Question 1

Table 13-7
The Flying Elvis Copter Rides
  
-Refer to Table 13-7.What is the value of K?

Accepted Answer

A)  $25 
B)  $50 
C)  $110 
D)  $220 
A)  $25 
B)  $50 
C)  $110 
D)  $220

Question 2

Table 13-4
Charles's Math Tutoring
  
-Refer to Table 13-4.What is the marginal product of the second worker?

Accepted Answer

A)  15 students 
B)  20 students 
C)  22.5 students 
D)  25 students 
A)  15 students 
B)  20 students 
C)  22.5 students 
D)  25 students

Question 3

Which of the following must always be true as the quantity of output increases?

Accepted Answer

A)  Marginal cost must rise. 
B)  Average total cost must rise. 
C)  Average variable cost must rise. 
D)  Average fixed cost must fall. 
A)  Marginal cost must rise. 
B)  Average total cost must rise. 
C)  Average variable cost must rise. 
D)  Average fixed cost must fall.

Question 4

Figure 13-5
  
-Refer to Figure 13-5.Which of the curves is most likely to represent average fixed cost?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
A)  A 
B)  B 
C)  C 
D)  D

Question 5

The graph of the production function plots total cost versus quantity of output.

Accepted Answer

A) True 
 B)False

Question 6

Table 13-7
The Flying Elvis Copter Rides
  
-Refer to Table 13-7.What is the value of F?

Accepted Answer

A)  $50 
B)  $100 
C)  $150 
D)  $200 
A)  $50 
B)  $100 
C)  $150 
D)  $200

Question 7

Table 13-5
  
-Refer to Table 13-5.Assume that fixed costs are $500,and variable costs are $100 per worker.For this firm,what are the shapes of the production function and the total-cost curve?

Accepted Answer

A)  Both the production function and total-cost curve are increasing at an increasing rate. 
B)  Both the production function and total-cost curve are increasing at a decreasing rate. 
C)  The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate. 
D)  The production function is increasing at an increasing rate, whereas the total-cost function is increasing at a decreasing rate. 
A)  Both the production function and total-cost curve are increasing at an increasing rate. 
B)  Both the production function and total-cost curve are increasing at a decreasing rate. 
C)  The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate. 
D)  The production function is increasing at an increasing rate, whereas the total-cost function is increasing at a decreasing rate.

Question 8

Consider the following information about baseball production at Bobby's Baseball Factory:  
Bobby pays all his workers the same wage,and labor is his only variable cost.From this information we can conclude that Bobby's average variable cost decreases

Accepted Answer

A)  as output rises from 0 to 10, but rises after that. 
B)  as output rises from 0 to 26, but rises after that. 
C)  as output rises from 0 to 33, but increases after that. 
D)  continually as output rises. 
A)  as output rises from 0 to 10, but rises after that. 
B)  as output rises from 0 to 26, but rises after that. 
C)  as output rises from 0 to 33, but increases after that. 
D)  continually as output rises.

Question 9

The length of the short run

Accepted Answer

A)  is different for different types of firms. 
B)  can never exceed 3 years. 
C)  can never exceed 1 year. 
D)  is always less than 6 months. 
A)  is different for different types of firms. 
B)  can never exceed 3 years. 
C)  can never exceed 1 year. 
D)  is always less than 6 months.

Question 10

Diseconomies of scale occur when a firm's

Accepted Answer

A)  marginal costs are constant as output increases. 
B)  long-run average total costs are decreasing as output increases. 
C)  long-run average total costs are increasing as output increases. 
D)  marginal costs are equal to average total costs for all levels of output. 
A)  marginal costs are constant as output increases. 
B)  long-run average total costs are decreasing as output increases. 
C)  long-run average total costs are increasing as output increases. 
D)  marginal costs are equal to average total costs for all levels of output.

Question 11

If the average total cost curve is falling,what is necessarily true of the marginal cost curve? If the average total cost curve is rising,what is necessarily true of the marginal cost curve?

Accepted Answer

When average total cost curve

Question 12

Figure 13-1
  
-Refer to Figure 13-1.Suppose the production function shifts from TP2 to TP1.Such a shift in the total product curve is most likely due to a decrease in the firm's

Accepted Answer

A)  costs of production. 
B)  product price. 
C)  market share. 
D)  productivity. 
A)  costs of production. 
B)  product price. 
C)  market share. 
D)  productivity.

