​$52 
C) ​$68 
D) ​$136

Question 13

Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?

Accepted Answer

A) 2 houses 
B) 3 houses 
C) 5 houses 
D) 8 houses 
A) 2 houses 
B) 3 houses 
C) 5 houses 
D) 8 houses

Question 14

Total cost is the

Accepted Answer

A) amount a firm receives for the sale of its output. 
B) fixed cost less variable cost. 
C) market value of the inputs a firm uses in production. 
D) quantity of output minus the quantity of inputs used to make a good. 
A) amount a firm receives for the sale of its output. 
B) fixed cost less variable cost. 
C) market value of the inputs a firm uses in production. 
D) quantity of output minus the quantity of inputs used to make a good.

Question 15

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

Accepted Answer

A) diseconomies of scale because total cost is rising as output rises. 
B) constant returns to scale because average total cost is constant as output rises. 
C) diseconomies of scale because average total cost is rising as output rises. 
D) economies of scale because average total cost is falling as output rises. 
A) diseconomies of scale because total cost is rising as output rises. 
B) constant returns to scale because average total cost is constant as output rises. 
C) diseconomies of scale because average total cost is rising as output rises. 
D) economies of scale because average total cost is falling as output rises.

Question 16

If marginal cost is equal to average total cost, then

Accepted Answer

A) marginal cost is minimized. 
B) average total cost is minimized. 
C) average variable cost is minimized. 
D) marginal cost is zero. 
A) marginal cost is minimized. 
B) average total cost is minimized. 
C) average variable cost is minimized. 
D) marginal cost is zero.

Question 17

Firms may experience diseconomies of scale when

Accepted Answer

A) they are too small to take advantage of specialization. 
B) large management structures are bureaucratic and inefficient. 
C) there are too few employees, and managers do not have enough to do. 
D) average fixed costs begin to rise again. 
A) they are too small to take advantage of specialization. 
B) large management structures are bureaucratic and inefficient. 
C) there are too few employees, and managers do not have enough to do. 
D) average fixed costs begin to rise again.

Question 18

Pete owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements? (i)
Shoe polish
(ii)
Rent on the shoe stand
(iii)
Wages Pete could earn delivering newspapers
(iv)
Interest that Pete's money was earning before he spent his savings to set up the shoe-shine business

Accepted Answer

A) (i) only 
B) (i) and (ii) only 
C) (iii) and (iv) only 
D) (i), (ii), (iii), and (iv) 
A) (i) only 
B) (i) and (ii) only 
C) (iii) and (iv) only 
D) (i), (ii), (iii), and (iv)

Question 19

Average total cost is very high when a small amount of output is produced because

Accepted Answer

A) average variable cost is high. 
B) average fixed cost is high. 
C) marginal cost is high. 
D) marginal product is high. 
A) average variable cost is high. 
B) average fixed cost is high. 
C) marginal cost is high. 
D) marginal product is high.

Question 20

The things that must be forgone to acquire a good are called

Accepted Answer

A) implicit costs. 
B) opportunity costs. 
C) explicit costs. 
D) accounting costs. 
A) implicit costs. 
B) opportunity costs. 
C) explicit costs. 
D) accounting costs.

Table 13-18 -Refer to Table 13-18. What is the total output of five workers?

Table 13-1 -Refer to Table 13-1. What is total output when 4 workers are hired?

Table 13-9 -Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its average-total-cost curve is

Table 13-8 -Refer to Table 13-8. What is the average variable cost of producing 5 units of output?

Table 13-18 -Refer to Table 13-18. What is the shape of the average-variable-cost curve?

Pete owns a shoe-shine business. Which of the following costs would be implicit costs? (i) Shoe polish (ii) Rent on the shoe stand (iii) Wages Pete could earn delivering newspapers (iv) Interest that Pete's money was earning before he spent his savings to set up the shoe-shine business

Profit equals total revenue minus total cost.

Economists assume that the typical person who starts her own business does so with the intention of

Table 13-11 -Refer to Table 13-11. The average variable cost of producing 4 posters is

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. What is the total cost of producing 101 units?

Table 13-16 -Refer to Table 13-16. What is the marginal cost of the 4th unit of output?

Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?

Total cost is the

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

If marginal cost is equal to average total cost, then

Firms may experience diseconomies of scale when

Average total cost is very high when a small amount of output is produced because

The things that must be forgone to acquire a good are called

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

Exam 13: The Costs of Production

Table 13-18 -Refer to Table 13-18. What is the total output of five workers?

Table 13-1 -Refer to Table 13-1. What is total output when 4 workers are hired?

Table 13-9 -Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its average-total-cost curve is

Table 13-8 -Refer to Table 13-8. What is the average variable cost of producing 5 units of output?

Table 13-18 -Refer to Table 13-18. What is the shape of the average-variable-cost curve?

Pete owns a shoe-shine business. Which of the following costs would be implicit costs? (i) Shoe polish (ii) Rent on the shoe stand (iii) Wages Pete could earn delivering newspapers (iv) Interest that Pete's money was earning before he spent his savings to set up the shoe-shine business

Profit equals total revenue minus total cost.

Economists assume that the typical person who starts her own business does so with the intention of

Table 13-11 -Refer to Table 13-11. The average variable cost of producing 4 posters is

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. What is the total cost of producing 101 units?

​Table 13-16 -Refer to Table 13-16. What is the marginal cost of the 4th unit of output?

Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?

Total cost is the

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

If marginal cost is equal to average total cost, then

Firms may experience diseconomies of scale when

Average total cost is very high when a small amount of output is produced because

The things that must be forgone to acquire a good are called

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

Table 13-16 -Refer to Table 13-16. What is the marginal cost of the 4th unit of output?