Question 1

Which of the following is correct?

Accepted Answer

A) The short run for a firm can be longer than the long run for the same firm. 
B) The short run is the same for all firms. 
C) The long run is the time frame in which the quantities of all resources can be varied. 
D) The long run is the time frame in which all resources are fixed. 
E) The long run does not exist for some firms. 
A) The short run for a firm can be longer than the long run for the same firm. 
B) The short run is the same for all firms. 
C) The long run is the time frame in which the quantities of all resources can be varied. 
D) The long run is the time frame in which all resources are fixed. 
E) The long run does not exist for some firms.

Question 2

The long run is a time period that is

Accepted Answer

A) five years or longer. 
B) long enough to change the amount of labor employed. 
C) long enough to change the size of the firm's plant and all other inputs. 
D) long enough to change the amount of labor employed but not to change the size of the plant. 
E) None of the above answers describes the long run. 
A) five years or longer. 
B) long enough to change the amount of labor employed. 
C) long enough to change the size of the firm's plant and all other inputs. 
D) long enough to change the amount of labor employed but not to change the size of the plant. 
E) None of the above answers describes the long run.

Question 3

In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are

Accepted Answer

A) constant economies of scale. 
B) constant returns to scale. 
C) diseconomies of scale. 
D) economies of scale. 
E) constant diseconomies of scale. 
A) constant economies of scale. 
B) constant returns to scale. 
C) diseconomies of scale. 
D) economies of scale. 
E) constant diseconomies of scale.

Question 4

The short run is a time period during which

Accepted Answer

A) some of the firm's resources are fixed. 
B) all of the firm's resources are fixed. 
C) all of the firm's resources are variable. 
D) the fixed cost equals zero. 
E) the firm cannot increase its output. 
A) some of the firm's resources are fixed. 
B) all of the firm's resources are fixed. 
C) all of the firm's resources are variable. 
D) the fixed cost equals zero. 
E) the firm cannot increase its output.

Question 5

Which of the following is an implicit cost?
I∙wages paid to workers
Ii∙the normal profit
Iii∙the electric bill

Accepted Answer

A) i only 
B) ii only 
C) i and ii 
D) ii and iii 
E) Neither i, ii, nor iii 
A) i only 
B) ii only 
C) i and ii 
D) ii and iii 
E) Neither i, ii, nor iii

Question 6

The figure above shows some of a firm's cost curves.
-Curve A is the firm's

Accepted Answer

A) marginal cost curve. 
B) total cost curve. 
C) average total cost curve. 
D) total variable cost curve. 
E) total fixed cost curve. 
A) marginal cost curve. 
B) total cost curve. 
C) average total cost curve. 
D) total variable cost curve. 
E) total fixed cost curve.

Which of the following is correct?

The long run is a time period that is

In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are

The short run is a time period during which

Which of the following is an implicit cost? I∙wages paid to workers Ii∙the normal profit Iii∙the electric bill

The figure above shows some of a firm's cost curves. -Curve A is the firm's

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 14: Production and Cost

Which of the following is correct?

The long run is a time period that is

In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are

The short run is a time period during which

Which of the following is an implicit cost? I∙wages paid to workers Ii∙the normal profit Iii∙the electric bill

The figure above shows some of a firm's cost curves. -Curve A is the firm's

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters