Question 1

The marginal product of labor equals the change in ________ from a one-unit increase in the quantity of labor.

Accepted Answer

A)  total product 
B)  average product 
C)  total cost 
D)  the slope of the average product curve 
E)  the wage rate 
A)  total product 
B)  average product 
C)  total cost 
D)  the slope of the average product curve 
E)  the wage rate

Question 2

This month,the local widget factory produced 100 widgets.The total variable cost of production was $500 and the average total cost of production was $8.
a.What is the total cost?
b.What is the total fixed cost?
c.What is the average fixed cost?
d.What is the average variable cost?

Accepted Answer

a.Total cost can be calculated as averag

Question 3

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.When does the average product of labor equal the marginal product of labor?

Accepted Answer

A)  between the 4th and 5th workers 
B)  at the 5th worker 
C)  between the 5th and 6th workers 
D)  between the 6th and 7th workers 
E)  between 0 workers and the 3rd worker 
A)  between the 4th and 5th workers 
B)  at the 5th worker 
C)  between the 5th and 6th workers 
D)  between the 6th and 7th workers 
E)  between 0 workers and the 3rd worker

Question 4

Which of the following is FALSE?

Accepted Answer

A)  Long-run average variable costs equal long-run average total costs. 
B)  Fixed costs increase in the long run. 
C)  As a firm produces more output, eventually it experiences diseconomies of scale. 
D)  In the long run, both the amount of capital and labor used by the firm can be changed. 
E)  In the long run, the firm has no fixed inputs. 
A)  Long-run average variable costs equal long-run average total costs. 
B)  Fixed costs increase in the long run. 
C)  As a firm produces more output, eventually it experiences diseconomies of scale. 
D)  In the long run, both the amount of capital and labor used by the firm can be changed. 
E)  In the long run, the firm has no fixed inputs.

Question 5

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 6 workers,her average total cost equals

Accepted Answer

A)  $2,400. 
B)  $300. 
C)  $7.50. 
D)  $10.00. 
E)  $4,200. 
A)  $2,400. 
B)  $300. 
C)  $7.50. 
D)  $10.00. 
E)  $4,200.

Question 6

What is the difference between decreasing marginal returns and negative marginal returns?

Accepted Answer

Decreasing marginal returns occur when t

Question 7

The figure above shows some of a firm's cost curves.
-Curve B is the firm's

Accepted Answer

A)  marginal cost curve. 
B)  total cost curve. 
C)  average total cost curve. 
D)  total variable cost curve. 
E)  total fixed cost curve. 
A)  marginal cost curve. 
B)  total cost curve. 
C)  average total cost curve. 
D)  total variable cost curve. 
E)  total fixed cost curve.

Question 8

Which of the following is an implicit cost?
i.wages paid to workers
ii.the normal profit
iii.the electric bill

Accepted Answer

A)  i only 
B)  ii only 
C)  i and ii 
D)  ii and iii 
E)  Neither i, ii, nor iii 
A)  i only 
B)  ii only 
C)  i and ii 
D)  ii and iii 
E)  Neither i, ii, nor iii

Question 9

The short run is a time period that is

Accepted Answer

A)  equal to a day. 
B)  too short to change the amount of labor hired. 
C)  too short to change the size of the firm's plant. 
D)  long enough to change the size of the firm's plant. 
E)  too short to change the amount of any resource the firm employs. 
A)  equal to a day. 
B)  too short to change the amount of labor hired. 
C)  too short to change the size of the firm's plant. 
D)  long enough to change the size of the firm's plant. 
E)  too short to change the amount of any resource the firm employs.

Question 10

The opportunity cost of a firm using its own capital is

Accepted Answer

A)  economic depreciation. 
B)  self ownership depreciation. 
C)  economic loss. 
D)  normal loss. 
E)  capital loss. 
A)  economic depreciation. 
B)  self ownership depreciation. 
C)  economic loss. 
D)  normal loss. 
E)  capital loss.

Question 11

The figure above shows some of a firm's cost curves.
-Based on the figure above,curve C is the firm's

Accepted Answer

A)  marginal cost curve. 
B)  total cost curve. 
C)  average total cost curve. 
D)  average variable cost curve. 
E)  average fixed cost curve. 
A)  marginal cost curve. 
B)  total cost curve. 
C)  average total cost curve. 
D)  average variable cost curve. 
E)  average fixed cost curve.

Question 12

-Paulette owns a pizza parlor.Her total cost schedule is in the above table.Her marginal cost of producing the fifth pizza is

Accepted Answer

A)  $8. 
B)  between $8.01 and $10.00. 
C)  between $10.01 and $14.00. 
D)  between $14.01 and $78.00. 
E)  more than $78.01. 
A)  $8. 
B)  between $8.01 and $10.00. 
C)  between $10.01 and $14.00. 
D)  between $14.01 and $78.00. 
E)  more than $78.01.

Question 13

The marginal product of labor is

Accepted Answer

A)  total product divided by labor. 
B)  the change in total product divided by the increase in labor. 
C)  a measure of labor. 
D)  output that does not meet quality specifications. 
E)  total product minus the quantity of labor. 
A)  total product divided by labor. 
B)  the change in total product divided by the increase in labor. 
C)  a measure of labor. 
D)  output that does not meet quality specifications. 
E)  total product minus the quantity of labor.

