Question 1

Table 8.7
-Complete Table 8.7.

Accepted Answer

The answer of   
Table 8.7
-Complete Table 8.7....

Question 2

-Refer to Figure 8.3.If two microwave ovens are produced,Micro Oven's total variable costs are

Accepted Answer

A)  $350. 
B)  $425. 
C)  $500. 
D)  indeterminate from this information. 
A)  $350. 
B)  $425. 
C)  $500. 
D)  indeterminate from this information.

Question 3

As output increases,it is always true that

Accepted Answer

A)  average total cost decreases. 
B)  average variable cost is above marginal cost. 
C)  average fixed costs decrease. 
D)  total fixed costs increase. 
A)  average total cost decreases. 
B)  average variable cost is above marginal cost. 
C)  average fixed costs decrease. 
D)  total fixed costs increase.

Question 4

The textbook identifies two sources of economies of scale.What are these sources?

Accepted Answer

Economies of scale c

Question 5

Scenario 8.1: Ana used to work for an advertising agency where she earned a yearly salary of $60,000. She got tired of working for another company and therefore opened her own advertising company. Ana now pays her designer $40,000 per year and spends $25,000 for rent and utilities. She earns $120,000 in annual revenue.
-Refer to Scenario 8.1.Ana's economic profit is

Accepted Answer

A)  -$5,000. 
B)  -$15,000. 
C)  -$55,000. 
D)  -$120,000. 
A)  -$5,000. 
B)  -$15,000. 
C)  -$55,000. 
D)  -$120,000.

Question 6

-Refer to Figure 8.6.The total fixed costs for Cyndy's Floral Arrangements are $1,000.If Cyndy's Floral Arrangements produces 200 silk flower arrangements,the average fixed costs are

Accepted Answer

A)  $0.20. 
B)  $5. 
C)  $20. 
D)  $200. 
A)  $0.20. 
B)  $5. 
C)  $20. 
D)  $200.

Question 7

A firm's accounting cost is always higher than its economic cost.

Accepted Answer

A) True 
 B)False

Question 8

As output increases,average fixed costs

Accepted Answer

A)  decrease. 
B)  initially decrease and then increase. 
C)  remain constant. 
D)  increase. 
A)  decrease. 
B)  initially decrease and then increase. 
C)  remain constant. 
D)  increase.

Question 9

-Refer to Figure 8.1.The lawn mower company's total-product curve shows which of the following?

Accepted Answer

A)  only the effects of labor specialization 
B)  only the effects of diminishing returns 
C)  the effects of both labor specialization and diminishing returns 
D)  none of the above 
A)  only the effects of labor specialization 
B)  only the effects of diminishing returns 
C)  the effects of both labor specialization and diminishing returns 
D)  none of the above

Question 10

The period of time when a firm is able to change all of its inputs,or factors of production,is called the

Accepted Answer

A)  economic term. 
B)  short run. 
C)  accounting term. 
D)  long run. 
A)  economic term. 
B)  short run. 
C)  accounting term. 
D)  long run.

Question 11

-Refer to Figure 8.2.The marginal product of the sixth worker is

Accepted Answer

A)  -5. 
B)  0. 
C)  5. 
D)  50. 
A)  -5. 
B)  0. 
C)  5. 
D)  50.

Question 12

Long-run cost curves are generally steeper than short-run cost curves.

Accepted Answer

A) True 
 B)False

Question 13

The manager of HDG Computers reports that if output expands in the long run then average costs will rise.This is an example of

Accepted Answer

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

Question 14

O'Connor Lamp Factory has total fixed costs of $4,500.O'Connor Lamp Factory's average variable cost per lamp is $30 and its average total cost is $45.O'Connor Lamp Factory sells each lamp for $100.How many lamps is O'Connor Lamp Factory currently manufacturing?

Accepted Answer

A)  200 lamps 
B)  250 lamps 
C)  300 lamps 
D)  a number of lamps that is indeterminate from this information 
A)  200 lamps 
B)  250 lamps 
C)  300 lamps 
D)  a number of lamps that is indeterminate from this information

Question 15

Average total cost is equal to

Accepted Answer

A)  total cost divided by quantity. 
B)  variable cost divided by quantity. 
C)  average fixed cost minus average variable cost. 
D)  the extra cost of producing one more unit of output. 
A)  total cost divided by quantity. 
B)  variable cost divided by quantity. 
C)  average fixed cost minus average variable cost. 
D)  the extra cost of producing one more unit of output.

Question 16

If a firm's production process exhibits economies of scale for all levels of output,then the firm's long-run average cost curve will be

Accepted Answer

A)  horizontal. 
B)  positively sloped. 
C)  negatively sloped. 
D)  U-shaped. 
A)  horizontal. 
B)  positively sloped. 
C)  negatively sloped. 
D)  U-shaped.

