Exam 5: Supply Decisions

Which of the following is the best explanation of why the law of diminishing returns does not apply in the long run?

Economic and accounting costs will differ:

The production function indicates how much output producers will actually produce.

Table 5.6 Complete the following table,and use the information in the table to answer the question(s)below. -In Table 5.6,the total variable cost of 2 units of output is:

In the short run,a manufacturer should produce the next unit of output as long as:

Figure 5.2: -In Figure 5.2,what is the marginal cost of the 12^th unit of output?

What happens along the average total cost curve as: a)Marginal product is increasing? b)Marginal cost is decreasing? c)Average variable costs are decreasing? d)Total product increases at a decreasing rate?

The average total cost curve is:

If more of an input factor is used,while holding other inputs constant,a firm will eventually experience:

Which of the following is equivalent to average total cost?

Which of the following will always increase as output increases?

When a firm makes an investment decision,it views all inputs as:

Figure 5.1: -In Figure 5.1,the marginal physical product of the fourth unit of labor is:

Total output may continue to rise even though marginal physical product is decreasing.

Which of the following are factors of production for a typical college?

Figure 5.1: -In Figure 5.1,the marginal physical product of the third unit of labor is:

Marginal physical product is:

Economic cost is:

Table 5.2-Jeans Production -If the firm in Table 5.2 can sell jeans for $7.00 per pair,the total profit from producing 40 pair is:

Which of the following statements concerning the relationship between total product (TP)and marginal physical product (MPP)is not correct?