Question 1

Table 13-18
  
-Refer to Table 13-18. What is the total output of five workers?

Accepted Answer

Total output of four workers =

Question 2

Scenario 13-10
Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each.
-Refer to Scenario 13-10. An accountant would calculate the total cost for one photo frame to be

Accepted Answer

A)  $5. 
B)  $10. 
C)  $15. 
D)  $25. 
A)  $5. 
B)  $10. 
C)  $15. 
D)  $25.

Question 3

Table 13-20
Listed in the table are the long-run total costs for three different firms.
  
-Refer to Table 13-20. Firm B is experiencing diseconomies of scale.

Accepted Answer

A) True 
 B)False

Question 4

Scenario 13-11
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each.
-Refer to Scenario 13-11. An economist would calculate the total profit for one birdhouse to be

Accepted Answer

A)  $7. 
B)  $11. 
C)  $12. 
D)  $15. 
A)  $7. 
B)  $11. 
C)  $12. 
D)  $15.

Question 5

Which of the following is an example of an implicit cost? i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm
Ii) interest paid on the firm's debt
Iii) rent paid by the firm to lease office space

Accepted Answer

A)  ii) and iii) only 
B)  i) and iii) only 
C)  i) only 
D)  iii) only 
A)  ii) and iii) only 
B)  i) and iii) only 
C)  i) only 
D)  iii) only

Question 6

Table 13-1
  
-Refer to Table 13-1. What is total output when 4 workers are hired?

Accepted Answer

A)  -10 
B)  50 
C)  135 
D)  185 
A)  -10 
B)  50 
C)  135 
D)  185

Question 7

Table 13-17
Consider the following table of long-run total cost for four different firms:
  
-Refer to Table 13-17. Which firm's long-run marginal cost decreases as output increases?

Accepted Answer

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

Question 8

How long does it take a firm to go from the short run to the long run?

Accepted Answer

A)  six months 
B)  one year 
C)  two years 
D)  It depends on the nature of the firm. 
A)  six months 
B)  one year 
C)  two years 
D)  It depends on the nature of the firm.

Question 9

Table 13-3
  
-Refer to Table 13-3. If the firm can sell its output for $1 per unit, what is the profit-maximizing level of output?

Accepted Answer

A)  240 units 
B)  230 units 
C)  190 units 
D)  170 units 
A)  240 units 
B)  230 units 
C)  190 units 
D)  170 units

Question 10

Table 13-3
  
-Refer to Table 13-3. The marginal product of the second worker is

Accepted Answer

A)  90 units. 
B)  85 units. 
C)  80 units. 
D)  20 units. 
A)  90 units. 
B)  85 units. 
C)  80 units. 
D)  20 units.

Question 11

If the marginal-cost curve is rising, then so is the average-total-cost curve.

Accepted Answer

A) True 
 B)False

Question 12

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

Accepted Answer

A)  diseconomies of scale because total cost is rising as output rises. 
B)  constant returns to scale because average total cost is constant as output rises. 
C)  diseconomies of scale because average total cost is rising as output rises. 
D)  economies of scale because average total cost is falling as output rises. 
A)  diseconomies of scale because total cost is rising as output rises. 
B)  constant returns to scale because average total cost is constant as output rises. 
C)  diseconomies of scale because average total cost is rising as output rises. 
D)  economies of scale because average total cost is falling as output rises.

Question 13

In the long run a company that produces and sells popcorn incurs total costs of $1,050 when output is 90 canisters and $1,200 when output is 120 canisters. The popcorn company exhibits

Accepted Answer

A)  diseconomies of scale because total cost is rising as output rises. 
B)  diseconomies of scale because average total cost is rising as output rises. 
C)  economies of scale because total cost is rising as output rises. 
D)  economies of scale because average total cost is falling as output rises. 
A)  diseconomies of scale because total cost is rising as output rises. 
B)  diseconomies of scale because average total cost is rising as output rises. 
C)  economies of scale because total cost is rising as output rises. 
D)  economies of scale because average total cost is falling as output rises.

Question 14

In the short run, if a firm produces nothing, total costs are zero.

Accepted Answer

A) True 
 B)False

Question 15

Scenario 13-1
Korie wants to start her own business making custom furniture. She can purchase a factory that costs $400,000. Korie currently has $500,000 in the bank earning 3 percent interest per year.
-Refer to Scenario 13-1. If Korie purchases the factory with her own money, what is the annual implicit opportunity cost of purchasing the factory?

Accepted Answer

A)  $0 
B)  $3,000 
C)  $12,000 
D)  $15,000 
A)  $0 
B)  $3,000 
C)  $12,000 
D)  $15,000

Question 16

Scenario 13-11
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each.
-Refer to Scenario 13-11. An accountant would calculate the total profit for one birdhouse to be

Accepted Answer

A)  $7. 
B)  $11. 
C)  $12. 
D)  $15. 
A)  $7. 
B)  $11. 
C)  $12. 
D)  $15.

Question 17

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles.  
-Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

Accepted Answer

A)  output levels greater than N 
B)  output levels between M and N 
C)  output levels less than M 
D)  All of the above are correct as long as the firm is operating in the long run. 
A)  output levels greater than N 
B)  output levels between M and N 
C)  output levels less than M 
D)  All of the above are correct as long as the firm is operating in the long run.

Question 18

Which of the following explains why long-run average cost at first decreases as output increases?

Accepted Answer

A)  diseconomies of scale 
B)  less-efficient use of inputs 
C)  fixed costs becoming spread out over more units of output 
D)  gains from specialization of inputs 
A)  diseconomies of scale 
B)  less-efficient use of inputs 
C)  fixed costs becoming spread out over more units of output 
D)  gains from specialization of inputs

Question 19

Marcus sells 300 candy bars at $0.50 each. His total costs are $125. His profits are

Accepted Answer

A)  $25. 
B)  $124.50. 
C)  $125. 
D)  $150. 
A)  $25. 
B)  $124.50. 
C)  $125. 
D)  $150.

Question 20

Table 13-18
  
-Refer to Table 13-18. What is the shape of the marginal-cost curve?

Accepted Answer

MC = change in TC / change in Q, so alth

Table 13-18 -Refer to Table 13-18. What is the total output of five workers?

Table 13-20 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-20. Firm B is experiencing diseconomies of scale.

Which of the following is an example of an implicit cost? i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm Ii) interest paid on the firm's debt Iii) rent paid by the firm to lease office space

Table 13-1 -Refer to Table 13-1. What is total output when 4 workers are hired?

Table 13-17 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-17. Which firm's long-run marginal cost decreases as output increases?

How long does it take a firm to go from the short run to the long run?

Table 13-3 -Refer to Table 13-3. If the firm can sell its output for $1 per unit, what is the profit-maximizing level of output?

Table 13-3 -Refer to Table 13-3. The marginal product of the second worker is

If the marginal-cost curve is rising, then so is the average-total-cost curve.

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

In the long run a company that produces and sells popcorn incurs total costs of $1,050 when output is 90 canisters and $1,200 when output is 120 canisters. The popcorn company exhibits

In the short run, if a firm produces nothing, total costs are zero.

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

Which of the following explains why long-run average cost at first decreases as output increases?

Marcus sells 300 candy bars at $0.50 each. His total costs are $125. His profits are

Table 13-18 -Refer to Table 13-18. What is the shape of the marginal-cost curve?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

Firms in Competitive Markets

Monopoly

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Filters

Exam 12: The Costs of Production

Table 13-18 -Refer to Table 13-18. What is the total output of five workers?

Table 13-20 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-20. Firm B is experiencing diseconomies of scale.

Which of the following is an example of an implicit cost? i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm Ii) interest paid on the firm's debt Iii) rent paid by the firm to lease office space

Table 13-1 -Refer to Table 13-1. What is total output when 4 workers are hired?

Table 13-17 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-17. Which firm's long-run marginal cost decreases as output increases?

How long does it take a firm to go from the short run to the long run?

Table 13-3 -Refer to Table 13-3. If the firm can sell its output for $1 per unit, what is the profit-maximizing level of output?

Table 13-3 -Refer to Table 13-3. The marginal product of the second worker is

If the marginal-cost curve is rising, then so is the average-total-cost curve.

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

In the long run a company that produces and sells popcorn incurs total costs of $1,050 when output is 90 canisters and $1,200 when output is 120 canisters. The popcorn company exhibits

In the short run, if a firm produces nothing, total costs are zero.

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

Which of the following explains why long-run average cost at first decreases as output increases?

Marcus sells 300 candy bars at $0.50 each. His total costs are $125. His profits are

Table 13-18 -Refer to Table 13-18. What is the shape of the marginal-cost curve?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

Firms in Competitive Markets

Monopoly

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Filters