Question 1

-The above table shows the total product schedule for Hair Today, a hair styling salon.Based on the table, the marginal product for Hair Today

Accepted Answer

A) never reaches a maximum. 
B) decreases after the 1st worker. 
C) reaches a maximum with the 4th worker. 
D) reaches a maximum with the 3rd worker. 
E) reaches a maximum with the 5th worker. 
A) never reaches a maximum. 
B) decreases after the 1st worker. 
C) reaches a maximum with the 4th worker. 
D) reaches a maximum with the 3rd worker. 
E) reaches a maximum with the 5th worker.

Question 2

The marginal cost curve is U-shaped.Over the range of output for which the marginal cost is falling as output increases, the marginal product is

Accepted Answer

A) increasing. 
B) decreasing. 
C) constant. 
D) probably changing, but there is no stable relationship between the marginal cost and the marginal product. 
E) not defined. 
A) increasing. 
B) decreasing. 
C) constant. 
D) probably changing, but there is no stable relationship between the marginal cost and the marginal product. 
E) not defined.

Question 3

When a firm becomes so large it is difficult to coordinate and control, it is most likely that

Accepted Answer

A) economies of scale have begun. 
B) diseconomies of scale have begun. 
C) average total cost begins to fall. 
D) long-run average costs become negative. 
E) there is increasing marginal returns to increasing the firm's plant size. 
A) economies of scale have begun. 
B) diseconomies of scale have begun. 
C) average total cost begins to fall. 
D) long-run average costs become negative. 
E) there is increasing marginal returns to increasing the firm's plant size.

Question 4

What are economies of scale? What is the main source of economies of scale?

Accepted Answer

Economies of scale are features of the f

Question 5

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

Accepted Answer

A) first worker. 
B) second worker. 
C) third worker. 
D) fourth worker. 
E) fifth worker. 
A) first worker. 
B) second worker. 
C) third worker. 
D) fourth worker. 
E) fifth worker.

Question 6

Which of the following is true in the long run?

Accepted Answer

A) Total cost equals fixed cost. 
B) Total cost is constant. 
C) All costs are variable. 
D) Marginal cost equals zero. 
E) None of the above are true in the long run. 
A) Total cost equals fixed cost. 
B) Total cost is constant. 
C) All costs are variable. 
D) Marginal cost equals zero. 
E) None of the above are true in the long run.

Question 7

A firm's utility bill is a variable cost.If the cost of utilities increases, then in the figure above ________ upward.

Accepted Answer

A) only curve A shifts 
B) only curve B shifts 
C) only curve C shifts 
D) both curves A and C shift 
E) both curves B and C shift 
A) only curve A shifts 
B) only curve B shifts 
C) only curve C shifts 
D) both curves A and C shift 
E) both curves B and C shift

Question 8

-The table above gives costs at Jan's Bike Shop.Unfortunately, Jan's record keeping has been spotty.Each worker is paid $100 a day.Labor costs are the only variable costs of production.What is the total fixed cost of producing 64 bikes?

Accepted Answer

A) $200 
B) $300 
C) $400 
D) $500 
E) $600 
A) $200 
B) $300 
C) $400 
D) $500 
E) $600

Question 9

Marginal product equals

Accepted Answer

A) the total product produced by a certain amount of labor. 
B) the change in total product that results from a one-unit increase in the quantity of labor employed. 
C) total product divided by the quantity of labor. 
D) the amount of labor needed to produce an increase in production. 
E) total product minus the quantity of labor. 
A) the total product produced by a certain amount of labor. 
B) the change in total product that results from a one-unit increase in the quantity of labor employed. 
C) total product divided by the quantity of labor. 
D) the amount of labor needed to produce an increase in production. 
E) total product minus the quantity of labor.

Question 10

Jake opens a pig farm in Idaho.To start his farm, he uses his entire $50,000 of savings from his savings account.The bank was paying him $2,500 interest on his saving.Explain why the $2,500 is one of Jake's costs.

Accepted Answer

When Jake provides the $50,000 to financ

Question 11

Jill runs a factory that makes lie detectors in Little Rock, Arkansas.This month, Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and, as a result, her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.

Accepted Answer

A) 10 
B) 20 
C) 690 
D) 700 
E) None of the above answers is correct. 
A) 10 
B) 20 
C) 690 
D) 700 
E) None of the above answers is correct.

Question 12

-In the above figure, curve A is the ________ curve and curve C is the ________ curve.

Accepted Answer

A) total variable cost; total fixed cost 
B) total cost; total fixed cost 
C) total fixed cost; total variable cost 
D) total cost; total variable cost 
E) total variable cost; total cost 
A) total variable cost; total fixed cost 
B) total cost; total fixed cost 
C) total fixed cost; total variable cost 
D) total cost; total variable cost 
E) total variable cost; total cost

Question 13

________ cost is defined as a cost of production that does not entail a direct money payment.

Accepted Answer

A) An explicit 
B) An implicit 
C) A total 
D) A fixed 
E) A marginal 
A) An explicit 
B) An implicit 
C) A total 
D) A fixed 
E) A marginal

Question 14

The average product curve

Accepted Answer

A) initially falls then rises. 
B) rises as average variable cost increases. 
C) initially rises and then falls. 
D) shows how productivity changes as output changes. 
E) intersects the marginal cost curve when the average product curve is at its maximum. 
A) initially falls then rises. 
B) rises as average variable cost increases. 
C) initially rises and then falls. 
D) shows how productivity changes as output changes. 
E) intersects the marginal cost curve when the average product curve is at its maximum.

Question 15

A firm's total revenue minus its total opportunity cost is called its

Accepted Answer

A) accounting profit. 
B) normal profit. 
C) economic profit. 
D) abnormal profit. 
E) entrepreneur's profit. 
A) accounting profit. 
B) normal profit. 
C) economic profit. 
D) abnormal profit. 
E) entrepreneur's profit.

Question 16

In the long run, the firm ________ change the number of workers it employs and ________ change the size of its plant.

Accepted Answer

A) can; can 
B) can; cannot 
C) cannot; can 
D) cannot; cannot 
E) In order to answer the question more information is needed about how long is the long run. 
A) can; can 
B) can; cannot 
C) cannot; can 
D) cannot; cannot 
E) In order to answer the question more information is needed about how long is the long run.

Question 17

What do economists mean when they say that a firm's plant is fixed?

Accepted Answer

The phrase that a "firm's plant is fixed

Question 18

-Kenya owns a lawn mowing company.His total product schedule is in the above table.The marginal product of the fourth worker is ________ lawns mowed per week.

Accepted Answer

A) 80 
B) 25 
C) 20 
D) 5 
E) 320 
A) 80 
B) 25 
C) 20 
D) 5 
E) 320

Question 19

If a firm increases its output and its average cost decreases, the firm is experiencing which of the following?

Accepted Answer

A) increasing marginal returns 
B) diseconomies of scale 
C) economies of scale 
D) random luck 
E) decreasing cost of marginal returns 
A) increasing marginal returns 
B) diseconomies of scale 
C) economies of scale 
D) random luck 
E) decreasing cost of marginal returns

Question 20

What is the relationship between the marginal product of labor and the marginal cost?

Accepted Answer

Initially, as each additional unit of la

-The above table shows the total product schedule for Hair Today, a hair styling salon.Based on the table, the marginal product for Hair Today

The marginal cost curve is U-shaped.Over the range of output for which the marginal cost is falling as output increases, the marginal product is

When a firm becomes so large it is difficult to coordinate and control, it is most likely that

What are economies of scale? What is the main source of economies of scale?

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

Which of the following is true in the long run?

A firm's utility bill is a variable cost.If the cost of utilities increases, then in the figure above ________ upward.

-The table above gives costs at Jan's Bike Shop.Unfortunately, Jan's record keeping has been spotty.Each worker is paid $100 a day.Labor costs are the only variable costs of production.What is the total fixed cost of producing 64 bikes?

Marginal product equals

Jake opens a pig farm in Idaho.To start his farm, he uses his entire $50,000 of savings from his savings account.The bank was paying him $2,500 interest on his saving.Explain why the $2,500 is one of Jake's costs.

Jill runs a factory that makes lie detectors in Little Rock, Arkansas.This month, Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and, as a result, her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.

-In the above figure, curve A is the curve and curve C is the curve.

________ cost is defined as a cost of production that does not entail a direct money payment.

The average product curve

A firm's total revenue minus its total opportunity cost is called its

In the long run, the firm change the number of workers it employs and change the size of its plant.

What do economists mean when they say that a firm's plant is fixed?

-Kenya owns a lawn mowing company.His total product schedule is in the above table.The marginal product of the fourth worker is ________ lawns mowed per week.

If a firm increases its output and its average cost decreases, the firm is experiencing which of the following?

What is the relationship between the marginal product of labor and the marginal cost?

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

-The above table shows the total product schedule for Hair Today, a hair styling salon.Based on the table, the marginal product for Hair Today

The marginal cost curve is U-shaped.Over the range of output for which the marginal cost is falling as output increases, the marginal product is

When a firm becomes so large it is difficult to coordinate and control, it is most likely that

What are economies of scale? What is the main source of economies of scale?

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

Which of the following is true in the long run?

A firm's utility bill is a variable cost.If the cost of utilities increases, then in the figure above ________ upward.

-The table above gives costs at Jan's Bike Shop.Unfortunately, Jan's record keeping has been spotty.Each worker is paid $100 a day.Labor costs are the only variable costs of production.What is the total fixed cost of producing 64 bikes?

Marginal product equals

Jake opens a pig farm in Idaho.To start his farm, he uses his entire $50,000 of savings from his savings account.The bank was paying him $2,500 interest on his saving.Explain why the $2,500 is one of Jake's costs.

Jill runs a factory that makes lie detectors in Little Rock, Arkansas.This month, Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and, as a result, her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.

-In the above figure, curve A is the ________ curve and curve C is the ________ curve.

________ cost is defined as a cost of production that does not entail a direct money payment.

The average product curve

A firm's total revenue minus its total opportunity cost is called its

In the long run, the firm ________ change the number of workers it employs and ________ change the size of its plant.

What do economists mean when they say that a firm's plant is fixed?

-Kenya owns a lawn mowing company.His total product schedule is in the above table.The marginal product of the fourth worker is ________ lawns mowed per week.

If a firm increases its output and its average cost decreases, the firm is experiencing which of the following?

What is the relationship between the marginal product of labor and the marginal cost?

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

-In the above figure, curve A is the curve and curve C is the curve.

In the long run, the firm change the number of workers it employs and change the size of its plant.