Question 17

Scenario 8.1: Ana used to work for an advertising agency where she earned a yearly salary of $60,000. She got tired of working for another company and therefore opened her own advertising company. Ana now pays her designer $40,000 per year and spends $25,000 for rent and utilities. She earns $120,000 in annual revenue.
-Refer to Scenario 8.1.Ana's opportunity cost of running her own business is

Accepted Answer

A)  $30,000. 
B)  $60,000. 
C)  $65,000. 
D)  $120,000. 
A)  $30,000. 
B)  $60,000. 
C)  $65,000. 
D)  $120,000.

Question 18

-Refer to Figure 8.1.The marginal product of the second worker is ________ lawns mowed.

Accepted Answer

A)  4 
B)  5 
C)  5.5 
D)  11 
A)  4 
B)  5 
C)  5.5 
D)  11

Question 19

One of the main differences between the long run and the short run is that

Accepted Answer

A)  the firm can earn a profit. 
B)  the firm can operate at a loss. 
C)  there are no diminishing returns in the short run. 
D)  there are no diminishing returns in the long run. 
A)  the firm can earn a profit. 
B)  the firm can operate at a loss. 
C)  there are no diminishing returns in the short run. 
D)  there are no diminishing returns in the long run.

Question 20

Marginal cost is equal to

Accepted Answer

A)  variable cost divided by output. 
B)  output divided by variable cost. 
C)  the change in output divided by the change in variable cost. 
D)  the change in variable cost divided by the change in output. 
A)  variable cost divided by output. 
B)  output divided by variable cost. 
C)  the change in output divided by the change in variable cost. 
D)  the change in variable cost divided by the change in output.

Table 8.7 -Complete Table 8.7.

-Refer to Figure 8.3.If two microwave ovens are produced,Micro Oven's total variable costs are

As output increases,it is always true that

The textbook identifies two sources of economies of scale.What are these sources?

-Refer to Figure 8.6.The total fixed costs for Cyndy's Floral Arrangements are $1,000.If Cyndy's Floral Arrangements produces 200 silk flower arrangements,the average fixed costs are

A firm's accounting cost is always higher than its economic cost.

As output increases,average fixed costs

-Refer to Figure 8.1.The lawn mower company's total-product curve shows which of the following?

The period of time when a firm is able to change all of its inputs,or factors of production,is called the

-Refer to Figure 8.2.The marginal product of the sixth worker is

Long-run cost curves are generally steeper than short-run cost curves.

The manager of HDG Computers reports that if output expands in the long run then average costs will rise.This is an example of

O'Connor Lamp Factory has total fixed costs of $4,500.O'Connor Lamp Factory's average variable cost per lamp is $30 and its average total cost is $45.O'Connor Lamp Factory sells each lamp for $100.How many lamps is O'Connor Lamp Factory currently manufacturing?

Average total cost is equal to

If a firm's production process exhibits economies of scale for all levels of output,then the firm's long-run average cost curve will be

-Refer to Figure 8.1.The marginal product of the second worker is ________ lawns mowed.

One of the main differences between the long run and the short run is that

Marginal cost is equal to

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 8: Production Technology and Cost

Table 8.7 -Complete Table 8.7.

-Refer to Figure 8.3.If two microwave ovens are produced,Micro Oven's total variable costs are

As output increases,it is always true that

The textbook identifies two sources of economies of scale.What are these sources?

-Refer to Figure 8.6.The total fixed costs for Cyndy's Floral Arrangements are $1,000.If Cyndy's Floral Arrangements produces 200 silk flower arrangements,the average fixed costs are

A firm's accounting cost is always higher than its economic cost.

As output increases,average fixed costs

-Refer to Figure 8.1.The lawn mower company's total-product curve shows which of the following?

The period of time when a firm is able to change all of its inputs,or factors of production,is called the

-Refer to Figure 8.2.The marginal product of the sixth worker is

Long-run cost curves are generally steeper than short-run cost curves.

The manager of HDG Computers reports that if output expands in the long run then average costs will rise.This is an example of

O'Connor Lamp Factory has total fixed costs of $4,500.O'Connor Lamp Factory's average variable cost per lamp is $30 and its average total cost is $45.O'Connor Lamp Factory sells each lamp for $100.How many lamps is O'Connor Lamp Factory currently manufacturing?

Average total cost is equal to

If a firm's production process exhibits economies of scale for all levels of output,then the firm's long-run average cost curve will be

-Refer to Figure 8.1.The marginal product of the second worker is ________ lawns mowed.

One of the main differences between the long run and the short run is that

Marginal cost is equal to

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters