Question 1

Which of the following statements is false?

Accepted Answer

A) Marginal cost will equal average total cost when marginal cost is at its lowest point. 
B) When marginal cost is less than average total cost, average total cost will fall. 
C) When marginal cost is greater than average total cost, average total cost will rise. 
D) Marginal cost will equal average total cost when average total cost is at its lowest point. 
A) Marginal cost will equal average total cost when marginal cost is at its lowest point. 
B) When marginal cost is less than average total cost, average total cost will fall. 
C) When marginal cost is greater than average total cost, average total cost will rise. 
D) Marginal cost will equal average total cost when average total cost is at its lowest point.

Question 2

What is the marginal product of labor and what is the average product of labor.

Accepted Answer

The marginal product of labor is the add

Question 3

Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon, Goldilocks.She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest)and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year.In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 in expenses on equipment and hairdressing material.Based on this information, what is the amount of her implicit costs?

Accepted Answer

A) $80,000 
B) $70,000 
C) $42,000 
D) $41,500 
A) $80,000 
B) $70,000 
C) $42,000 
D) $41,500

Question 4

Figure 11-7
   
Figure 11-7 shows the cost structure for a firm.
-Refer to Figure 11-7.If output is 100 units what is the fixed cost of production?

Accepted Answer

A) $8 
B) $800 
C) $1,000 
D) This cannot be determined from the diagram. 
A) $8 
B) $800 
C) $1,000 
D) This cannot be determined from the diagram.

Question 5

The marginal product of labor is calculated using the formula

Accepted Answer

A) L/Q. 
B) ΔL/ΔQ. 
C) ΔQ/ΔL. 
D) Q/L. 
A) L/Q. 
B) ΔL/ΔQ. 
C) ΔQ/ΔL. 
D) Q/L.

Question 6

In the short run, if marginal product is at its maximum, then

Accepted Answer

A) average cost is at its minimum. 
B) average variable cost is at its minimum. 
C) marginal cost is at its minimum. 
D) total cost is at its maximum. 
A) average cost is at its minimum. 
B) average variable cost is at its minimum. 
C) marginal cost is at its minimum. 
D) total cost is at its maximum.

Question 7

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

Accepted Answer

A) better trained workers 
B) more efficient physical capital 
C) higher skill level of managers 
D) outsourcing some aspect of production 
A) better trained workers 
B) more efficient physical capital 
C) higher skill level of managers 
D) outsourcing some aspect of production

Question 8

The average total cost of production

Accepted Answer

A) is the extra cost required to produce one more unit. 
B) equals the explicit cost of production. 
C) equals total cost of production divided by the level of output. 
D) equals total cost of production multiplied by the level of output. 
A) is the extra cost required to produce one more unit. 
B) equals the explicit cost of production. 
C) equals total cost of production divided by the level of output. 
D) equals total cost of production multiplied by the level of output.

Which of the following statements is false?

What is the marginal product of labor and what is the average product of labor.

Figure 11-7 Figure 11-7 shows the cost structure for a firm. -Refer to Figure 11-7.If output is 100 units what is the fixed cost of production?

The marginal product of labor is calculated using the formula

In the short run, if marginal product is at its maximum, then

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

The average total cost of production

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 More Realistic Setting

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

Which of the following statements is false?

What is the marginal product of labor and what is the average product of labor.

Figure 11-7 Figure 11-7 shows the cost structure for a firm. -Refer to Figure 11-7.If output is 100 units what is the fixed cost of production?

The marginal product of labor is calculated using the formula

In the short run, if marginal product is at its maximum, then

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

The average total cost of production

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 More Realistic Setting

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