Exam 8: Production and Cost

Suppose that the units of variable input in a coal-production process are 1, 2, 3, 4, and 5, and the corresponding total outputs per period are 10, 15, 19, 22, and 24 tons, respectively.The marginal product of the third unit of input is _______ tons per period.

The change in total output resulting from a 1-unit increase in the quantity of a factor of production used, holding the quantities of all other factors of production constant, is:

Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencing:

A planning period during which all of a firm's factors of production are variable is the:

The marginal cost curve intersects the average total cost curve at its:

A firm becomes more labor-intensive when it:

Which of the following is (are) correct?

The law of diminishing marginal returns indicates that marginal returns:

The second of the three ranges of production is characterized by _______ marginal returns.

The law of diminishing marginal returns assumes that there:

Use the following to answer question(s): -(Exhibit: Costs of Producing Bagels) Marginal cost reaches its minimum value for the _______ bagel.

The chief difference between the long- and short-run costs facing a firm is that:

Use the following for questions 44-50. -(Exhibit: Total Product and Marginal Product) Diminishing marginal returns begin with the ________ worker.

At 10 units of output, the vertical distance between a firm's average total cost and average variable cost curves will be:

Use the following for questions 37-43. Exhibit: Total Product -(Exhibit: Total Product) Units of labor added after L₁ and up to L₂ are:

Use the following to answer question(s): Short-Run Costs -(Exhibit: Short-Run Costs) Curve A declines from a cost of about $50 and a quantity of 1 to a cost of about $40 and a quantity of 2 (point F) at which time it rises again.The declining segment is due to ________ marginal returns, and the rising segment is due to _______ marginal returns.

As a firm increases its use of labor relative to capital, it is becoming more:

The maximum possible output for a given cost can be obtained from two factors, labor (L) and capital (K), if:

Diminishing marginal returns are responsible for the positive slope of the marginal product curve.

A variable factor of production is defined in the text as one: