Exam 21: Production and Costs

As the marginal physical product of U.S. workers _________________, the marginal cost of goods produced in the U.S. ______________ and unit costs _____________. This makes American goods ________________ competitive in the global marketplace.

-Refer to Situation 21-3. How many gizmos does Gizmos, Inc. produce?

-Refer to Situation 21-3. What are the total variable costs?

If a firm earns normal profit, then it has generated revenues

Unit cost refers to

Exhibit 21-1 -Refer to Exhibit 21-1. The numbers that go in blanks (A) and (B) are, respectively,

Which of the following statements is false?

As the marginal physical product of labor rises in the U.S., the marginal cost of goods produced in the U.S. rises which makes it harder for U.S. producers to compete in the global marketplace.

Which of the following statements is false?

A fixed input is an input whose quantity

Exhibit 21-2 ​ -Refer to Exhibit 21-2. Diminishing marginal returns set in with the addition of which unit of the variable input?

Exhibit 21-1 -Refer to Exhibit 21-l. The numbers that go in blanks (E) and (F) are, respectively,

Accounting profit is always greater than or equal to economic profit.

One of the reasons why economies of scale exist is that the opportunity for labor specialization tends to increase as the size of the firm grows.

Exhibit 21-2 ​ -Refer to Exhibit 21-2. What is the average variable cost of producing 90 units of output?

Exhibit 21-4 ​ -Refer to Exhibit 21-4. Curve C is a(n) __________ cost curve.

Exhibit 21-13 ​ -Refer to Exhibit 21-13. What dollar amounts go in blanks (R) and (S), respectively?

If a firm is earning an economic profit, it is earning an accounting profit, too.

An unrecoverable cost that should be disregarded in any current or future decision is also called a(n) __________ cost.

In the long run, only variable costs exist.