Question 1

If another worker is hired with a marginal product greater than the previously hired worker,which of the following will be true?

Accepted Answer

A)  total costs will decrease 
B)  fixed costs will decrease 
C)  marginal cost will increase 
D)  marginal cost will decrease 
E)  average fixed costs will increase 
A)  total costs will decrease 
B)  fixed costs will decrease 
C)  marginal cost will increase 
D)  marginal cost will decrease 
E)  average fixed costs will increase

Question 2

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.When the 4th worker is hired,the ________ product of labor equals ________ lawns mowed.

Accepted Answer

A)  average; 60 
B)  average; 3.75 
C)  marginal; 3.75 
D)  marginal; 0 
E)  marginal; 15 
A)  average; 60 
B)  average; 3.75 
C)  marginal; 3.75 
D)  marginal; 0 
E)  marginal; 15

Question 3

Which of the following is correct?

Accepted Answer

A)  The short run for a firm can be longer than the long run for the same firm. 
B)  The short run is the same for all firms. 
C)  The long run is the time frame in which the quantities of all resources can be varied. 
D)  The long run is the time frame in which all resources are fixed. 
E)  The long run does not exist for some firms. 
A)  The short run for a firm can be longer than the long run for the same firm. 
B)  The short run is the same for all firms. 
C)  The long run is the time frame in which the quantities of all resources can be varied. 
D)  The long run is the time frame in which all resources are fixed. 
E)  The long run does not exist for some firms.

Question 4

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

Accepted Answer

A)  first worker. 
B)  second worker. 
C)  third worker. 
D)  fourth worker. 
E)  fifth worker. 
A)  first worker. 
B)  second worker. 
C)  third worker. 
D)  fourth worker. 
E)  fifth worker.

Question 5

When an economist uses the term "cost" referring to a firm,the economist refers to the

Accepted Answer

A)  price of the good to the consumer. 
B)  explicit cost of producing a good or service but not the implicit cost of producing a good or service. 
C)  implicit cost of producing a good or service but not the explicit cost of producing a good or service.. 
D)  opportunity cost of producing a good or service, which includes both implicit and explicit cost. 
E)  cost that can be actually verified and measured. 
A)  price of the good to the consumer. 
B)  explicit cost of producing a good or service but not the implicit cost of producing a good or service. 
C)  implicit cost of producing a good or service but not the explicit cost of producing a good or service.. 
D)  opportunity cost of producing a good or service, which includes both implicit and explicit cost. 
E)  cost that can be actually verified and measured.

Question 6

If we know the amount of total cost,average total cost,average variable cost,and marginal cost for each level of output,how can we find the level of output where the marginal product is the greatest?

Accepted Answer

A)  It is the output for which the marginal cost equals average variable cost. 
B)  It is the output for which the total cost is maximized. 
C)  It is the output for which the marginal cost is minimized. 
D)  It is the output for which the marginal cost equals average total cost. 
E)  There is no way to find where marginal product is the greatest knowing only cost data. 
A)  It is the output for which the marginal cost equals average variable cost. 
B)  It is the output for which the total cost is maximized. 
C)  It is the output for which the marginal cost is minimized. 
D)  It is the output for which the marginal cost equals average total cost. 
E)  There is no way to find where marginal product is the greatest knowing only cost data.

Question 7

The figure above shows a firm's average total cost and marginal cost curves.
-Based on the figure above,the firm's marginal product curve slopes upward at levels of output between ________ and the firm's average product curve slopes upward at levels of output between ________.

Accepted Answer

A)  4.0 and 7.0; 4.0 and 7.0 
B)  0 and 7.0; 4.0 and 7.0 
C)  4.0 and 7.0; 0 and 4.0 
D)  0 and 4.0; 0 and 7.0 
E)  More information is needed to answer the question. 
A)  4.0 and 7.0; 4.0 and 7.0 
B)  0 and 7.0; 4.0 and 7.0 
C)  4.0 and 7.0; 0 and 4.0 
D)  0 and 4.0; 0 and 7.0 
E)  More information is needed to answer the question.

Question 8

Costs paid in money to hire a resource is

Accepted Answer

A)  normal profit. 
B)  an implicit cost. 
C)  an explicit cost. 
D)  an alternative-use cost. 
E)  economic profit. 
A)  normal profit. 
B)  an implicit cost. 
C)  an explicit cost. 
D)  an alternative-use cost. 
E)  economic profit.

Question 9

The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases,the

Accepted Answer

A)  average total cost decreases. 
B)  average total cost increases. 
C)  marginal cost increases. 
D)  marginal cost decreases. 
E)  average variable cost is constant and the average fixed cost decreases. 
A)  average total cost decreases. 
B)  average total cost increases. 
C)  marginal cost increases. 
D)  marginal cost decreases. 
E)  average variable cost is constant and the average fixed cost decreases.

Question 10

A firm's rent is a fixed cost.If the rent increases,then in the figure above ________ upward.

Accepted Answer

A)  only curve A shifts 
B)  only curve B shifts 
C)  only curve C shifts 
D)  both curves A and C shift 
E)  both curves B and C shift 
A)  only curve A shifts 
B)  only curve B shifts 
C)  only curve C shifts 
D)  both curves A and C shift 
E)  both curves B and C shift

Question 11

-The above table shows the total product schedule for Hair Today,a hair styling salon.Based on the table,the marginal product for Hair Today

Accepted Answer

A)  never reaches a maximum. 
B)  decreases after the 1st worker. 
C)  reaches a maximum with the 4th worker. 
D)  reaches a maximum with the 3rd worker. 
E)  reaches a maximum with the 5th worker. 
A)  never reaches a maximum. 
B)  decreases after the 1st worker. 
C)  reaches a maximum with the 4th worker. 
D)  reaches a maximum with the 3rd worker. 
E)  reaches a maximum with the 5th worker.

Question 12

Average variable cost equals

Accepted Answer

A)  fixed cost divided by output. 
B)  total variable cost divided by output. 
C)  marginal cost divided by output. 
D)  marginal cost plus fixed cost. 
E)  marginal cost multiplied by output. 
A)  fixed cost divided by output. 
B)  total variable cost divided by output. 
C)  marginal cost divided by output. 
D)  marginal cost plus fixed cost. 
E)  marginal cost multiplied by output.

Question 13

The short run is

Accepted Answer

A)  less than one year. 
B)  the time frame in which all resources are fixed. 
C)  the time frame in which some resources are fixed. 
D)  the time frame in which output is fixed. 
E)  a time frame short enough so that some costs are explicit costs. 
A)  less than one year. 
B)  the time frame in which all resources are fixed. 
C)  the time frame in which some resources are fixed. 
D)  the time frame in which output is fixed. 
E)  a time frame short enough so that some costs are explicit costs.

Question 14

A cost paid in money is

Accepted Answer

A)  not an opportunity cost. 
B)  an implicit cost and an opportunity cost. 
C)  an explicit cost and an opportunity cost. 
D)  not an accounting cost. 
E)  an explicit cost but not an opportunity cost. 
A)  not an opportunity cost. 
B)  an implicit cost and an opportunity cost. 
C)  an explicit cost and an opportunity cost. 
D)  not an accounting cost. 
E)  an explicit cost but not an opportunity cost.

Question 15

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and,as a result,her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.

Accepted Answer

A)  10 
B)  20 
C)  690 
D)  700 
E)  None of the above answers is correct. 
A)  10 
B)  20 
C)  690 
D)  700 
E)  None of the above answers is correct.

Question 16

"If the marginal product of labor curve slopes downward,then the average product of labor curve necessarily must slope downward." Explain whether the previous statement is correct or incorrect?

Accepted Answer

The statement is incorrect.The relations

Question 17

-The above figure represents the average total cost curves of a wheat farmer.
a.Which average total cost curve has the lowest average total cost of producing 30,000 bushels of wheat?
b.Over what range of output is the farmer experiencing economies of scale?
c.Over what range of output is the farmer experiencing diseconomies of scale?
d.Which average total cost curve has the lowest possible average cost of production?
e.Which average total cost curve represents the largest plant?

Accepted Answer

a.ATC₃ has the lowest average total cost

Question 18

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.Decreasing marginal returns start to occur after the ________ worker is hired.

Accepted Answer

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

Question 19

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The average variable cost of producing 80 units equals ________ per unit.

Accepted Answer

A)  $0.75 
B)  $1.00 
C)  $1.75 
D)  $20 
E)  $0.25 
A)  $0.75 
B)  $1.00 
C)  $1.75 
D)  $20 
E)  $0.25

Question 20

Which of the following is true in the long run?

Accepted Answer

A)  Total cost equals fixed cost. 
B)  Total cost is constant. 
C)  All costs are variable. 
D)  Marginal cost equals zero. 
E)  None of the above are true in the long run. 
A)  Total cost equals fixed cost. 
B)  Total cost is constant. 
C)  All costs are variable. 
D)  Marginal cost equals zero. 
E)  None of the above are true in the long run.

If another worker is hired with a marginal product greater than the previously hired worker,which of the following will be true?

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.When the 4th worker is hired,the product of labor equals lawns mowed.

Which of the following is correct?

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

When an economist uses the term "cost" referring to a firm,the economist refers to the

If we know the amount of total cost,average total cost,average variable cost,and marginal cost for each level of output,how can we find the level of output where the marginal product is the greatest?

The figure above shows a firm's average total cost and marginal cost curves. -Based on the figure above,the firm's marginal product curve slopes upward at levels of output between and the firm's average product curve slopes upward at levels of output between .

Costs paid in money to hire a resource is

The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases,the

A firm's rent is a fixed cost.If the rent increases,then in the figure above ________ upward.

-The above table shows the total product schedule for Hair Today,a hair styling salon.Based on the table,the marginal product for Hair Today

Average variable cost equals

The short run is

A cost paid in money is

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and,as a result,her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.

"If the marginal product of labor curve slopes downward,then the average product of labor curve necessarily must slope downward." Explain whether the previous statement is correct or incorrect?

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.Decreasing marginal returns start to occur after the ________ worker is hired.

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The average variable cost of producing 80 units equals ________ per unit.

Which of the following is true in the long run?

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

If another worker is hired with a marginal product greater than the previously hired worker,which of the following will be true?

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.When the 4th worker is hired,the ________ product of labor equals ________ lawns mowed.

Which of the following is correct?

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

When an economist uses the term "cost" referring to a firm,the economist refers to the

If we know the amount of total cost,average total cost,average variable cost,and marginal cost for each level of output,how can we find the level of output where the marginal product is the greatest?

The figure above shows a firm's average total cost and marginal cost curves. -Based on the figure above,the firm's marginal product curve slopes upward at levels of output between ________ and the firm's average product curve slopes upward at levels of output between ________.

Costs paid in money to hire a resource is

The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases,the

A firm's rent is a fixed cost.If the rent increases,then in the figure above ________ upward.

-The above table shows the total product schedule for Hair Today,a hair styling salon.Based on the table,the marginal product for Hair Today

Average variable cost equals

The short run is

A cost paid in money is

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and,as a result,her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.

"If the marginal product of labor curve slopes downward,then the average product of labor curve necessarily must slope downward." Explain whether the previous statement is correct or incorrect?

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.Decreasing marginal returns start to occur after the ________ worker is hired.

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The average variable cost of producing 80 units equals ________ per unit.

Which of the following is true in the long run?

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

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.When the 4th worker is hired,the product of labor equals lawns mowed.

The figure above shows a firm's average total cost and marginal cost curves. -Based on the figure above,the firm's marginal product curve slopes upward at levels of output between and the firm's average product curve slopes upward at levels of output between .