Question 1

Variable inputs are those whose

Accepted Answer

A) quantity changes as the level of output changes 
B) costs are irreversible 
C) quantity remains constant regardless of the level of output 
D) costs are considered sunk costs 
E) price is continuously changing 
A) quantity changes as the level of output changes 
B) costs are irreversible 
C) quantity remains constant regardless of the level of output 
D) costs are considered sunk costs 
E) price is continuously changing

Question 2

If a firm is experiencing diminishing marginal returns to labor,then

Accepted Answer

A) total output must be decreasing 
B) total output rises more slowly as additional workers are added 
C) the firm must decrease the amount of labor it hires 
D) total output per worker must be rising 
E) the firm must be operating in the long run 
A) total output must be decreasing 
B) total output rises more slowly as additional workers are added 
C) the firm must decrease the amount of labor it hires 
D) total output per worker must be rising 
E) the firm must be operating in the long run

Question 3

Assume that an industry requires a very specialized technology that involves high start-up costs for new firms no matter what level of output they produce.In the long run,at low levels of output,these firms will tend to exhibit

Accepted Answer

A) diminishing marginal returns 
B) increasing marginal returns 
C) diseconomies of scale 
D) constant returns to scale 
E) economies of scale 
A) diminishing marginal returns 
B) increasing marginal returns 
C) diseconomies of scale 
D) constant returns to scale 
E) economies of scale

Question 4

In the long run,

Accepted Answer

A) at least one of the firm's inputs is fixed 
B) customer tastes and preferences are fixed 
C) the firm may vary all inputs 
D) sunk costs become variable costs 
E) government intervention is inevitable 
A) at least one of the firm's inputs is fixed 
B) customer tastes and preferences are fixed 
C) the firm may vary all inputs 
D) sunk costs become variable costs 
E) government intervention is inevitable

Question 5

-Figure 7-7 shows a firm's total variable cost for different daily output levels.In addition,the firm has total fixed cost of $50 per day.If output increases from 20 to 30 units,average total cost rises from

Accepted Answer

A) $17.50 to $19.17,and marginal cost is $225.00 
B) $400 to $625,and marginal cost is $225.00 
C) $15.00 to $22.50,and marginal cost is $22.50 
D) $20.00 to $20.83,and marginal cost is $22.50 
E) $20.00 to $20.83,and marginal cost is $225.00 
A) $17.50 to $19.17,and marginal cost is $225.00 
B) $400 to $625,and marginal cost is $225.00 
C) $15.00 to $22.50,and marginal cost is $22.50 
D) $20.00 to $20.83,and marginal cost is $22.50 
E) $20.00 to $20.83,and marginal cost is $225.00

Question 6

Which of the following,necessarily,equals zero when the firm's short-run output level is zero?

Accepted Answer

A) sunk costs 
B) fixed costs 
C) implicit costs 
D) variable costs 
E) opportunity costs 
A) sunk costs 
B) fixed costs 
C) implicit costs 
D) variable costs 
E) opportunity costs

Question 7

If there are diminishing marginal returns to labor,

Accepted Answer

A) output diminishes as additional workers are added 
B) the management team grows as more workers are hired 
C) the rise in output becomes smaller and smaller with each successive worker hired 
D) the management team shrinks as successive workers are added 
E) macroeconomic business cycles are generated by microeconomic production functions 
A) output diminishes as additional workers are added 
B) the management team grows as more workers are hired 
C) the rise in output becomes smaller and smaller with each successive worker hired 
D) the management team shrinks as successive workers are added 
E) macroeconomic business cycles are generated by microeconomic production functions

Variable inputs are those whose

If a firm is experiencing diminishing marginal returns to labor,then

Assume that an industry requires a very specialized technology that involves high start-up costs for new firms no matter what level of output they produce.In the long run,at low levels of output,these firms will tend to exhibit

In the long run,

-Figure 7-7 shows a firm's total variable cost for different daily output levels.In addition,the firm has total fixed cost of $50 per day.If output increases from 20 to 30 units,average total cost rises from

Which of the following,necessarily,equals zero when the firm's short-run output level is zero?

If there are diminishing marginal returns to labor,

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 7: Production and Cost

Variable inputs are those whose

If a firm is experiencing diminishing marginal returns to labor,then

Assume that an industry requires a very specialized technology that involves high start-up costs for new firms no matter what level of output they produce.In the long run,at low levels of output,these firms will tend to exhibit

In the long run,

-Figure 7-7 shows a firm's total variable cost for different daily output levels.In addition,the firm has total fixed cost of $50 per day.If output increases from 20 to 30 units,average total cost rises from

Which of the following,necessarily,equals zero when the firm's short-run output level is zero?

If there are diminishing marginal returns to labor,

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters