Question 1

On an isoquant/isocost graph,the least cost input combination of producing a given output is

Accepted Answer

A)  any point on the isoquant curve. 
B)  any point on the isocost curve. 
C)  given by the tangency between the isoquant curve and the isocost line. 
D)  one of the intercept values on the graph. 
A)  any point on the isoquant curve. 
B)  any point on the isocost curve. 
C)  given by the tangency between the isoquant curve and the isocost line. 
D)  one of the intercept values on the graph.

Question 2

All of the following cost curves are U-shaped except one.Which curve is not U-shaped?

Accepted Answer

A)  the marginal cost curve 
B)  the average fixed cost curve 
C)  the average total cost curve 
D)  the average variable cost curve 
A)  the marginal cost curve 
B)  the average fixed cost curve 
C)  the average total cost curve 
D)  the average variable cost curve

Question 3

If,when a firm doubles all its inputs,its average cost of production increases,then production displays

Accepted Answer

A)  diminishing returns. 
B)  economies of scale. 
C)  diseconomies of scale. 
D)  declining fixed costs. 
A)  diminishing returns. 
B)  economies of scale. 
C)  diseconomies of scale. 
D)  declining fixed costs.

Question 4

Which of the following are examples of a firm experiencing a positive technological change?
a.A firm is able to reduce its inputs by 15 percent and still produce the same level of output.
b.A seminar attended by the firm's workers makes them more productive.
c.A firm adds 5 percent to its workforce and is able to maintain its initial level of output.
d.A firm restructures its distribution system and is able to save on its shipping times.
e.A firm rearranges its warehouse and finds that it can use fewer workers to maintain its productivity level.

Accepted Answer

Examples a,b,d,and e are examples of pos

Question 5

Table 11-3
  
-Refer to Table 11-3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.The average product of labor will equal 60 boxes when Manny hires

Accepted Answer

A)  the second worker. 
B)  the third worker. 
C)  the fourth worker. 
D)  the fifth worker. 
A)  the second worker. 
B)  the third worker. 
C)  the fourth worker. 
D)  the fifth worker.

Question 6

Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon,Goldilocks.She gave up a salary of $40,000 per year,invested her savings of $30,000 (which was earning 5 percent interest)and borrowed $10,000 from a close friend,agreeing to pay 5 percent interest per year.In her first year,Golda spent $18,000 to rent a salon,hired a part-time assistant for $12,000 and incurred another $15,000 on equipment and hairdressing material.Based on this information,what is the amount of her explicit costs?

Accepted Answer

A)  $45,000 
B)  $45,500 
C)  $47,000 
D)  $87,000 
A)  $45,000 
B)  $45,500 
C)  $47,000 
D)  $87,000

Question 7

In the short run,if average product is at its maximum,then average variable cost is at its minimum.

Accepted Answer

A) True 
 B)False

Question 8

If a firm is experiencing diseconomies of scale,its long-run average cost curve is increasing.

Accepted Answer

A) True 
 B)False

Question 9

Figure 11-18  
-Refer to Figure 11-18.Starting from point d a movement along isoquant1 to point f

Accepted Answer

A)  increases the total cost of production with no change in output. 
B)  increases output but not the total cost of production. 
C)  increases the total cost of production and decreases output. 
D)  increases both the total cost of production and output. 
A)  increases the total cost of production with no change in output. 
B)  increases output but not the total cost of production. 
C)  increases the total cost of production and decreases output. 
D)  increases both the total cost of production and output.

Question 10

Table 11-2
   Table 11-2 summarizes production at the Crunchy Apple Orchard for the month of April 2005.
-Refer to Table 11-2.What is the average product of labor when the orchard employs 5 workers?

Accepted Answer

A)  270 bushels 
B)  54 bushels 
C)  40 bushels 
D)  8 bushels 
A)  270 bushels 
B)  54 bushels 
C)  40 bushels 
D)  8 bushels

On an isoquant/isocost graph,the least cost input combination of producing a given output is

All of the following cost curves are U-shaped except one.Which curve is not U-shaped?

If,when a firm doubles all its inputs,its average cost of production increases,then production displays

In the short run,if average product is at its maximum,then average variable cost is at its minimum.

If a firm is experiencing diseconomies of scale,its long-run average cost curve is increasing.

Figure 11-18 -Refer to Figure 11-18.Starting from point d a movement along isoquant₁ to point f

Table 11-2 Table 11-2 summarizes production at the Crunchy Apple Orchard for the month of April 2005. -Refer to Table 11-2.What is the average product of labor when the orchard employs 5 workers?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice,taxes,and the Distribution of Income

Filters

Exam 11: Technology, production, and Costs

On an isoquant/isocost graph,the least cost input combination of producing a given output is

All of the following cost curves are U-shaped except one.Which curve is not U-shaped?

If,when a firm doubles all its inputs,its average cost of production increases,then production displays

In the short run,if average product is at its maximum,then average variable cost is at its minimum.

If a firm is experiencing diseconomies of scale,its long-run average cost curve is increasing.

Figure 11-18 -Refer to Figure 11-18.Starting from point d a movement along isoquant1 to point f

Table 11-2 Table 11-2 summarizes production at the Crunchy Apple Orchard for the month of April 2005. -Refer to Table 11-2.What is the average product of labor when the orchard employs 5 workers?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice,taxes,and the Distribution of Income

Filters

Figure 11-18 -Refer to Figure 11-18.Starting from point d a movement along isoquant₁ to point f