Question 1

The production function shows

Accepted Answer

A) the total cost of producing a given quantity of output. 
B) the maximum output that can be produced from a set of inputs. 
C) the technology used to produce output. 
D) the incremental output gained by improving the production process. 
A) the total cost of producing a given quantity of output. 
B) the maximum output that can be produced from a set of inputs. 
C) the technology used to produce output. 
D) the incremental output gained by improving the production process.

Question 2

As output increases,

Accepted Answer

A) average variable cost becomes smaller and smaller. 
B) the difference between average total cost and average variable cost decreases. 
C) marginal cost increases continuously. 
D) the difference between average total cost and average variable cost becomes greater and greater. 
A) average variable cost becomes smaller and smaller. 
B) the difference between average total cost and average variable cost decreases. 
C) marginal cost increases continuously. 
D) the difference between average total cost and average variable cost becomes greater and greater.

Question 3

Which of the following is an example of a long-run adjustment?

Accepted Answer

A) Your university offers Saturday morning classes next fall. 
B) Ford Motor Company lays off 2,000 assembly line workers. 
C) A soybean farmer turns on the irrigation system after a month long dry spell. 
D) Walmart builds another Supercenter. 
A) Your university offers Saturday morning classes next fall. 
B) Ford Motor Company lays off 2,000 assembly line workers. 
C) A soybean farmer turns on the irrigation system after a month long dry spell. 
D) Walmart builds another Supercenter.

Question 4

Which of the following explains why the marginal cost curve has a U shape?

Accepted Answer

A) Initially, the marginal product of labor falls, then rises. 
B) Initially, the average product of labor rises, then falls. 
C) Initially, the marginal product of labor rises, then falls. 
D) Initially, the average cost of production rises, then falls. 
A) Initially, the marginal product of labor falls, then rises. 
B) Initially, the average product of labor rises, then falls. 
C) Initially, the marginal product of labor rises, then falls. 
D) Initially, the average cost of production rises, then falls.

Question 5

Red Stone Creamery currently hires 5 workers.When it added a 6th worker, its output actually fell.Which of the following statements is true?

Accepted Answer

A) The marginal product of the sixth worker must be negative. 
B) The average product of the sixth worker is negative. 
C) The sixth worker is not as skilled as the fifth worker. 
D) The total product becomes negative. 
A) The marginal product of the sixth worker must be negative. 
B) The average product of the sixth worker is negative. 
C) The sixth worker is not as skilled as the fifth worker. 
D) The total product becomes negative.

Question 6

Table 11-1
   
Table 11-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May.
-Refer to Table 11-1.Diminishing marginal returns sets in when the ________ worker is hired.

Accepted Answer

A) 2nd 
B) 3rd 
C) 4th 
D) None of the above; the production function displays increasing marginal returns. 
A) 2nd 
B) 3rd 
C) 4th 
D) None of the above; the production function displays increasing marginal returns.

Question 7

Figure 11-1
  
-Refer to Figure 11-1.The marginal product of the 7th worker is

Accepted Answer

A) 66. 
B) 9.43. 
C) 2. 
D) -2. 
A) 66. 
B) 9.43. 
C) 2. 
D) -2.

The production function shows

As output increases,

Which of the following is an example of a long-run adjustment?

Which of the following explains why the marginal cost curve has a U shape?

Red Stone Creamery currently hires 5 workers.When it added a 6th worker, its output actually fell.Which of the following statements is true?

Table 11-1 Table 11-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. -Refer to Table 11-1.Diminishing marginal returns sets in when the ________ worker is hired.

Figure 11-1 -Refer to Figure 11-1.The marginal product of the 7th worker is

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Exam 11: Technology, Production, and Costs

The production function shows

As output increases,

Which of the following is an example of a long-run adjustment?

Which of the following explains why the marginal cost curve has a U shape?

Red Stone Creamery currently hires 5 workers.When it added a 6th worker, its output actually fell.Which of the following statements is true?

Table 11-1 Table 11-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. -Refer to Table 11-1.Diminishing marginal returns sets in when the ________ worker is hired.

Figure 11-1 -Refer to Figure 11-1.The marginal product of the 7th worker is

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters