Quiz 11: Behind the Supply Curve: Inputs and Costs

A _____ is an organization that produces goods or services for sale. A)production function B)firm C)variable input D)fixed input

In the short run: A)all inputs are fixed. B)all inputs are variable. C)some inputs are fixed and some inputs are variable. D)all costs are variable.

The _____ is the increase in output that is produced when a firm hires an additional worker. A)average product B)total product C)marginal product D)marginal cost

Lauren has 11 people working in her tangerine grove.The marginal product of the eleventh worker is 13 bushels of tangerines.If she hires a twelfth worker,the marginal product of that worker will be _____ bushels. A)14 B)15 C)12 D)The answer cannot be determined with the information available.

The term diminishing returns refers to a: A)falling interest rate that can be expected as one's investment in a single asset increases. B)reduction in profits caused by increasing output beyond the optimal point. C)decrease in total output due to the firm hiring uneducated workers. D)decrease in the extra output due to the use of an additional unit of a variable input when all other inputs are held constant.

The idea of diminishing returns to an input in production suggests that,if a local college adds more custodians,the marginal product of labor for the custodial staff will: A)increase at an increasing rate. B)increase at a decreasing rate. C)decrease. D)not change.

Diminishing returns to an input occur: A)when all inputs are fixed. B)when some inputs are fixed and some are variable. C)when all inputs are variable. D)only when there are no fixed inputs.

If two firms are identical in all respects except that one has more of the fixed input capital than another,the total product curve for the firm with more capital: A)must equal the total product curve for the firm with less capital. B)will lie above the total product curve for the firm with less capital. C)will lie below the total product curve for the firm with less capital. D)will show no diminishing marginal returns.

If two firms are identical in all respects except that one has more of the fixed input capital than another,the marginal product curve for the firm with more capital: A)must equal the marginal product curve for the firm with less capital. B)will lie above the marginal product curve for the firm with less capital. C)will lie below the total marginal curve for the firm with less capital. D)will show no diminishing marginal returns.

Use the following to answer questions 13-15: -(Figure: Marginal Product of Labor)Use Figure: The Marginal Product of Labor.The total product for three workers is _____ bushels. A)51 B)45 C)39 D)15

Use the following to answer questions 13-15: -(Figure: Marginal Product of Labor)Use Figure: The Marginal Product of Labor.The total product of labor for five workers is _____ bushels. A)11 B)45 C)55 D)75

Use the following to answer questions 13-15: -(Figure: Marginal Product of Labor)Use Figure: The Marginal Product of Labor.The total product of labor for eight workers is _____ bushels. A)40 B)35 C)96 D)75

In economics,the short run is defined as: A)less than 1 year. B)less than 6 months. C)the period in which some inputs are considered to be fixed in quantity. D)the period in which some inputs are fixed,but it cannot exceed 1 year.

In economics,the short run is: A)less than 1 week. B)less than 1 month. C)enough time to vary output but not plant capacity. D)enough time to change all inputs to production.

An input whose quantity can be changed in the short run is a(n)_____ input. A)marginal B)fixed C)incremental D)variable

An input whose quantity CANNOT be changed in the short run is: A)marginal. B)fixed. C)incremental. D)variable.

A fixed input is one: A)that only exists in nature,and there is only so much of it. B)that can be used for one thing only. C)that can never produce more or less in any period. D)whose quantity cannot be changed in the short run.

The long run is a planning period: A)over which a firm can consider all inputs as variable. B)of at least five years. C)of more than six months. D)of six months to five years.

In the long run: A)all inputs are fixed. B)inputs are neither variable nor fixed. C)at least one input is variable and one input is fixed. D)all inputs are variable.

The _____ curve shows the absolute quantities of output that can be obtained from different quantities of a variable input,assuming other inputs are fixed. A)total input B)marginal input C)total product D)average total quantity

A total product curve indicates the relationship between _____ when all other inputs are fixed. A)a variable input and price B)a variable input and variable cost C)a variable input and output D)output and price

The marginal product of labor is the: A)change in labor divided by the change in total product. B)slope of the total product of labor curve. C)change in average product divided by the change in the quantity of labor. D)change in output that occurs when capital increases by one unit.

A farm can produce 1,000 bushels of wheat per year with two workers and 1,300 bushels of wheat per year with three workers.The marginal product of the third worker is _____ bushels. A)100 B)300 C)1,300 D)2,300

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 60,and when she hires four workers,total product is 65.The slope of the marginal product curve between two and four workers hired is: A)positive. B)zero. C)infinite. D)negative.

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 60,and when she hires four workers,total product is 75.The slope of the marginal product curve between two and four workers hired is: A)positive. B)negative. C)infinite. D)zero.

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 48,and when she hires four workers,total product is 45.The marginal product of the third and fourth workers is: A)increasing and positive. B)increasing and negative. C)decreasing and positive. D)decreasing and negative.

Use the following to answer questions 30-32: -(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.The marginal product of the second worker is _____ units per period. A)10 B)15 C)20 D)30

Use the following to answer questions 30-32: -(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.The marginal product of the fourth worker is _____ units per period. A)20 B)22.5 C)50 D)90

Use the following to answer questions 30-32: -(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.Negative marginal returns begin when the _____ worker is added. A)fifth B)sixth C)seventh D)eighth

Use the following to answer questions 33-39: -(Figure: The Total Product)Use Figure: The Total Product.Between points A and B the marginal product of labor is: A)increasing. B)zero. C)decreasing. D)infinite.

Use the following to answer questions 33-39: -(Figure: The Total Product)Use Figure: The Total Product.Labor added from L₁ and up to L₂ is: A)subject to diminishing marginal returns. B)adding to total product at an increasing rate. C)adding nothing to total product. D)adding to total product at a constant rate.

Use the following to answer questions 33-39: -(Figure: The Total Product)Use Figure: The Total Product.As labor is hired between L₁ and L₂,the total product is _____ and the marginal product is _____. A)increasing;positive B)decreasing;zero C)increasing;negative D)increasing;zero

Use the following to answer questions 33-39: -(Figure: The Total Product)Use Figure: The Total Product.For hiring labor between zero and L₁,the: A)marginal product of labor is increasing. B)marginal product of labor is decreasing. C)total product is increasing at a diminishing rate. D)total product is decreasing.

Use the following to answer questions 33-39: -(Figure: The Total Product)Use Figure: The Total Product.After hiring L₂ labor and producing at point B on the total product curve,hiring more labor beyond L₂ would cause the: A)marginal product of labor to rise. B)marginal product of labor to be negative. C)total product to be negative. D)total product to be zero.

Use the following to answer questions 33-39: -(Figure: The Total Product)Use Figure: The Total Product.When L₂ labor is hired,the total product is at a _____ and the marginal product of labor is _____. A)minimum;zero B)maximum;zero C)maximum;positive D)minimum;positive but falling

Use the following to answer questions 33-39: -(Figure: The Total Product)Use Figure: The Total Product.If the firm hires more than L₂ labor,the total product will _____ because the marginal product of labor is _____. A)decrease;positive B)increase;positive C)decrease;negative D)increase;negative

When an additional unit of a variable input adds less to total product than the previous unit,the firm has: A)increasing returns. B)diminishing marginal returns. C)diminishing total returns. D)diminishing marginal returns and diminishing total returns.

Diminishing marginal returns occur when: A)each additional unit of a variable factor adds more to total output than the previous unit. B)each additional unit of a variable factor adds less to total output than the previous unit. C)the marginal product of a variable factor is increasing at a decreasing rate. D)total product decreases.

You own a deli.Which input of production is MOST likely fixed at your deli? A)the dining room B)the bread used to make sandwiches C)the tomato sauce used to make soups D)the employees

You own a deli.Which decision is most likely to be made in the LONG run at your deli? A)You order more breadsticks. B)You order more soft drinks for next week. C)You renovate the second floor of your building to increase the size of the dining room. D)You advertise for part-time workers.

Once diminishing returns have set in,as output increases,the total cost curve: A)gets steeper. B)gets flatter. C)becomes horizontal. D)increases at first,and then decreases.

The total cost curve gets steeper as output increases because of: A)increasing returns to the variable input. B)decreasing returns to the variable input. C)increases in fixed cost. D)decreases in overhead costs.

The change in total output resulting from a one-unit increase in the quantity of an input used,holding the quantities of all other inputs constant,is: A)average cost. B)average product. C)marginal cost. D)marginal product.

Austin's total fixed cost at the bakery is $3,600 a month.Austin employs 20 workers and pays each worker $8 an hour.The marginal product of the twentieth worker is 12 iced cupcakes an hour.What is the marginal cost of the last cupcake produced by the last worker Austin hired? A)$0.26 B)$0.66 C)$3.81 D)$8.00

For Heidi,the marginal cost of producing one additional photograph equals the change in _____ cost divided by the change in the _____ of photographs. A)total;number B)marginal;number C)total;marginal product D)average;number

When a cherry orchard in Oregon adds a worker,the total cost of production increases by $24,000.Adding the worker increases total cherry output by 600 pounds.Therefore,the marginal cost of the last pound of cherries produced is: A)$40. B)$19. C)$4,000. D)$24,000.

Marginal cost CANNOT be calculated as: A)TC/Q,where TC is total cost and Q is output. B)VC/Q,where VC is variable cost and Q is output. C)the slope of the total cost curve. D)ATC * Q,where ATC is average total cost and Q is output.

If the marginal cost of producing the seventh sports jersey is $21,then the total cost of seven sports jerseys is: A)$21. B)$60. C)$147. D)The answer cannot be determined from the information provided.

If Marie Marionettes is operating under conditions of diminishing marginal product,the marginal costs will be: A)equal to average total cost. B)decreasing. C)increasing. D)constant.

Buford Bus Manufacturing installs a new assembly line.As a result,the output per worker increases.The marginal cost of output at Buford: A)will increase (the MC curve will shift up). B)will decrease (the MC curve will shift down). C)will be unchanged. D)is at its maximum.

If the marginal cost of the first sports jersey is $21,the marginal cost of the second sports jersey is $40,and the marginal cost of the third jersey is $17,what is the total variable cost of producing three jerseys? A)$26 B)$78 C)$17 D)$61

The shape of the marginal cost curve is the mirror image of the shape of the _____ curve. A)total product B)average product C)marginal product D)average total cost

Ashley Bakery expects its marginal cost curve will eventually slope upward because,as with most production processes,baking has: A)constant opportunity costs. B)a maximum output. C)diminishing marginal returns. D)decreasing opportunity costs.

The _____ curve shows the additional cost of producing each additional unit of output. A)average cost B)total cost C)marginal product D)marginal cost

Marginal cost is the change in _____ cost resulting from a one-unit change in _____. A)total;a variable input B)total;output C)total;average cost D)average;output

A firm's marginal cost is: A)the ratio of the change in total cost to the change in the quantity of output. B)the change in total cost divided by the change in labor input. C)the slope of the average fixed cost curve. D)total cost divided by output.

Marginal cost _____ over the range of increasing marginal returns and _____ over the range of diminishing marginal returns. A)increases;decreases B)decreases;increases C)is constant;decreases D)increases;is constant

Which statement is FALSE? A)When the marginal product of labor is upward sloping,the marginal cost curve is upward sloping. B)The average fixed cost curve is downward sloping and approaches the horizontal axis as output increases. C)The marginal cost curve intersects the average variable cost curve at the minimum of average variable cost. D)When the marginal cost curve is above the average cost curve,the average cost curve is upward sloping.

The curve that shows the additional cost of each additional unit of output is called the _____ curve. A)average cost B)total cost C)marginal product D)marginal cost

Marginal cost is the change in: A)total product resulting from a one-unit change in a variable input. B)total cost resulting from a one-unit change in quantity of a variable input. C)total cost divided by the change in output. D)average cost resulting from a one-unit change in quantity of output.

The change in total cost resulting from a one-unit change in quantity is _____ cost. A)average fixed B)average variable C)marginal D)average total

A firm's marginal cost is the: A)ratio of the change in fixed cost to the change in the quantity of output. B)slope of the total cost curve. C)slope of the average variable cost curve. D)ratio of the change in total output to the change in the quantity of labor.

Marginal cost is the: A)increase in total cost when one more unit of output is produced. B)reduction in cost from economies of scale. C)ratio of average total cost to total cost. D)increase in output from the addition of one unit of labor.

The larger the output,the more output over which fixed cost is distributed.Called the _____ effect,this leads to a _____ average _____ cost as output rises. A)spreading;lower;fixed B)spreading;higher;fixed C)diminishing returns;lower;variable D)diminishing returns;higher;variable

The larger the output,the more variable input required to produce additional units.Called the _____ effect,this leads to a _____ average _____ cost as output rises. A)spreading;lower;fixed B)spreading;higher;fixed C)diminishing returns;lower;variable D)diminishing returns;higher;variable

The average total cost curve has a shape because the _____ effect is dominant at low levels of output,and the _____ effect is dominant at high levels of output. A)diminishing returns;spreading B)spreading;diminishing returns C)comparative advantage;absolute advantage D)absolute advantage;comparative advantage

The rent for Oscar's sporting goods store is $2,500 per month.Oscar pays his staff $9 per hour,and his monthly electricity bill averages $700,depending on his total hours of operation.Oscar's fixed costs of production equal: A)$2,500 per month. B)$3,200 per month. C)$9 per hour multiplied by total hours of work plus $700. D)$9 per hour multiplied by total hours of work plus $3,200.

Krista's dry-cleaning business incurs $900 per month in fixed costs.Last month her total output was 3,000 pounds of clothes.This month her total output fell to 2,700 pounds.This means her average fixed cost _____ by a little more than _____ cents. A)fell;3.33 B)increased;3.33 C)fell;2.50 D)increased;2.50

Darren runs a barbershop with average fixed costs of $60 per day and a total output of 50 haircuts per day.Darren shuts down every year during the last week of July and the first week of August (meaning it is open 50 weeks a year).What is his annual fixed cost if he is open six days per week? A)$18,000 B)$3,000 C)$60 D)The answer cannot be determined with the information available.

The average total cost of producing cell phones in a factory is $20 at the current output level of 100 units per week.If the fixed cost is $1,200 per week: A)average fixed cost is $20. B)total cost is $3,200. C)variable cost is $2,000. D)average variable cost is $8.

Average variable cost does NOT equal: A)variable cost divided by output. B)total cost minus fixed cost divided by output. C)average total cost minus average fixed cost. D)variable cost times output.

You run a business producing picture frames.This month,your total cost of production is $10,000,your variable cost of production is $6,000,and you produce 3,000 picture frames.It follows that average _____ cost is _____. A)variable;$2 B)total;$3 C)total;$1 D)fixed;$1

For most restaurants,the average total cost curve _____ at _____ levels of output,then _____ at _____ levels. A)falls;low;rises;high B)rises;low;falls;high C)rises;high;rises;low D)falls;high;falls;low

In the short run,the average total cost curve slopes upward because of: A)economies of scale. B)diseconomies of scale. C)increasing returns. D)diminishing returns.