Question 14

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 2 workers,her average variable cost equals

Accepted Answer

A)  $2,400. 
B)  $300. 
C)  $6.00. 
D)  $10.00. 
E)  $600. 
A)  $2,400. 
B)  $300. 
C)  $6.00. 
D)  $10.00. 
E)  $600.

Question 15

One of the major reasons for the U-shaped average total cost curve is the fact that

Accepted Answer

A)  there are increasing returns from labor regardless of the number of workers employed. 
B)  there eventually are decreasing returns from labor as more workers are employed. 
C)  prices fall as output increases. 
D)  the average fixed cost increases as more output is produced. 
E)  the variable cost decreases as more output is produced. 
A)  there are increasing returns from labor regardless of the number of workers employed. 
B)  there eventually are decreasing returns from labor as more workers are employed. 
C)  prices fall as output increases. 
D)  the average fixed cost increases as more output is produced. 
E)  the variable cost decreases as more output is produced.

Question 16

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?

Accepted Answer

A)  $2 
B)  $225 
C)  $9,000 
D)  $8,000 
E)  More information is needed to determine the answer. 
A)  $2 
B)  $225 
C)  $9,000 
D)  $8,000 
E)  More information is needed to determine the answer.

Question 17

-Ajax Manufacturing has a fixed scale of plant with the levels of total product given in the table for different levels of labor.Complete the table by calculating the average product and marginal product.

Accepted Answer

@#IMG-DLM& The compl

Question 18

A firm's total revenue minus its total opportunity cost is called its

Accepted Answer

A)  accounting profit. 
B)  normal profit. 
C)  economic profit. 
D)  abnormal profit. 
E)  entrepreneur's profit. 
A)  accounting profit. 
B)  normal profit. 
C)  economic profit. 
D)  abnormal profit. 
E)  entrepreneur's profit.

Question 19

Jake is a corn farmer in Nebraska.He rents his land on a long-term lease for $250,000 a year.He pays his farm hands $128,000 a year.Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost? Briefly explain your answers.

Accepted Answer

Jake's rent is a fixed cost.He is rentin

Question 20

The average fixed cost curve

Accepted Answer

A)  is always positively sloped. 
B)  is U-shaped. 
C)  has an upside-down U shape. 
D)  is always negatively sloped. 
E)  is horizontal. 
A)  is always positively sloped. 
B)  is U-shaped. 
C)  has an upside-down U shape. 
D)  is always negatively sloped. 
E)  is horizontal.

The marginal product of labor equals the change in ________ from a one-unit increase in the quantity of labor.

This month,the local widget factory produced 100 widgets.The total variable cost of production was $500 and the average total cost of production was $8. a.What is the total cost? b.What is the total fixed cost? c.What is the average fixed cost? d.What is the average variable cost?

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.When does the average product of labor equal the marginal product of labor?

Which of the following is FALSE?

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 6 workers,her average total cost equals

What is the difference between decreasing marginal returns and negative marginal returns?

The figure above shows some of a firm's cost curves. -Curve B is the firm's

Which of the following is an implicit cost? i.wages paid to workers ii.the normal profit iii.the electric bill

The short run is a time period that is

The opportunity cost of a firm using its own capital is

The figure above shows some of a firm's cost curves. -Based on the figure above,curve C is the firm's

-Paulette owns a pizza parlor.Her total cost schedule is in the above table.Her marginal cost of producing the fifth pizza is

The marginal product of labor is

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 2 workers,her average variable cost equals

One of the major reasons for the U-shaped average total cost curve is the fact that

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?

-Ajax Manufacturing has a fixed scale of plant with the levels of total product given in the table for different levels of labor.Complete the table by calculating the average product and marginal product.

A firm's total revenue minus its total opportunity cost is called its

Jake is a corn farmer in Nebraska.He rents his land on a long-term lease for $250,000 a year.He pays his farm hands $128,000 a year.Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost? Briefly explain your answers.

The average fixed cost curve

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 14: Production and Cost

The marginal product of labor equals the change in ________ from a one-unit increase in the quantity of labor.

This month,the local widget factory produced 100 widgets.The total variable cost of production was $500 and the average total cost of production was $8. a.What is the total cost? b.What is the total fixed cost? c.What is the average fixed cost? d.What is the average variable cost?

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.When does the average product of labor equal the marginal product of labor?

Which of the following is FALSE?

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 6 workers,her average total cost equals

What is the difference between decreasing marginal returns and negative marginal returns?

The figure above shows some of a firm's cost curves. -Curve B is the firm's

Which of the following is an implicit cost? i.wages paid to workers ii.the normal profit iii.the electric bill

The short run is a time period that is

The opportunity cost of a firm using its own capital is

The figure above shows some of a firm's cost curves. -Based on the figure above,curve C is the firm's

-Paulette owns a pizza parlor.Her total cost schedule is in the above table.Her marginal cost of producing the fifth pizza is

The marginal product of labor is

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 2 workers,her average variable cost equals

One of the major reasons for the U-shaped average total cost curve is the fact that

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?

-Ajax Manufacturing has a fixed scale of plant with the levels of total product given in the table for different levels of labor.Complete the table by calculating the average product and marginal product.

A firm's total revenue minus its total opportunity cost is called its

Jake is a corn farmer in Nebraska.He rents his land on a long-term lease for $250,000 a year.He pays his farm hands $128,000 a year.Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost? Briefly explain your answers.

The average fixed cost curve

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters