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.

A) change in average cost when an additional unit of output is produced. B) the additional output when total cost is increased by one dollar. C) additional cost of producing an additional unit of output. D) change in the price of inputs if a firm buys more inputs to produce an additional unit of output. A) change in average cost when an additional unit of output is produced. B) the additional output when total cost is increased by one dollar. C) additional cost of producing an additional unit of output. D) change in the price of inputs if a firm buys more inputs to produce an additional unit of output.

Exam 11: Technology, Production, and Costs

Sally quit her job as an auto mechanic earning $50,000 per year to start her own business.To save money she operates her business out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year.She also invested her $20,000 savings (which earned a market interest rate of 5% per year)in her business.You are given the following information about the first year of her operations. Total revenue $120,000 Cost of labor 40,000 Cost of materials 15,000 Equipment rental 5,000 a.Calculate her economic costs. b.Calculate her accounting costs. c.Calculate her implicit costs. d.Sally tells you that she would really like to move to a location closer to town but she decided against it because "right now I don't pay any rent and it will cost me $10,000 a year to rent near town." Do you agree with her reasoning?

(Essay)

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Question 21

Diseconomies of scale occur when

(Multiple Choice)

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Question 22

A curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output is called

(Multiple Choice)

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Question 23

The marginal cost curve is U-shaped because of the law of increasing opportunity costs.

(True/False)

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Question 24

Which of the following statements is true?

(Multiple Choice)

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Question 25

What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business.

(Essay)

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Question 26

A firm increased its production and sales because the firm's manager rearranged the layout of his factory floor.This is an example of

(Multiple Choice)

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Question 27

If the total cost of producing 20 units of output is $1,000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output?

(Multiple Choice)

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Question 28

The additional output a firm produces by hiring one more worker is called the marginal product of labor.

(True/False)

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Question 29

The processes a firm uses to turn inputs into outputs of goods and services is called

(Multiple Choice)

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Question 30

Which of the following is a fixed cost?

(Multiple Choice)

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Question 31

Which of the following statements is false?

(Multiple Choice)

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Question 32

If marginal cost is above the average variable cost, then average variable cost is decreasing.

(True/False)

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Question 33

Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s.Bill took out a loan from his bank to pay for his store and its initial inventory.Bill pays the bank $900 per week for his loan.The $900 bank payment

(Multiple Choice)

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Question 34

As output increases

(Multiple Choice)

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Question 35

The slope of an isocost line and equals the negative of .

(Multiple Choice)

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Question 36

Marginal cost is the

(Multiple Choice)

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Question 37

If a firm is producing no output in the short run, then its total costs are zero.

(True/False)

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Question 38

Which of the following statements is true?

(Multiple Choice)

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Question 39

Average total cost is equal to

(Multiple Choice)

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Question 40

Showing 21 - 40 of 328

Diseconomies of scale occur when

A curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output is called

The marginal cost curve is U-shaped because of the law of increasing opportunity costs.

Which of the following statements is true?

What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business.

A firm increased its production and sales because the firm's manager rearranged the layout of his factory floor.This is an example of

If the total cost of producing 20 units of output is $1,000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output?

The additional output a firm produces by hiring one more worker is called the marginal product of labor.

The processes a firm uses to turn inputs into outputs of goods and services is called

Which of the following is a fixed cost?

Which of the following statements is false?

If marginal cost is above the average variable cost, then average variable cost is decreasing.

Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s.Bill took out a loan from his bank to pay for his store and its initial inventory.Bill pays the bank $900 per week for his loan.The $900 bank payment

As output increases

The slope of an isocost line and equals the negative of .

Marginal cost is the

If a firm is producing no output in the short run, then its total costs are zero.

Which of the following statements is true?

Average total cost is equal to

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

Diseconomies of scale occur when

A curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output is called

The marginal cost curve is U-shaped because of the law of increasing opportunity costs.

Which of the following statements is true?

What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business.

A firm increased its production and sales because the firm's manager rearranged the layout of his factory floor.This is an example of

If the total cost of producing 20 units of output is $1,000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output?

The additional output a firm produces by hiring one more worker is called the marginal product of labor.

The processes a firm uses to turn inputs into outputs of goods and services is called

Which of the following is a fixed cost?

Which of the following statements is false?

If marginal cost is above the average variable cost, then average variable cost is decreasing.

Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s.Bill took out a loan from his bank to pay for his store and its initial inventory.Bill pays the bank $900 per week for his loan.The $900 bank payment

As output increases

The slope of an isocost line ________ and equals the negative of ________.

Marginal cost is the

If a firm is producing no output in the short run, then its total costs are zero.

Which of the following statements is true?

Average total cost is equal to

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

The slope of an isocost line and equals the negative of .