Question 1

-Refer to the graph above to answer this question.Which of the following statements is correct?

Accepted Answer

A) Curve 1 illustrates marginal product while curve 3 illustrates average variable cost. 
B) Curve 1 illustrates average variable cost while curve 3 illustrates marginal product. 
C) Curve 1 illustrates average product while curve 3 illustrates average variable cost. 
D) Curve 2 illustrates marginal product while curve 3 illustrates average variable cost. 
E) Diminishing returns are best illustrated by curves 2 and 3. 
A) Curve 1 illustrates marginal product while curve 3 illustrates average variable cost. 
B) Curve 1 illustrates average variable cost while curve 3 illustrates marginal product. 
C) Curve 1 illustrates average product while curve 3 illustrates average variable cost. 
D) Curve 2 illustrates marginal product while curve 3 illustrates average variable cost. 
E) Diminishing returns are best illustrated by curves 2 and 3.

Question 2

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.
  
-Refer to the information above to answer this question.What are the missing numbers for TP in the second column?

Accepted Answer

A) 12,28,75,140 and 150. 
B) 12,28,70,130 and 150. 
C) 12,60,90,180 and 130. 
D) 8,75,100,130 and 135. 
E) 8,60,100,135 and 150. 
A) 12,28,75,140 and 150. 
B) 12,28,70,130 and 150. 
C) 12,60,90,180 and 130. 
D) 8,75,100,130 and 135. 
E) 8,60,100,135 and 150.

Question 3

Differentiate between economic capacity and excess capacity?

Accepted Answer

Economic capacity is the output at which

Question 4

Complete the following table.

Accepted Answer

The answer of Complete the following table.
  ...

Question 5

What is an explicit cost?

Accepted Answer

A) A cost that is actually paid out in money. 
B) A cost that is not actually paid out in money. 
C) A historical cost of buying equipment for production that has no current resale value. 
D) The annual cost of any asset that is expected to be in use for more than a year. 
A) A cost that is actually paid out in money. 
B) A cost that is not actually paid out in money. 
C) A historical cost of buying equipment for production that has no current resale value. 
D) The annual cost of any asset that is expected to be in use for more than a year.

Question 6

Below are some production data for Quite Simple Products Ltd.
  
-Refer to the information above to answer this question.How many units of labour are being used when the firm's marginal cost is at a minimum?

Accepted Answer

A) 1. 
B) 2. 
C) 3. 
D) 5. 
E) 8. 
A) 1. 
B) 2. 
C) 3. 
D) 5. 
E) 8.

Question 7

-Refer to the information above to answer this question.What is the total variable cost of producing 50 units of output?

Accepted Answer

A) $150. 
B) $260. 
C) $410. 
D) Cannot be determined. 
A) $150. 
B) $260. 
C) $410. 
D) Cannot be determined.

Question 8

-Refer to the graph above to answer this question.Which curve illustrates marginal cost?

Accepted Answer

A) 1. 
B) 2. 
C) 3. 
D) 4. 
A) 1. 
B) 2. 
C) 3. 
D) 4.

Question 9

-Refer to the graph above to answer this question.What output is the most productive output?

Accepted Answer

A) 40. 
B) 70. 
C) 80. 
D) 90. 
A) 40. 
B) 70. 
C) 80. 
D) 90.

Question 10

What is average fixed cost?

Accepted Answer

A) It is all the costs that do not vary with the level of output. 
B) It is total cost less total variable cost. 
C) It is total fixed cost divided by the level of output. 
D) It is total fixed costs less total variable costs. 
A) It is all the costs that do not vary with the level of output. 
B) It is total cost less total variable cost. 
C) It is total fixed cost divided by the level of output. 
D) It is total fixed costs less total variable costs.

Question 11

"If average variable cost is increasing,then average total cost must be increasing as well." Evaluate this statement.

Accepted Answer

This statement is incorrect.Average tota

Question 12

-Refer to the graph above to answer this question.At what output does diminishing returns begin?

Accepted Answer

A) 1. 
B) 6. 
C) 8. 
D) 11. 
A) 1. 
B) 6. 
C) 8. 
D) 11.

Question 13

-Refer to the graph above to answer this question.At what output does diminishing returns begin?

Accepted Answer

A) 40. 
B) 70. 
C) 80. 
D) 90. 
A) 40. 
B) 70. 
C) 80. 
D) 90.

Question 14

How do economists define economic capacity?

Accepted Answer

A) The maximum physical output possible. 
B) The output that maximizes total cost. 
C) The output that maximizes total product. 
D) The output that minimizes marginal cost. 
E) The output that minimizes average total cost. 
A) The maximum physical output possible. 
B) The output that maximizes total cost. 
C) The output that maximizes total product. 
D) The output that minimizes marginal cost. 
E) The output that minimizes average total cost.

Question 15

-Refer to the graph above to answer this question.Which of the following statements is correct?

Accepted Answer

A) Curve 1 illustrates average product while curve 3 illustrates average variable cost. 
B) Curve 1 illustrates average variable cost while curve 3 illustrates marginal product. 
C) Curve 1 illustrates average product while curve 4 illustrates average variable cost. 
D) Curve 2 illustrates marginal product while curve 3 illustrates average variable cost. 
E) Curves 1 and 2 are cost curves while curves 3 and 4 are product curves. 
A) Curve 1 illustrates average product while curve 3 illustrates average variable cost. 
B) Curve 1 illustrates average variable cost while curve 3 illustrates marginal product. 
C) Curve 1 illustrates average product while curve 4 illustrates average variable cost. 
D) Curve 2 illustrates marginal product while curve 3 illustrates average variable cost. 
E) Curves 1 and 2 are cost curves while curves 3 and 4 are product curves.

Question 16

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.
  
-Refer to the information above to answer this question.As one reads down the MC column,what is the pattern in the numbers?

Accepted Answer

A) They fall until the fourth unit of labour used and then rise. 
B) They fall until the fifth unit of labour used and then rise. 
C) They rise until the fourth unit of labour used and then fall. 
D) They rise until the fifth unit of labour used and then fall. 
E) They continually rise. 
A) They fall until the fourth unit of labour used and then rise. 
B) They fall until the fifth unit of labour used and then rise. 
C) They rise until the fourth unit of labour used and then fall. 
D) They rise until the fifth unit of labour used and then fall. 
E) They continually rise.

Question 17

-Refer to the graph above to answer this question.Which of the following statements is correct?

Accepted Answer

A) Curve 1 illustrates marginal product while curve 3 illustrates average cost. 
B) Curve 1 illustrates average cost while curve 3 illustrates marginal product. 
C) Curve 2 illustrates marginal cost while curve 3 illustrates marginal product. 
D) Curve 2 illustrates marginal product while curve 3 illustrates marginal cost. 
E) Curves 1 and 2 are cost curves while curves 3 and 4 are product curves. 
A) Curve 1 illustrates marginal product while curve 3 illustrates average cost. 
B) Curve 1 illustrates average cost while curve 3 illustrates marginal product. 
C) Curve 2 illustrates marginal cost while curve 3 illustrates marginal product. 
D) Curve 2 illustrates marginal product while curve 3 illustrates marginal cost. 
E) Curves 1 and 2 are cost curves while curves 3 and 4 are product curves.

Question 18

-Refer to the graph above to answer this question.What output is economic capacity?

Accepted Answer

A) 40. 
B) 70. 
C) 80. 
D) 90. 
A) 40. 
B) 70. 
C) 80. 
D) 90.

Question 19

-Which of the following statements would be true about a firm which has excess capacity?

Accepted Answer

A) Its average total cost would be at a minimum. 
B) Its average total cost would not be at a minimum. 
C) Its average total cost may or may not be at a minimum but the firm would not be at economic capacity. 
D) It would not be at capacity output,but its average total cost would be at a minimum. 
E) It would need to reduce output to achieve minimum average total cost. 
A) Its average total cost would be at a minimum. 
B) Its average total cost would not be at a minimum. 
C) Its average total cost may or may not be at a minimum but the firm would not be at economic capacity. 
D) It would not be at capacity output,but its average total cost would be at a minimum. 
E) It would need to reduce output to achieve minimum average total cost.

Question 20

Differentiate between economic profits and accounting profits.

Accepted Answer

Economic profits are the difference betw

-Refer to the graph above to answer this question.Which of the following statements is correct?

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought. -Refer to the information above to answer this question.What are the missing numbers for TP in the second column?

Differentiate between economic capacity and excess capacity?

Complete the following table.

What is an explicit cost?

Below are some production data for Quite Simple Products Ltd. -Refer to the information above to answer this question.How many units of labour are being used when the firm's marginal cost is at a minimum?

-Refer to the information above to answer this question.What is the total variable cost of producing 50 units of output?

-Refer to the graph above to answer this question.Which curve illustrates marginal cost?

-Refer to the graph above to answer this question.What output is the most productive output?

What is average fixed cost?

"If average variable cost is increasing,then average total cost must be increasing as well." Evaluate this statement.

-Refer to the graph above to answer this question.At what output does diminishing returns begin?

-Refer to the graph above to answer this question.At what output does diminishing returns begin?

How do economists define economic capacity?

-Refer to the graph above to answer this question.Which of the following statements is correct?

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought. -Refer to the information above to answer this question.As one reads down the MC column,what is the pattern in the numbers?

-Refer to the graph above to answer this question.Which of the following statements is correct?

-Refer to the graph above to answer this question.What output is economic capacity?

-Which of the following statements would be true about a firm which has excess capacity?

Differentiate between economic profits and accounting profits.

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 6: A Firms Production Decisions and Costs in the Short Run

-Refer to the graph above to answer this question.Which of the following statements is correct?

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought. -Refer to the information above to answer this question.What are the missing numbers for TP in the second column?

Differentiate between economic capacity and excess capacity?

Complete the following table.

What is an explicit cost?

Below are some production data for Quite Simple Products Ltd. -Refer to the information above to answer this question.How many units of labour are being used when the firm's marginal cost is at a minimum?

-Refer to the information above to answer this question.What is the total variable cost of producing 50 units of output?

-Refer to the graph above to answer this question.Which curve illustrates marginal cost?

-Refer to the graph above to answer this question.What output is the most productive output?

What is average fixed cost?

"If average variable cost is increasing,then average total cost must be increasing as well." Evaluate this statement.

-Refer to the graph above to answer this question.At what output does diminishing returns begin?

-Refer to the graph above to answer this question.At what output does diminishing returns begin?

How do economists define economic capacity?

-Refer to the graph above to answer this question.Which of the following statements is correct?

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought. -Refer to the information above to answer this question.As one reads down the MC column,what is the pattern in the numbers?

-Refer to the graph above to answer this question.Which of the following statements is correct?

-Refer to the graph above to answer this question.What output is economic capacity?

-Which of the following statements would be true about a firm which has excess capacity?

Differentiate between economic profits and accounting profits.

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters