Question 1

Which of the following provides the best explanation for diseconomies of scale?

Accepted Answer

A) the firm is too small to take advantage of specialization. 
B) large management structures may be bureaucratic and inefficient. 
C) if there are too many employees, the work place becomes crowded and people become less productive. 
D) average fixed costs are rising. 
A) the firm is too small to take advantage of specialization. 
B) large management structures may be bureaucratic and inefficient. 
C) if there are too many employees, the work place becomes crowded and people become less productive. 
D) average fixed costs are rising.

Question 2

In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cost must be

Accepted Answer

A) $25. 
B) $2,500. 
C) $5,000. 
D) $7,500. 
A) $25. 
B) $2,500. 
C) $5,000. 
D) $7,500.

Question 3

Automobile companies typically make some of the parts for cars (for example, the body and engine) but not others (for example, the tires). Under what conditions would you expect an automobile manufacturer to be most likely to buy inputs from other companies?

Accepted Answer

A) when the specifications (size, style, etc.) of the inputs change frequently 
B) when the inputs being produced have little value 
C) when market prices have not been established for the inputs 
D) when it is relatively easy to measure the quantity and quality of the input 
A) when the specifications (size, style, etc.) of the inputs change frequently 
B) when the inputs being produced have little value 
C) when market prices have not been established for the inputs 
D) when it is relatively easy to measure the quantity and quality of the input

Which of the following provides the best explanation for diseconomies of scale?

In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cost must be

Automobile companies typically make some of the parts for cars (for example, the body and engine) but not others (for example, the tires). Under what conditions would you expect an automobile manufacturer to be most likely to buy inputs from other companies?

The Economic Approach

A: Some Tools of the Economist

B: Some Tools of the Economist

A: Supply, Demand, and the Market Process

B: Supply, Demand, and the Market Process

A: Supply and Demand: Applications and Extensions

B: Supply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Consumer Choice and Elasticity

B: Costs and the Supply of Goods

A: Price Takers and the Competitive Process

B: Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

A: Price-Searcher Markets With High Entry Barriers

B: Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Appendix: Government Spending and Taxation

Appendix: the Economics of Social Security

Appendix: the Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Appendix: Great Debates in Economics: Keynes Versus Hayek

Appendix: the Crisis of 2008: Causes and Lessons for the Future

Appendix: Lessons From the Great Depression

Appendix: the Economics of Healthcare

Appendix:education: Problems and Performance

Appendix: Earnings Differences Between Men and Women

Appendix: the Question of Resource Exhaustion

Appendix: Do Labor Unions Increase the Wages of Workers

Appendix: Difficult Environmental Cases and the Role of Government

Filters

Exam 8: A: Costs and the Supply of Goods

Which of the following provides the best explanation for diseconomies of scale?

In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cost must be

Automobile companies typically make some of the parts for cars (for example, the body and engine) but not others (for example, the tires). Under what conditions would you expect an automobile manufacturer to be most likely to buy inputs from other companies?

The Economic Approach

A: Some Tools of the Economist

B: Some Tools of the Economist

A: Supply, Demand, and the Market Process

B: Supply, Demand, and the Market Process

A: Supply and Demand: Applications and Extensions

B: Supply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Consumer Choice and Elasticity

B: Costs and the Supply of Goods

A: Price Takers and the Competitive Process

B: Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

A: Price-Searcher Markets With High Entry Barriers

B: Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Appendix: Government Spending and Taxation

Appendix: the Economics of Social Security

Appendix: the Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Appendix: Great Debates in Economics: Keynes Versus Hayek

Appendix: the Crisis of 2008: Causes and Lessons for the Future

Appendix: Lessons From the Great Depression

Appendix: the Economics of Healthcare

Appendix:education: Problems and Performance

Appendix: Earnings Differences Between Men and Women

Appendix: the Question of Resource Exhaustion

Appendix: Do Labor Unions Increase the Wages of Workers

Appendix: Difficult Environmental Cases and the Role of Government

Filters