Question 1

A baseball player who is currently batting .350 will increase his batting average on a day that he goes _____ at the plate.

Accepted Answer

A) 1 for 4. 
B) 1 for 3. 
C) 2 for 5. 
D) 2 for 6. 
A) 1 for 4. 
B) 1 for 3. 
C) 2 for 5. 
D) 2 for 6. C

Question 2

​Exhibit
  
-Refer to Exhibit. If the firm planned to produce output level q2, costs with plant size __________ are lower that those with _____________.

Accepted Answer

A) SRATC1; SRATC2 
B) SRATC2; SRATC1 
C) SRATC3; SRATC1 
D) Both a. and c. are correct. 
A) SRATC1; SRATC2 
B) SRATC2; SRATC1 
C) SRATC3; SRATC1 
D) Both a. and c. are correct. A

Question 3

In the table below, which of the following is true?

Accepted Answer

A) the marginal product of the 3rd worker is 50. 
B) the marginal product of the 5th worker is 60. 
C) the marginal product of the 8th worker is -30. 
D) The region of declining total product not illustrated anywhere in the available data. 
A) the marginal product of the 3rd worker is 50. 
B) the marginal product of the 5th worker is 60. 
C) the marginal product of the 8th worker is -30. 
D) The region of declining total product not illustrated anywhere in the available data. C

Question 4

​Exhibit
  
-Refer to Exhibit. At output level 0Q, average total cost equals ____ and marginal cost equals ____.

Accepted Answer

A) QD; QF 
B) QF; QD 
C) QE; DE 
D) QD; QD 
A) QD; QF 
B) QF; QD 
C) QE; DE 
D) QD; QD

Question 5

In the table below, which of the following is true?

Accepted Answer

A) the marginal product of the 3rd worker is 50. 
B) the marginal product of the 5th worker is 60. 
C) the marginal product of the 7th worker is -30. 
D) The region of declining total product not illustrated anywhere in the available data. 
A) the marginal product of the 3rd worker is 50. 
B) the marginal product of the 5th worker is 60. 
C) the marginal product of the 7th worker is -30. 
D) The region of declining total product not illustrated anywhere in the available data.

Question 6

A firm experiencing economic losses could be earning accounting profits:

Accepted Answer

A) If implicit costs are greater than zero. 
B) If implicit costs are equal to zero. 
C) If implicit costs are less than zero. 
D) In none of the above scenarios. 
A) If implicit costs are greater than zero. 
B) If implicit costs are equal to zero. 
C) If implicit costs are less than zero. 
D) In none of the above scenarios.

Question 7

Exhibit
  
-Refer to Exhibit. How much are average fixed costs (in dollars) at 4 units of output?

Accepted Answer

A) 20 
B) 40 
C) 60 
D) 840 
A) 20 
B) 40 
C) 60 
D) 840

Question 8

Exhibit
  
-Refer to Exhibit. Which of the following is false?

Accepted Answer

A) The third unit has the lowest marginal cost. 
B) The sixth unit has the highest marginal cost. 
C) Average variable cost falls for all 6 units of output. 
D) All of the above are true. 
A) The third unit has the lowest marginal cost. 
B) The sixth unit has the highest marginal cost. 
C) Average variable cost falls for all 6 units of output. 
D) All of the above are true.

Question 9

Exhibit
The table below shows how total cost varies with output in a factory producing watches:
​
  
-Refer to Exhibit. If the output equals five watches per week, the average fixed cost and average variable cost of production equal ____ and ____, respectively.

Accepted Answer

A) $18; $20 
B) $20; $18 
C) $38; $30 
D) $30; $38 
A) $18; $20 
B) $20; $18 
C) $38; $30 
D) $30; $38

Question 10

​Exhibit
  
-Refer to Exhibit. At output level 0Q, average fixed cost equals:

Accepted Answer

A) QF. 
B) ED. 
C) QD. 
D) both (a) and (b) 
A) QF. 
B) ED. 
C) QD. 
D) both (a) and (b)

Question 11

When marginal product is rising, marginal costs will:

Accepted Answer

A) rising. 
B) remaining unchanged. 
C) falling. 
D) rising by an equal amount. 
A) rising. 
B) remaining unchanged. 
C) falling. 
D) rising by an equal amount.

Question 12

Exhibit
The table below shows how total cost varies with output in a factory producing watches:
​
  
-Refer to Exhibit. If the output equals four watches per week, then the average total cost of producing a watch equals:

Accepted Answer

A) $144. 
B) $6. 
C) $36. 
D) $11. 
A) $144. 
B) $6. 
C) $36. 
D) $11.

Question 13

If average fixed cost exceeds average variable cost at a particular level of output:

Accepted Answer

A) Profits must be negative. 
B) That fact is meaningless for deciding the quantity of output to produce. 
C) Output levels are probably quite low relative to the designed capacity of the production facility. 
D) Both b and c. are likely true. 
A) Profits must be negative. 
B) That fact is meaningless for deciding the quantity of output to produce. 
C) Output levels are probably quite low relative to the designed capacity of the production facility. 
D) Both b and c. are likely true.

Question 14

Total costs:

Accepted Answer

A) Decrease when quantity produced increases. 
B) Increase when quantity produced increases. 
C) Sometime increase and sometime decrease when quantity produced increases. 
D) Can sometimes be constant over a substantial range of output. 
A) Decrease when quantity produced increases. 
B) Increase when quantity produced increases. 
C) Sometime increase and sometime decrease when quantity produced increases. 
D) Can sometimes be constant over a substantial range of output.

Question 15

​Exhibit
  
-Refer to Exhibit. In the long run the firm can move from

Accepted Answer

A) A to B 
B) A to C 
C) B to A 
D) all of the above 
A) A to B 
B) A to C 
C) B to A 
D) all of the above

Question 16

​Exhibit
  
-Refer to Exhibit. The short-run average total cost curve is the curve labeled:

Accepted Answer

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

Question 17

​Exhibit
   ​
-Refer to Exhibit. At a quantity of five units of output, ____ represents total cost, ____ represents total fixed cost, and ____ represents total variable cost.

Accepted Answer

A) X; Y; Z 
B) Y; Z; X 
C) X; Z; Y 
D) Z; Y; X 
A) X; Y; Z 
B) Y; Z; X 
C) X; Z; Y 
D) Z; Y; X

Question 18

Given the following information about the cost function for Bob's Beautiful Bowling Balls:?Which of the following is false?

Accepted Answer

A) The average fixed cost of producing 5 units is $2. 
B) The total cost of producing 1 unit is $70. 
C) The total cost of producing 5 units is 36. 
D) All of the above are true. 
A) The average fixed cost of producing 5 units is $2. 
B) The total cost of producing 1 unit is $70. 
C) The total cost of producing 5 units is 36. 
D) All of the above are true.

Question 19

Exhibit
  
-Refer to Exhibit. Which of the following is true?

Accepted Answer

A) The marginal product of the first, second and third worker hired is the same. 
B) The marginal product of the sixth worker is higher than for any other worker. 
C) A firm trying to increase its profits would never want to hire a ninth worker given the information provided. 
D) All of the above are true. 
A) The marginal product of the first, second and third worker hired is the same. 
B) The marginal product of the sixth worker is higher than for any other worker. 
C) A firm trying to increase its profits would never want to hire a ninth worker given the information provided. 
D) All of the above are true.

Question 20

If someone you know offers far more to hire you to work for than you could ever have imagine, the opportunity cost of working for yourself would rise.

Accepted Answer

A) True 
 B)False

A baseball player who is currently batting .350 will increase his batting average on a day that he goes _____ at the plate.

Exhibit -Refer to Exhibit. If the firm planned to produce output level q₂, costs with plant size are lower that those with ___.

In the table below, which of the following is true?

Exhibit -Refer to Exhibit. At output level 0Q, average total cost equals and marginal cost equals .

In the table below, which of the following is true?

A firm experiencing economic losses could be earning accounting profits:

Exhibit -Refer to Exhibit. How much are average fixed costs (in dollars) at 4 units of output?

Exhibit -Refer to Exhibit. Which of the following is false?

Exhibit The table below shows how total cost varies with output in a factory producing watches: -Refer to Exhibit. If the output equals five watches per week, the average fixed cost and average variable cost of production equal and , respectively.

Exhibit -Refer to Exhibit. At output level 0Q, average fixed cost equals:

When marginal product is rising, marginal costs will:

Exhibit The table below shows how total cost varies with output in a factory producing watches: -Refer to Exhibit. If the output equals four watches per week, then the average total cost of producing a watch equals:

If average fixed cost exceeds average variable cost at a particular level of output:

Total costs:

Exhibit -Refer to Exhibit. In the long run the firm can move from

Exhibit -Refer to Exhibit. The short-run average total cost curve is the curve labeled:

Exhibit -Refer to Exhibit. At a quantity of five units of output, represents total cost, represents total fixed cost, and represents total variable cost.

Given the following information about the cost function for Bob's Beautiful Bowling Balls:?Which of the following is false?

Exhibit -Refer to Exhibit. Which of the following is true?

If someone you know offers far more to hire you to work for than you could ever have imagine, the opportunity cost of working for yourself would rise.

Market Failure, Market Efficiency and Welfare

Elasticities

Market in Motion and Price Controls

Demand Supply and Market Equilibrium

Economics Eight Powerful Ideas and the Role and Method of Economics

International Finance

International Trade, Income Poverty and Health Care

The Markets for Labor Capital and Land

Oligopoly and Strategic Behavior

Monopolistic Competition, Product Differentiation, Monopoly and Antitrust

Firms in Perfectly Competitive Markets

Consumer Choice Theory

Filters

Exam 12: The Firm Production and Costs

A baseball player who is currently batting .350 will increase his batting average on a day that he goes _____ at the plate.

​Exhibit -Refer to Exhibit. If the firm planned to produce output level q2, costs with plant size __________ are lower that those with _____________.

In the table below, which of the following is true?

​Exhibit -Refer to Exhibit. At output level 0Q, average total cost equals ____ and marginal cost equals ____.

In the table below, which of the following is true?

A firm experiencing economic losses could be earning accounting profits:

Exhibit -Refer to Exhibit. How much are average fixed costs (in dollars) at 4 units of output?

Exhibit -Refer to Exhibit. Which of the following is false?

Exhibit The table below shows how total cost varies with output in a factory producing watches: ​ -Refer to Exhibit. If the output equals five watches per week, the average fixed cost and average variable cost of production equal ____ and ____, respectively.

​Exhibit -Refer to Exhibit. At output level 0Q, average fixed cost equals:

When marginal product is rising, marginal costs will:

Exhibit The table below shows how total cost varies with output in a factory producing watches: ​ -Refer to Exhibit. If the output equals four watches per week, then the average total cost of producing a watch equals:

If average fixed cost exceeds average variable cost at a particular level of output:

Total costs:

​Exhibit -Refer to Exhibit. In the long run the firm can move from

​Exhibit -Refer to Exhibit. The short-run average total cost curve is the curve labeled:

​Exhibit ​ -Refer to Exhibit. At a quantity of five units of output, ____ represents total cost, ____ represents total fixed cost, and ____ represents total variable cost.

Given the following information about the cost function for Bob's Beautiful Bowling Balls:?Which of the following is false?

Exhibit -Refer to Exhibit. Which of the following is true?

If someone you know offers far more to hire you to work for than you could ever have imagine, the opportunity cost of working for yourself would rise.

Market Failure, Market Efficiency and Welfare

Elasticities

Market in Motion and Price Controls

Demand Supply and Market Equilibrium

Economics Eight Powerful Ideas and the Role and Method of Economics

International Finance

International Trade, Income Poverty and Health Care

The Markets for Labor Capital and Land

Oligopoly and Strategic Behavior

Monopolistic Competition, Product Differentiation, Monopoly and Antitrust

Firms in Perfectly Competitive Markets

Consumer Choice Theory

Filters

Exhibit -Refer to Exhibit. If the firm planned to produce output level q₂, costs with plant size are lower that those with ___.

Exhibit -Refer to Exhibit. At output level 0Q, average total cost equals and marginal cost equals .

Exhibit The table below shows how total cost varies with output in a factory producing watches: -Refer to Exhibit. If the output equals five watches per week, the average fixed cost and average variable cost of production equal and , respectively.

Exhibit -Refer to Exhibit. At output level 0Q, average fixed cost equals:

Exhibit The table below shows how total cost varies with output in a factory producing watches: -Refer to Exhibit. If the output equals four watches per week, then the average total cost of producing a watch equals:

Exhibit -Refer to Exhibit. In the long run the firm can move from

Exhibit -Refer to Exhibit. The short-run average total cost curve is the curve labeled:

Exhibit -Refer to Exhibit. At a quantity of five units of output, represents total cost, represents total fixed cost, and represents total variable cost.