Table 9.3 $\begin{array}{|c|c|c|c|c|} \hline \begin{array}{c} \text { Quantity of } \\ \text { Lanterns } \end{array} & \begin{array}{c} \text { Fixed Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Variable Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Total Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Average Total Cost } \\ \text { (dollars) } \end{array} \\ \hline 75 & 200 & 170 & 370 & 4.93 \\ \hline 80 & 200 & 230 & 430 & 5.36 \\ \hline 90 & 200 & & & 7.67 \\ \hline 100 & 200 & 810 & & \\ \hline 115 & 200 & & & 11.8 \\ \hline 117 & 200 & 1264 & 1464 &12.5 \\ \hline 120 & 200 & 1480 & & \\ \hline \end{array}$ Table 9.3 shows cost data for Lotus Lanterns, a producer of whimsical night lights. -Refer to Table 9.3.What is the average total cost of production when the firm produces 120 lanterns?

A) $1,680 B) $72 C) $14 D) $12.3 A) $1,680 B) $72 C) $14 D) $12.3

Exam 9: Technology, Production, and Costs

Figure 9.7 -Refer to Figure 9.7.The lines shown in the diagram are isocost lines.Which of the following shows an increase in the price of labour while the price of capital remains unchanged?

(Multiple Choice)

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Question 61

Table 9.1 Table 9.1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May 2011. -Refer to Table 9.1.What is the marginal product of the 4th worker?

(Multiple Choice)

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Question 62

The slope of an isoquant measures

(Multiple Choice)

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Question 63

What are economies of scale? What are diseconomies of scale?

(Essay)

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Question 64

Figure 9.6 -Refer to Figure 9.6.The movement from isoquant T to isoquant U depicts

(Multiple Choice)

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Question 65

Which of the following is the best example of a short run adjustment?

(Multiple Choice)

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Question 66

Average variable cost can be calculated using any of the formulas below except

(Multiple Choice)

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Question 67

An expansion path shows

(Multiple Choice)

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Question 68

Explain whether each of the following is a fixed cost or a variable cost for Damian Dandridge's tattoo parlor. a.The payment he makes to buy tattoo ink. b.The wages he pays his employees. c.The $500-per-month payment he makes to advertise his shop on highway billboards. d.The lease payment he makes to the landlord who owns the building where his shop is located. e.The payment he makes on his liability insurance policy.

(Essay)

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Question 69

Which of the following is an implicit cost of production?

(Multiple Choice)

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Question 70

Figure 9.7 -Refer to Figure 9.7.The lines shown in the diagram are isocost lines.If the price of labour is $50 per unit, then along the isocost AF, the total cost

(Multiple Choice)

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Question 71

Suppose the total cost of producing 40,000 flash drives is $120,000, and the fixed cost is $30,000. a.What is the variable cost? b.When output is 40,000, what are the average variable cost and the average fixed cost? c.Assuming the cost curves have the usual shape, is the dollar difference between the average total cost and the average variable cost greater when the output is 40,000 flash drives or when the output is 60,000 flash drives? Explain.

(Essay)

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Question 72

Table 9.3 Quantity of Lanterns Fixed Cost (dollars) Variable Cost (dollars) Total Cost (dollars) Average Total Cost (dollars) 75 200 170 370 4.93 80 200 230 430 5.36 90 200 7.67 100 200 810 115 200 11.8 117 200 1264 1464 12.5 120 200 1480 Table 9.3 shows cost data for Lotus Lanterns, a producer of whimsical night lights. -Refer to Table 9.3.What is the average total cost of production when the firm produces 120 lanterns?

(Multiple Choice)

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Question 73

Which of the following is not a source of technological advancement for a producer?

(Multiple Choice)

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Question 74

Implicit costs can be defined as

(Multiple Choice)

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Question 75

The ABC Company manufactures routers that are used to provide high-speed Internet service.ABC sells an average of 1,000 routers each month, but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month.Therefore,

(Multiple Choice)

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Question 76

Which of the following is a reason why a firm would experience diseconomies of scale?

(Multiple Choice)

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Question 77

The law of diminishing marginal returns

(Multiple Choice)

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Question 78

Figure 9.2 -Refer to Figure 9.2.Short run output is maximized at

(Multiple Choice)

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Question 79

What is the difference between "diminishing marginal returns" and "diseconomies of scale"?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 169

Figure 9.7 -Refer to Figure 9.7.The lines shown in the diagram are isocost lines.Which of the following shows an increase in the price of labour while the price of capital remains unchanged?

Table 9.1 Table 9.1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May 2011. -Refer to Table 9.1.What is the marginal product of the 4th worker?

The slope of an isoquant measures

What are economies of scale? What are diseconomies of scale?

Figure 9.6 -Refer to Figure 9.6.The movement from isoquant T to isoquant U depicts

Which of the following is the best example of a short run adjustment?

Average variable cost can be calculated using any of the formulas below except

An expansion path shows

Which of the following is an implicit cost of production?

Figure 9.7 -Refer to Figure 9.7.The lines shown in the diagram are isocost lines.If the price of labour is $50 per unit, then along the isocost AF, the total cost

Which of the following is not a source of technological advancement for a producer?

Implicit costs can be defined as

The ABC Company manufactures routers that are used to provide high-speed Internet service.ABC sells an average of 1,000 routers each month, but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month.Therefore,

Which of the following is a reason why a firm would experience diseconomies of scale?

The law of diminishing marginal returns

Figure 9.2 -Refer to Figure 9.2.Short run output is maximized at

What is the difference between "diminishing marginal returns" and "diseconomies of scale"?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

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