Question 13

Table 13-7
The Flying Elvis Copter Rides
  
-Refer to Table 13-7.What is the value of R?

Accepted Answer

A)  $16.67 
B)  $50 
C)  $136.67 
D)  $360 
A)  $16.67 
B)  $50 
C)  $136.67 
D)  $360

Question 14

Table 13-1
  
-Refer to Table 13-1.What is total output when 3 workers are hired?

Accepted Answer

A)  10 
B)  40 
C)  70 
D)  120 
A)  10 
B)  40 
C)  70 
D)  120

Question 15

The Big Blue Sky jet company has long-run total costs of $20 million if it produces 5 jets and long-run total costs of $24 million if it produces 6 jets.The Big Blue Sky jet company is experiencing

Accepted Answer

A)  economies of scale. 
B)  constant returns to scale. 
C)  diseconomies of scale. 
D)  negative profits. 
A)  economies of scale. 
B)  constant returns to scale. 
C)  diseconomies of scale. 
D)  negative profits.

Question 16

In the long run Willie's Chocolate Factory incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units.For this range of output,Willie's exhibits

Accepted Answer

A)  economies of scale. 
B)  constant returns to scale. 
C)  diseconomies of scale. 
D)  efficient scale. 
A)  economies of scale. 
B)  constant returns to scale. 
C)  diseconomies of scale. 
D)  efficient scale.

Question 17

When a firm's only variable input is labor,then the slope of the production function measures the

Accepted Answer

A)  quantity of labor. 
B)  quantity of output. 
C)  total cost. 
D)  marginal product of labor. 
A)  quantity of labor. 
B)  quantity of output. 
C)  total cost. 
D)  marginal product of labor.

Question 18

Scenario 13-9
Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each.
-Refer to Scenario 13-9.An economist would calculate the total profit for one photo frame to be

Accepted Answer

A)  $10. 
B)  $15. 
C)  $20. 
D)  $25. 
A)  $10. 
B)  $15. 
C)  $20. 
D)  $25.

Question 19

The shape of the total-cost curve is unrelated to the shape of the production function.

Accepted Answer

A) True 
 B)False

Question 20

When average total cost is above marginal cost,average total cost is rising.

Accepted Answer

A) True 
 B)False

Exam 13: The Costs of Production.

Table 13-7 The Flying Elvis Copter Rides -Refer to Table 13-7.What is the value of K?

Table 13-4 Charles's Math Tutoring -Refer to Table 13-4.What is the marginal product of the second worker?

Which of the following must always be true as the quantity of output increases?

Figure 13-5 -Refer to Figure 13-5.Which of the curves is most likely to represent average fixed cost?

The graph of the production function plots total cost versus quantity of output.

Table 13-7 The Flying Elvis Copter Rides -Refer to Table 13-7.What is the value of F?

Table 13-5 -Refer to Table 13-5.Assume that fixed costs are $500,and variable costs are $100 per worker.For this firm,what are the shapes of the production function and the total-cost curve?

Consider the following information about baseball production at Bobby's Baseball Factory: Bobby pays all his workers the same wage,and labor is his only variable cost.From this information we can conclude that Bobby's average variable cost decreases

The length of the short run

Diseconomies of scale occur when a firm's

If the average total cost curve is falling,what is necessarily true of the marginal cost curve? If the average total cost curve is rising,what is necessarily true of the marginal cost curve?

Figure 13-1 -Refer to Figure 13-1.Suppose the production function shifts from TP2 to TP1.Such a shift in the total product curve is most likely due to a decrease in the firm's

Table 13-7 The Flying Elvis Copter Rides -Refer to Table 13-7.What is the value of R?

Table 13-1 -Refer to Table 13-1.What is total output when 3 workers are hired?

The Big Blue Sky jet company has long-run total costs of $20 million if it produces 5 jets and long-run total costs of $24 million if it produces 6 jets.The Big Blue Sky jet company is experiencing

In the long run Willie's Chocolate Factory incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units.For this range of output,Willie's exhibits

When a firm's only variable input is labor,then the slope of the production function measures the

The shape of the total-cost curve is unrelated to the shape of the production function.

When average total cost is above marginal cost,average total cost is rising.

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 Market For the Factors of Production.

Earnings and Discrimination.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

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