Question 1

In economics,a "normal profit" is the return to

Accepted Answer

A) labor. 
B) capital. 
C) land. 
D) entrepreneurship. 
E) Answers B and D are correct. 
A) labor. 
B) capital. 
C) land. 
D) entrepreneurship. 
E) Answers B and D are correct.

Question 2

Which of the following is an example of an implicit cost?

Accepted Answer

A) wages paid to employees 
B) interest paid to a bank on a building loan 
C) the cost of using capital an owner donates to the business 
D) dollars paid to a supplier for materials used in production 
E) liability insurance payments made only once a year 
A) wages paid to employees 
B) interest paid to a bank on a building loan 
C) the cost of using capital an owner donates to the business 
D) dollars paid to a supplier for materials used in production 
E) liability insurance payments made only once a year

Question 3

What is the long-run average cost curve? What are the three ranges of output and in what order do they occur? Briefly define each of the three ranges.

Accepted Answer

The long-run average cost curve shows th

Question 4

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The total cost of producing 80 units equals

Accepted Answer

A) less than $5. 
B) more than $5 and less than $110. 
C) more than $110 and less than $120. 
D) more than $120 and less than $150. 
E) more than $150. 
A) less than $5. 
B) more than $5 and less than $110. 
C) more than $110 and less than $120. 
D) more than $120 and less than $150. 
E) more than $150.

Question 5

The marginal product of labor is

Accepted Answer

A) total product divided by labor. 
B) the change in total product divided by the increase in labor. 
C) a measure of labor. 
D) output that does not meet quality specifications. 
E) total product minus the quantity of labor. 
A) total product divided by labor. 
B) the change in total product divided by the increase in labor. 
C) a measure of labor. 
D) output that does not meet quality specifications. 
E) total product minus the quantity of labor.

Question 6

For a business,opportunity cost measures

Accepted Answer

A) only the cost of labor and materials. 
B) only the implicit costs of the business. 
C) the cost of all the factors of production the firm employs. 
D) only the explicit costs the firm must pay. 
E) all of the firm's costs including its normal profit and its economic profit. 
A) only the cost of labor and materials. 
B) only the implicit costs of the business. 
C) the cost of all the factors of production the firm employs. 
D) only the explicit costs the firm must pay. 
E) all of the firm's costs including its normal profit and its economic profit.

Question 7

If a firm does not produce any output,its

Accepted Answer

A) total fixed cost must be zero. 
B) economic profit must be positive. 
C) total variable cost must be zero. 
D) total costs must be zero. 
E) marginal cost must be zero. 
A) total fixed cost must be zero. 
B) economic profit must be positive. 
C) total variable cost must be zero. 
D) total costs must be zero. 
E) marginal cost must be zero.

Question 8

From a firm's viewpoint,opportunity cost is the

Accepted Answer

A) best alternative use customers can find for the firm's output. 
B) cost the firm must pay for the factors of production it employs to attract them from their best alternative use. 
C) accounting cost of resources. 
D) price a firm can charge for its output. 
E) cost of acquiring the opportunity to sell to its customers. 
A) best alternative use customers can find for the firm's output. 
B) cost the firm must pay for the factors of production it employs to attract them from their best alternative use. 
C) accounting cost of resources. 
D) price a firm can charge for its output. 
E) cost of acquiring the opportunity to sell to its customers.

Question 9

The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases,the

Accepted Answer

A) average total cost decreases. 
B) average total cost increases. 
C) marginal cost increases. 
D) marginal cost decreases. 
E) average variable cost is constant and the average fixed cost decreases. 
A) average total cost decreases. 
B) average total cost increases. 
C) marginal cost increases. 
D) marginal cost decreases. 
E) average variable cost is constant and the average fixed cost decreases.

Question 10

Under which of the following sets of circumstances is it definitely the case that the average product increases as more labor is hired?

Accepted Answer

A) Total product increases as more labor is hired. 
B) The marginal product is equal to the average product. 
C) The marginal product is positive. 
D) The marginal product is greater than the average product. 
E) The marginal product is less than the average product. 
A) Total product increases as more labor is hired. 
B) The marginal product is equal to the average product. 
C) The marginal product is positive. 
D) The marginal product is greater than the average product. 
E) The marginal product is less than the average product.

Question 11

The marginal product of labor equals the change in ________ from a one-unit increase in the quantity of labor.

Accepted Answer

A) total product 
B) average product 
C) total cost 
D) the slope of the average product curve 
E) the wage rate 
A) total product 
B) average product 
C) total cost 
D) the slope of the average product curve 
E) the wage rate

Question 12

When the slope of the total product curve is steep,the marginal product is

Accepted Answer

A) zero. 
B) negative. 
C) high. 
D) low. 
E) not defined. 
A) zero. 
B) negative. 
C) high. 
D) low. 
E) not defined.

Question 13

Which of the following contributes to increasing marginal returns?

Accepted Answer

A) decreasing implicit costs 
B) increasing explicit costs 
C) specialization of labor 
D) Both answers A and B are correct. 
E) Both answers A and C are correct. 
A) decreasing implicit costs 
B) increasing explicit costs 
C) specialization of labor 
D) Both answers A and B are correct. 
E) Both answers A and C are correct.

Question 14

Draw an average total cost curve,an average variable cost,and a marginal cost curve all on the same graph.Make sure to correctly label the axes.What relationship must exist between the marginal cost curve and the average total cost and average variable cost curves?

Accepted Answer

@#IMG-DLM& Typical cost curves are above.The avera

In economics,a "normal profit" is the return to

Which of the following is an example of an implicit cost?

What is the long-run average cost curve? What are the three ranges of output and in what order do they occur? Briefly define each of the three ranges.

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The total cost of producing 80 units equals

The marginal product of labor is

For a business,opportunity cost measures

If a firm does not produce any output,its

From a firm's viewpoint,opportunity cost is the

The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases,the

Under which of the following sets of circumstances is it definitely the case that the average product increases as more labor is hired?

The marginal product of labor equals the change in ________ from a one-unit increase in the quantity of labor.

When the slope of the total product curve is steep,the marginal product is

Which of the following contributes to increasing marginal returns?

Draw an average total cost curve,an average variable cost,and a marginal cost curve all on the same graph.Make sure to correctly label the axes.What relationship must exist between the marginal cost curve and the average total cost and average variable cost curves?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 10: Production and Cost

In economics,a "normal profit" is the return to

Which of the following is an example of an implicit cost?

What is the long-run average cost curve? What are the three ranges of output and in what order do they occur? Briefly define each of the three ranges.

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The total cost of producing 80 units equals

The marginal product of labor is

For a business,opportunity cost measures

If a firm does not produce any output,its

From a firm's viewpoint,opportunity cost is the

The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases,the

Under which of the following sets of circumstances is it definitely the case that the average product increases as more labor is hired?

The marginal product of labor equals the change in ________ from a one-unit increase in the quantity of labor.

When the slope of the total product curve is steep,the marginal product is

Which of the following contributes to increasing marginal returns?

Draw an average total cost curve,an average variable cost,and a marginal cost curve all on the same graph.Make sure to correctly label the axes.What relationship must exist between the marginal cost curve and the average total cost and average variable cost curves?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters