Question 1

-In the above figure,curve A is the ________ curve and curve B is the ________ curve.

Accepted Answer

A) total variable cost;total fixed cost 
B) total cost;total fixed cost 
C) total fixed cost;total variable cost 
D) total cost;total variable cost 
E) total variable cost;total cost 
A) total variable cost;total fixed cost 
B) total cost;total fixed cost 
C) total fixed cost;total variable cost 
D) total cost;total variable cost 
E) total variable cost;total cost

Question 2

When marginal cost is positive,total cost is ________ as output increases.

Accepted Answer

A) increasing 
B) decreasing 
C) constant 
D) negative 
E) undefined 
A) increasing 
B) decreasing 
C) constant 
D) negative 
E) undefined

Question 3

Which of the following always decreases when output increases?

Accepted Answer

A) total fixed cost 
B) marginal cost 
C) average variable cost 
D) average fixed cost 
E) total cost 
A) total fixed cost 
B) marginal cost 
C) average variable cost 
D) average fixed cost 
E) total cost

Question 4

A cost paid in money is

Accepted Answer

A) not an opportunity cost. 
B) an implicit cost and an opportunity cost. 
C) an explicit cost and an opportunity cost. 
D) not an accounting cost. 
E) an explicit cost but not an opportunity cost. 
A) not an opportunity cost. 
B) an implicit cost and an opportunity cost. 
C) an explicit cost and an opportunity cost. 
D) not an accounting cost. 
E) an explicit cost but not an opportunity cost.

Question 5

The primary goal of a business firm is to

Accepted Answer

A) promote fairness. 
B) make a quality product. 
C) promote workforce job satisfaction. 
D) maximize profit. 
E) increase its production. 
A) promote fairness. 
B) make a quality product. 
C) promote workforce job satisfaction. 
D) maximize profit. 
E) increase its production.

Question 6

The vertical distance between total cost curve and total variable cost curve is equal to

Accepted Answer

A) average fixed cost. 
B) total fixed cost. 
C) average variable cost. 
D) average total cost. 
E) marginal cost. 
A) average fixed cost. 
B) total fixed cost. 
C) average variable cost. 
D) average total cost. 
E) marginal cost.

Question 7

If average variable costs increase as output increases,then

Accepted Answer

A) total fixed cost must be increasing also. 
B) marginal cost must be greater than average variable cost. 
C) total cost must be constant. 
D) output must be zero. 
E) average total cost must be increasing also. 
A) total fixed cost must be increasing also. 
B) marginal cost must be greater than average variable cost. 
C) total cost must be constant. 
D) output must be zero. 
E) average total cost must be increasing also.

Question 8

At the Punjab Bakery,two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour.The marginal product of the third worker is

Accepted Answer

A) 18 cakes,and the average product for three workers is 6 cakes. 
B) 9 cakes and is equal to the average product. 
C) 4 cakes,and the average product for three workers is 6 cakes. 
D) 32 cakes,and the average product for three workers is 9 cakes. 
E) 6 cakes,and the average product for three workers is also 6 cakes. 
A) 18 cakes,and the average product for three workers is 6 cakes. 
B) 9 cakes and is equal to the average product. 
C) 4 cakes,and the average product for three workers is 6 cakes. 
D) 32 cakes,and the average product for three workers is 9 cakes. 
E) 6 cakes,and the average product for three workers is also 6 cakes.

Question 9

Chuck owns a factory that produces leather footballs.His total fixed cost equaled $86,000 last year.His total cost equaled $286,000 last year.Hence Chuck's

Accepted Answer

A) total variable cost was zero. 
B) incurred an economic loss. 
C) total variable cost equaled $200,000. 
D) total variable cost equaled $372,000. 
E) None of the above answers is correct. 
A) total variable cost was zero. 
B) incurred an economic loss. 
C) total variable cost equaled $200,000. 
D) total variable cost equaled $372,000. 
E) None of the above answers is correct.

Question 10

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 6 workers,her average variable cost equals

Accepted Answer

A) $2,400. 
B) $300. 
C) $7.50. 
D) $10.00. 
E) $1,800. 
A) $2,400. 
B) $300. 
C) $7.50. 
D) $10.00. 
E) $1,800.

Question 11

In the long run,the firm ________ change the number of workers it employs and ________ change the size of its plant.

Accepted Answer

A) can;can 
B) can;cannot 
C) cannot;can 
D) cannot;cannot 
E) In order to answer the question,more information is needed about how long the long run is. 
A) can;can 
B) can;cannot 
C) cannot;can 
D) cannot;cannot 
E) In order to answer the question,more information is needed about how long the long run is.

Question 12

The figure above shows some of a firm's cost curves.
-Based on the figure above,curve A is the firm's

Accepted Answer

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

Question 13

If 10 workers can produce 1,500 units of output and 11 workers can produce 1,600 units of output,then the average product of 11 workers is

Accepted Answer

A) 1,600 units. 
B) 1,500 units. 
C) 145.5 units. 
D) 100 units. 
E) 136.4 units. 
A) 1,600 units. 
B) 1,500 units. 
C) 145.5 units. 
D) 100 units. 
E) 136.4 units.

Question 14

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 680 machines.Jill's average product of labor equaled ________ lie detectors per worker.

Accepted Answer

A) 680 
B) 34 
C) 23 
D) 20 
E) None of the above answers is correct. 
A) 680 
B) 34 
C) 23 
D) 20 
E) None of the above answers is correct.

Question 15

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?

Accepted Answer

A) $2 
B) $225 
C) $9,000 
D) $8,000 
E) More information is needed to determine the answer. 
A) $2 
B) $225 
C) $9,000 
D) $8,000 
E) More information is needed to determine the answer.

Question 16

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

Accepted Answer

A) first worker. 
B) second worker. 
C) third worker. 
D) fourth worker. 
E) fifth worker. 
A) first worker. 
B) second worker. 
C) third worker. 
D) fourth worker. 
E) fifth worker.

Question 17

-The table above gives costs at Jan's Bike Shop.Unfortunately,Jan's record keeping has been spotty.Each worker is paid $100 a day.Labor costs are the only variable costs of production.What is the total variable cost of producing 60 bikes?

Accepted Answer

A) $200 
B) $300 
C) $400 
D) $500 
E) None of the above answers is correct. 
A) $200 
B) $300 
C) $400 
D) $500 
E) None of the above answers is correct.

Question 18

Jones Production started business with a small scale plant.Fortunately for Smith,the owner of Jones Production,the business grew rapidly.The table below gives the total costs and the associated output for each year.
a.Complete the table by finding the average cost for each scale.   
b.Over what range of total product (output)did Jones Production experience economies of scale,constant returns to scale,and diseconomies of scale?

Accepted Answer

@#IMG-DLM& a.The completed table is above.
b.There

Question 19

Costs paid in money to hire a resource is

Accepted Answer

A) normal profit. 
B) an implicit cost. 
C) an explicit cost. 
D) an alternative-use cost. 
E) economic profit. 
A) normal profit. 
B) an implicit cost. 
C) an explicit cost. 
D) an alternative-use cost. 
E) economic profit.

Question 20

The figure above shows a firm's total product curve.
-Which of the points show efficient production points?

Accepted Answer

A) all points above the TP curve 
B) all points on the TP curve 
C) all the darkened points below the TP curve 
D) all the points above and on the TP curve 
E) all the darkened points below and on the TP curve 
A) all points above the TP curve 
B) all points on the TP curve 
C) all the darkened points below the TP curve 
D) all the points above and on the TP curve 
E) all the darkened points below and on the TP curve

-In the above figure,curve A is the curve and curve B is the curve.

When marginal cost is positive,total cost is ________ as output increases.

Which of the following always decreases when output increases?

A cost paid in money is

The primary goal of a business firm is to

The vertical distance between total cost curve and total variable cost curve is equal to

If average variable costs increase as output increases,then

At the Punjab Bakery,two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour.The marginal product of the third worker is

Chuck owns a factory that produces leather footballs.His total fixed cost equaled $86,000 last year.His total cost equaled $286,000 last year.Hence Chuck's

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 6 workers,her average variable cost equals

In the long run,the firm change the number of workers it employs and change the size of its plant.

The figure above shows some of a firm's cost curves. -Based on the figure above,curve A is the firm's

If 10 workers can produce 1,500 units of output and 11 workers can produce 1,600 units of output,then the average product of 11 workers is

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 680 machines.Jill's average product of labor equaled ________ lie detectors per worker.

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

-The table above gives costs at Jan's Bike Shop.Unfortunately,Jan's record keeping has been spotty.Each worker is paid $100 a day.Labor costs are the only variable costs of production.What is the total variable cost of producing 60 bikes?

Costs paid in money to hire a resource is

The figure above shows a firm's total product curve. -Which of the points show efficient production points?

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 the above figure,curve A is the ________ curve and curve B is the ________ curve.

When marginal cost is positive,total cost is ________ as output increases.

Which of the following always decreases when output increases?

A cost paid in money is

The primary goal of a business firm is to

The vertical distance between total cost curve and total variable cost curve is equal to

If average variable costs increase as output increases,then

At the Punjab Bakery,two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour.The marginal product of the third worker is

Chuck owns a factory that produces leather footballs.His total fixed cost equaled $86,000 last year.His total cost equaled $286,000 last year.Hence Chuck's

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 6 workers,her average variable cost equals

In the long run,the firm ________ change the number of workers it employs and ________ change the size of its plant.

The figure above shows some of a firm's cost curves. -Based on the figure above,curve A is the firm's

If 10 workers can produce 1,500 units of output and 11 workers can produce 1,600 units of output,then the average product of 11 workers is

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 680 machines.Jill's average product of labor equaled ________ lie detectors per worker.

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?

-Kenya owns a lawn mowing company.His total product schedule is in the above table.Decreasing marginal returns first occur with the

-The table above gives costs at Jan's Bike Shop.Unfortunately,Jan's record keeping has been spotty.Each worker is paid $100 a day.Labor costs are the only variable costs of production.What is the total variable cost of producing 60 bikes?

Costs paid in money to hire a resource is

The figure above shows a firm's total product curve. -Which of the points show efficient production points?

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

-In the above figure,curve A is the curve and curve B is the curve.

In the long run,the firm change the number of workers it employs and change the size of its plant.