The _____ cost curve is NOT affected by diminishing returns. A)average fixed B)average variable C)average total D)marginal

The _____ cost curve continually declines as more output is produced in the short run. A)marginal B)average variable C)average fixed D)average total

Use the following to answer questions 122-124: -(Figure: The Average Total Cost Curve)Use Figure: The Average Total Cost Curve.The total cost of producing three pairs of boots is approximately: A)$24. B)$72. C)$75. D)$216.

Use the following to answer questions 122-124: -(Figure: The Average Total Cost Curve)Use Figure: The Average Total Cost Curve.The total cost of producing five pairs of boots is approximately: A)$408. B)$82. C)$108. D)$17.

Use the following to answer questions 122-124: -(Figure: The Average Total Cost Curve)Use Figure: The Average Total Cost Curve.The total cost of producing 10 pairs of boots is approximately: A)$13. B)$54. C)$131. D)$1,308.

Average total cost is: A)the change in cost divided by the change in output. B)total cost divided by output. C)the change in output divided by the change in costs. D)total cost times output.

Total cost divided by the quantity of output produced is: A)average total cost. B)average fixed cost. C)average product. D)marginal cost.

Average variable cost is: A)variable cost per unit multiplied by output. B)total variable cost divided by output. C)the difference between average total cost and total variable cost. D)the difference between total cost and total variable cost.

Average variable cost is the ratio of: A)total cost to marginal cost. B)total cost to the amount of variable input. C)variable cost to the quantity of output. D)marginal cost to the quantity of output.

A business produces 10 pairs of eyeglasses.It incurs $30 in average variable cost and $5 in average fixed cost.The average total cost of producing 10 pairs of eyeglasses is: A)$30. B)$35. C)$50. D)$300.

A business produces 10 pairs of eyeglasses.It incurs $35 in average total cost and $5 in average fixed cost.The average variable cost of producing 10 pairs of eyeglasses is: A)$30. B)$35. C)$50. D)$300.

A business produces 10 pairs of eyeglasses.It incurs $30 in average variable cost and $5 in average fixed cost.The total cost of producing 10 pairs of eyeglasses is: A)$35. B)$50. C)$300. D)$350.

A business produces 10 pairs of eyeglasses.It incurs $30 in average variable cost and $35 in average total cost.The total fixed cost of producing 10 pairs of eyeglasses is: A)$3. B)$35. C)$50. D)$300.

Average total cost is: A)the change in variable cost divided by the change in quantity. B)total cost divided by quantity. C)the change in quantity divided by the change in labor costs. D)total cost times quantity.

Average variable cost is: A)variable cost per unit multiplied by quantity. B)total variable cost divided by quantity. C)the difference between average total cost and total cost. D)the difference between total cost and total fixed cost.

Average total cost is the ratio of _____ cost to _____. A)total;marginal cost B)total;quantity of output C)total;amount of variable input D)marginal;amount of variable input

Total cost divided by the quantity of output produced is: A)always increasing. B)always decreasing. C)average total cost. D)marginal cost.

Average variable cost is the ratio of: A)total cost to the marginal cost. B)variable inputs to fixed inputs. C)variable cost to the quantity of output. D)fixed costs to variable cost.

Variable cost divided by the quantity of output produced is _____ cost. A)marginal B)average total C)average fixed D)average variable

Tankao makes earbuds for mobile devices.When Tankao produces 20 sets of earbuds,its average variable cost is $5 per set and its average total cost is $8 per set.Tankao's: A)marginal cost is less than $3 per set. B)marginal cost is $3 per set. C)average fixed cost is $3 per set. D)marginal cost is equal to its average fixed cost.

Tankao makes Bluetooth headphones for mobile devices.When 50 Bluetooth headphones are produced in the short run,the average variable cost is $30.Fixed costs are greater than zero.Therefore,Tankao's average _____ cost is _____. A)total;$30. B)total;greater than $30. C)total;less than $30. D)fixed;$30.

Austin's total fixed cost is $3,600 a month for making 100,000 cupcakes at his cupcake bakery.Austin employs 20 workers and pays each worker $600 a month.If labor is his only variable cost,what is Austin's total cost per month for making 100,000 cupcakes? A)$3,600 B)$1,200 C)$15,600 D)$12,000

When marginal cost is rising: A)average variable cost must be rising. B)average total cost must be rising. C)average variable cost and average total cost must be falling. D)both average variable cost and average total cost may be rising or falling.

When Aishe's Bar-B-Que produces 10 pork sandwiches,the total cost is $5.When 11 pork sandwiches are produced,the total cost rises to $6.From this we know that the marginal cost of the eleventh pork sandwich: A)is equal to the average cost of 11 pork sandwiches. B)is greater than the average cost of 11 pork sandwiches. C)is less than the average cost of 11 pork sandwiches. D)can't be calculated without more information.

Suppose the marginal cost curve in the short run first decreases and then increases.If marginal cost is decreasing,_____ must be _____ and _____ must be _____. A)marginal product;increasing;average fixed cost;zero B)average variable cost;decreasing;average fixed cost;increasing C)average total cost;increasing;marginal cost;decreasing D)marginal product;increasing;average variable cost;decreasing

Suppose the marginal cost curve in the short run first decreases and then increases.If marginal cost is increasing,_____ must be _____. A)marginal product;increasing B)average variable cost;increasing C)average total cost;increasing D)marginal product;decreasing

At the current level of output,Becca Furniture's marginal cost curve is above the average total cost curve.This means Becca Furniture's average total cost curve: A)must be rising. B)must be flat. C)must be falling. D)may be rising,falling,or flat depending on other things.

The marginal cost curve intersects the average variable cost curve at: A)its lowest point. B)its maximum. C)its end point. D)no point;the curves don't intersect.

When marginal cost is BELOW average variable cost,average variable cost must be: A)at its minimum. B)at its maximum. C)falling. D)rising.

When marginal cost is ABOVE average variable cost,average variable cost must be: A)at its minimum. B)at its maximum. C)falling. D)rising.

If marginal cost is GREATER than average total cost: A)average total cost is increasing. B)average total cost is decreasing. C)average total cost is unchanged. D)marginal cost is decreasing.

In general,if marginal cost is EQUAL to average total cost: A)average total cost is increasing. B)average total cost is at its maximum. C)average total cost is at its minimum. D)marginal cost is decreasing.

If an increase in output results in a DECREASE in average total cost,the corresponding marginal cost is: A)less than average total cost. B)greater than average total cost. C)equal to average total cost. D)negative.

When a caterer produces 30 catered meals,its marginal cost and average variable cost each equal $10.Therefore,assuming normally shaped cost curves,at 29 meals its marginal cost is _____ $10 and its average variable cost is _____ $10. A)greater than;less than B)less than;greater than C)greater than;greater than D)equal to;equal to

When marginal cost is BELOW average variable cost,average variable cost must be: A)above average total cost. B)below average fixed cost. C)falling. D)rising.

When marginal cost is ABOVE average variable cost,average variable cost must be: A)at its minimum. B)at its maximum. C)greater than average total cost. D)rising.

If marginal cost is GREATER than average total cost,then average total cost is: A)at its maximum. B)at its minimum. C)rising. D)falling.

If marginal cost is LESS than average total cost,then _____ cost is _____. A)average total;increasing B)average total;decreasing C)marginal;necessarily increasing D)marginal;necessarily decreasing

Suppose Cyd knows the average total cost of producing 9 scones is $5,while the average total cost of producing 10 scones is $5.20.What is the marginal cost of the tenth scone? A)$7.00 B)$5.20 C)$0.20 D)$5.00

Use the following to answer question 159: -(Table: Output and Marginal Cost)Use Table: Output and Marginal Cost.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.How many statues should you produce to minimize your average variable costs? A)two B)three C)four D)five

Kaile Cakes produces 10 cakes per day.The marginal cost of the tenth cake is $24,and average total cost of 10 cakes is $6.The average total cost of 9 cakes is: A)$4. B)$5. C)$6. D)$8.

Cindy operates Birds-R-Us,a small store manufacturing and selling 100 bird feeders per month.Cindy's monthly total fixed costs are $500,and her monthly total variable costs are $2,500.If for some reason Cindy's fixed cost fell to $400,then her _____ costs would _____. A)average fixed;increase B)average total;decrease C)marginal;decrease D)average variable;decrease

In the short run,as output gets larger: A)fixed cost gets smaller. B)the average variable cost curve gets closer to the average total cost curve. C)marginal cost gets smaller. D)average total cost decreases after the point of diminishing returns.

Use the following to answer questions 163-167: -(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 19 to 36 bushels of wheat is: A)$23.53. B)$11.76. C)$22.22. D)$11.11.

Use the following to answer questions 163-167: -(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 51 to 64 bushels of wheat is: A)$16.00. B)$15.38. C)$12.50. D)$18.75.

Use the following to answer questions 163-167: -(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 84 to 91 bushels of wheat is: A)$13.00. B)$19.78. C)$22.22. D)$28.57.

Use the following to answer questions 163-167: -(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.When 51 bushels of wheat is produced,the average fixed cost is _____,average variable cost is _____,and average total cost is _____. A)$7.84;$11.76;$19.60 B)$133.33;$200.00;$333.33 C)$400.00;$600.00;$1,000.00 D)$5.33;$13.33;$18.67

Use the following to answer questions 163-167: -(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.When 96 bushels of wheat is produced,the average fixed cost is _____,average variable cost is _____,and average total cost is _____. A)$7.84;$11.76;$19.60 B)$133.33;$200.00;$333.33 C)$4.17;$16.67;$20.83 D)$5.33;$13.33;$18.67

Use the following to answer questions 168-171: -(Figure: Short-Run Costs)Use Figure: Short-Run Costs.A is the _____ cost curve. A)average total B)average variable C)marginal D)total

Use the following to answer questions 168-171: -(Figure: Short-Run Costs)Use Figure: Short-Run Costs.B is the _____ cost curve. A)average total B)average variable C)marginal D)total

Use the following to answer questions 168-171: -(Figure: Short-Run Costs)Use Figure: Short-Run Costs.C is the _____ cost curve. A)average total B)total C)marginal D)average variable

Use the following to answer questions 168-171: -(Figure: Short-Run Costs)Use Figure: Short-Run Costs.The vertical difference between curve B and curve C at any quantity of output is _____ cost. A)marginal B)fixed C)average fixed D)average variable

Use the following to answer questions 172-179: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 is the _____ cost curve. A)average total B)average variable C)marginal D)total

Use the following to answer questions 172-179: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 2 is the _____ cost curve. A)average total B)average variable C)marginal D)total

Use the following to answer questions 172-179: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 3 is the _____ cost curve. A)average total B)total C)marginal D)average variable

Use the following to answer questions 172-179: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 crosses the average variable cost curve at: A)3 units of output. B)approximately 5.3 units of output. C)the minimum value of curve 2. D)the level of output at which diminishing marginal returns begin.

Use the following to answer questions 172-179: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 crosses the average total cost curve at: A)the minimum value of curve 2. B)approximately 4.3 units of output. C)approximately 2.8 units of output. D)point A.

Use the following to answer questions 172-179: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.At 6 units of output,marginal cost is approximately: A)$100. B)$120. C)$250. D)$200.

Use the following to answer questions 172-179: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.At 6 units of output,average total cost is approximately: A)$100. B)$120. C)$170. D)$250.

Use the following to answer questions 172-179: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.At 6 units of output,average variable cost is approximately: A)$100. B)$120. C)$200. D)$250.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.When the purse factory produces 5 units of output (purses): A)marginal cost is above average total cost,and average total cost is rising. B)average total cost is above average variable cost,and average variable cost is falling. C)marginal cost is below average variable cost,and average variable cost is falling. D)marginal cost is above average variable cost and below average total cost,and average total cost is rising.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average variable cost of producing 2 purses is: A)$190. B)$70. C)$50. D)$35.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average fixed cost of producing 2 purses is: A)$0. B)$50. C)$25. D)$2.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 2 purses is: A)$60. B)$120. C)$190. D)$220.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the second purse is: A)$60. B)$50. C)$35. D)$20.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average variable cost of producing 4 purses is: A)$190.00. B)$140.00. C)$47.50. D)$35.00.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average fixed cost of producing 4 purses is: A)$12.50. B)$47.50. C)$50.00. D)$82.50.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 4 purses is: A)$12.50. B)$47.50. C)$50.00. D)$82.50.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the fourth purse is: A)$60. B)$50. C)$40. D)$20.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 6 purses is: A)$190. B)$70. C)$50. D)$35.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average fixed cost of producing 5 purses is: A)$0. B)$50. C)$25. D)$10.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average variable cost of producing 5 purses is: A)$10. B)$38. C)$48. D)$190.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 5 purses is: A)$10. B)$38. C)$48. D)$240.

Use the following to answer questions 180-193: -(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the fifth purse is: A)$60. B)$50. C)$35. D)$20.

Use the following to answer questions 194-196: -(Figure: A Firm's Cost Curves)Use Figure: A Firm's Cost Curves.The curve labeled V represents the firm's _____ cost curve. A)total B)average total C)marginal D)average variable

Use the following to answer questions 194-196: -(Figure: A Firm's Cost Curves)Use Figure: A Firm's Cost Curves.The curve labeled W represents the firm's _____ cost curve. A)average fixed B)average total C)average variable D)total variable

Use the following to answer questions 194-196: -(Figure: A Firm's Cost Curves)Use Figure: A Firm's Cost Curves.The curve X represents the firm's _____ cost curve. A)marginal B)average total C)average fixed D)average variable

The long-run average total cost curve is tangent to an infinite number of short-run _____ cost curves. A)total B)marginal C)average variable D)average total

Where the long-run average total cost curve is at its lowest point,it is tangent to the _____ of the corresponding short-run average total cost curve. A)minimum B)maximum C)right of the minimum D)left of the minimum

At quantities less than the long-run minimum cost per unit of output,the long-run average total cost curve is _____ of the corresponding short-run average total cost curve. A)tangent to the minimum B)tangent to the maximum C)to the right of the minimum D)to the left of the minimum

At quantities greater than the long-run minimum cost per unit of output,the long-run average total cost curve is _____ of the corresponding short-run average total cost curve. A)tangent to the minimum B)tangent to the maximum C)to the right of the minimum D)to the left of the minimum

(Figure: Long-Run and Short-Run Average Cost Curves)Use Figure: Long-Run and Short-Run Average Cost Curves.If a firm faced the long-run average total cost curve shown in the figure and it expected to produce 100,000 units of the good in the long run,the firm should build the plant associated with: Ref 11-18 Figure: Long-Run and Short-Run Average Cost Curves A)ATC₁. B)ATC₂. C)ATC₃. D)ATC₁ or ATC₂.

(Figure: Long-Run and Short-Run Average Cost Curves)Use Figure: Long-Run and Short-Run Average Cost Curves.If a firm is producing at point C on the ATC₂ but anticipates increasing output to 225,000 units in the long run,the firm will build a _____ plant and have _____ of scale. A)smaller;economies B)smaller;diseconomies C)bigger;economies D)bigger;diseconomies

In the long run,all costs are: A)fixed. B)constant. C)variable. D)marginal.

In the long run: A)all factors are fixed. B)all factors are variable. C)production choices are more limited than in the short run. D)production is always greater than zero.

When a firm adds physical capital,in the short run fixed costs will: A)increase. B)decrease. C)remain the same. D)decrease at first and then increase.

When a firm adds capital,in the short run workers will be: A)less productive and let the machines do most of the work. B)more productive,since they have more equipment. C)at the same level of productivity. D)more productive at first and then less productive after a few weeks.

When a firm adds capital,in the short run variable costs for any level of output will: A)increase. B)decrease. C)remain the same. D)increase at first and then decrease.

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer and bakes 100 cakes per day,what is her average fixed cost? A)$10,000 B)$1,000 C)$15 D)$10

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer and bakes 100 cakes per day,what is her average total cost? A)$1,010 B)$20 C)$15 D)$10

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer and bakes 200 cakes per day,what is her average fixed cost? A)$5 B)$10 C)$200 D)$1,000

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer and bakes 200 cakes per day,what is her average total cost? A)$5 B)$15 C)$200 D)$1,000

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer and bakes 400 cakes per day,what is her average fixed cost? A)$0.025 B)$2.50 C)$1,000 D)$400,000

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer and bakes 400 cakes per day,what is her average total cost? A)$2.50 B)$10 C)$12.50 D)$1,010

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer,her average fixed cost _____ in the range of output between 100 and 400 cakes. A)increases B)decreases C)remains the same D)can't be calculated

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer,her average total cost _____ in the range of output between 100 and 400 cakes. A)increases B)decreases C)remains the same D)can't be calculated

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers and bakes 100 cakes per day,what is her average fixed cost? A)$10,000 B)$1,000 C)$15 D)$10

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers and bakes 100 cakes per day,what is her average total cost? A)$8 B)$10 C)$15 D)$22

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers and bakes 200 cakes per day,what is her average fixed cost? A)$300,000 B)$1,508 C)$187.50 D)$7.50

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers and bakes 200 cakes per day,what is her average total cost? A)$8 B)$14.50 C)$1,492 D)$1,508

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers and bakes 400 cakes per day,what is her average fixed cost? A)$0.02 B)$3.75 C)$500 D)$1,508

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers and bakes 400 cakes per day,what is her average total cost? A)$0.02 B)$10.75 C)$500 D)$1,507

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers,her average fixed cost _____ in the range of output between 100 and 400 cakes. A)increases B)decreases C)remains the same D)can't be calculated

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers,her average total cost _____ in the range of output between 100 and 400 cakes. A)increases B)decreases C)remains the same D)can't be calculated

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 100 cakes per day,what is her average fixed cost? A)$4 B)$25 C)$2,496 D)$10,000

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 100 cakes per day,what is her average total cost? A)$4 B)$25 C)$29 D)$625

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 200 cakes per day,what is her average fixed cost? A)$0.05 B)$2.50 C)$5.00 D)$12.50

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 200 cakes per day,what is her average total cost? A)$50.00 B)$12.50 C)$16.50 D)$800.00

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 400 cakes per day,what is her average fixed cost? A)$0.05 B)$2.50 C)$5.00 D)$6.25

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 400 cakes per day,what is her average total cost? A)$10.25 B)$12.50 C)$16.50 D)$2,504.00

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers,her average fixed cost _____ in the range of output between 100 and 400 cakes. A)increases B)decreases C)remains the same D)can't be calculated

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers,her average total cost _____ in the range of output between 100 and 400 cakes. A)increases B)decreases C)remains the same D)can't be calculated

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.How many mixers should Pat buy to get the lowest average total cost if she plans to make 100 cakes? A)1 B)2 C)3 D)Can't be determined without more information

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.How many mixers should Pat buy to get the lowest average total cost if she plans to make 200 cakes? A)1 B)2 C)3 D)Can't be determined without more information

Use the following to answer questions 208-234: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.How many mixers should Pat buy to get the lowest average total cost if she plans to make 400 cakes? A)1 B)2 C)3 D)Can't be determined without more information

The long-run average cost curve will be upward-sloping when the firm has: A)economies of scale. B)diseconomies of scale. C)constant returns to scale. D)diminishing returns.

Use the following to answer question 236: -(Table: Long-Run Total Cost)Use Table: Long-Run Total Cost.This soybean grower receives constant returns to scale over the _____ and _____ bushels. A)first;second B)third;fourth C)fourth;fifth D)fifth;sixth

When an increase in the firm's output reduces its long-run average total cost,it achieves _____ scale. A)economies of B)diseconomies of C)constant returns to D)variable returns to

A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with: A)economies of scale. B)diseconomies of scale. C)increasing opportunity costs. D)scale reduction.

The slope of a long-run average total cost curve exhibiting diseconomies of scale is: A)zero. B)infinite. C)positive. D)negative.

When diseconomies of scale occur: A)long-run average cost rises. B)marginal cost declines. C)average total cost declines. D)average variable cost declines.

Use the following to answer questions 241-245: -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A. A)diseconomies of scale B)constant returns to scale C)economies of scale D)negative costs of production

Use the following to answer questions 241-245: -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from A to B. A)constant returns to scale B)economies of scale C)diseconomies of scale D)constant total cost as output increases

Use the following to answer questions 241-245: -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from B to C. A)constant returns to scale B)diseconomies of scale C)economies of scale D)falling marginal cost

Use the following to answer questions 241-245: -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A. A)decreasing returns to scale B)constant returns to scale C)increasing returns to scale D)negative costs of production

Use the following to answer questions 241-245: -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from B to C. A)constant returns to scale B)decreasing returns to scale C)increasing returns to scale D)falling marginal cost

A firm that is able to use its inputs more efficiently as it increases production in the long run BEST demonstrates: A)economies of scale. B)diseconomies of scale. C)labor-intensive production. D)capital-intensive production.

A firm that has diminishing returns in the management's ability to use and disseminate information as it increases production in the long run BEST demonstrates: A)economies of scale. B)diseconomies of scale. C)being too small for the relevant market. D)not having enough managers.

It is common in large breweries for the long-run average total cost to decline as output increases.This indicates that many breweries operate with: A)diseconomies of scale. B)diminishing marginal returns. C)economies of scale. D)constant returns to scale.

Buffalo Aircraft doubles the amount of all of the inputs it uses-the factory doubles in size and twice as many workers are hired.After this expansion,the number of aircraft produced triples.If the price of inputs is unchanged,this means that Buffalo Aircraft is operating with: A)increasing marginal cost. B)economies of scale. C)increasing average total cost. D)decreasing average variable cost.

The long-run average total cost of producing 100 units of output is $4,while the long-run average cost of producing 110 units of output is $4.These numbers suggest that between 100 and 110 units of output,the firm producing this output has: A)economies of scale. B)diseconomies of scale. C)constant returns to scale. D)diminishing returns.

The -shape of the long-run average total cost curve is primarily due to: A)technological change. B)economies and diseconomies of scale. C)fixed costs. D)diminishing returns.

When an increase in the firm's output reduces its long-run average total cost,it has _____ returns to scale. A)increasing B)decreasing C)constant D)variable

If your firm is operating in the negatively sloped portion of a long-run average total cost curve,then your production exhibits: A)higher wages. B)increasing returns to scale. C)decreasing returns to scale. D)increased input prices.

A manufacturing company that benefits from lower costs per unit as it grows is an example of a firm exhibiting: A)increasing returns to scale. B)decreasing returns to scale. C)increasing opportunity costs. D)scale reduction.

A firm that has lower costs per unit as it increases production in the long run has: A)increasing returns to scale. B)decreasing returns to scale. C)increasing opportunity costs. D)scale reduction.

The slope of a long-run average total cost curve exhibiting decreasing returns to scale is: A)zero. B)infinite. C)positive. D)negative.

Decreasing and increasing returns to scale account for the shape of the: A)short-run average total cost curve. B)short-run average variable cost curve. C)long-run average total cost curve. D)marginal cost curve in both the short run and the long run.

The slope of a long-run average total cost curve exhibiting increasing returns to scale is: A)zero. B)infinite. C)positive. D)negative.

Use the following to answer questions 259-266: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The fixed cost of producing 25 statues is: A)$10. B)$20. C)$25. D)$35.

Use the following to answer questions 259-266: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The variable cost of producing 25 statues is: A)$10. B)$20. C)$25. D)$35.

Use the following to answer questions 259-266: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The total cost of producing 25 statues is: A)$10. B)$20. C)$25. D)$30.

Use the following to answer questions 259-266: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The variable cost of producing 43 statues is: A)$10. B)$20. C)$40. D)$43.

Use the following to answer questions 259-266: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The total cost of producing 43 statues is: A)$10. B)$20. C)$40. D)$50.

Use the following to answer questions 259-266: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The variable cost of producing 48 statues is: A)$50. B)$48. C)$20. D)$10.

Use the following to answer questions 259-266: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The total cost of producing 48 statues is: A)$240. B)$60. C)$50. D)$10.

Use the following to answer questions 259-266: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.How many workers should you hire to minimize your marginal cost? A)two B)three C)four D)five

Use the following to answer questions 259-266: -(Table: Output and Costs)Use Table: Output and Costs.When output increases from 1 to 2,marginal cost equals: A)$13. B)$10. C)$8. D)$17.

Use the following to answer questions 259-266: -(Table: Output and Costs)Use Table: Output and Costs.When output is 4,total variable cost equals: A)$48. B)$38. C)$58. D)$28.

Use the following to answer questions 259-266: -(Table: Output and Costs)Use Table: Output and Costs.When output is 3,average total cost equals: A)$13. B)$10. C)$8. D)$17.

Use the following to answer questions 270-273: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The total cost of producing 6 bagels is: A)$0.10. B)$0.20. C)$0.80. D)$0.90.

Use the following to answer questions 270-273: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The marginal cost of producing the sixth bagel is: A)$0.10. B)$0.15. C)$0.20. D)$0.80.

Use the following to answer questions 270-273: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.Marginal cost reaches its minimum value for the _____ bagel. A)first B)third C)fourth D)fifth

Use the following to answer questions 270-273: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.Average total cost reaches its minimum value for the _____ bagel. A)first B)third C)fourth D)fifth

Use the following to answer questions 270-273: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The average total cost of producing 6 bagels is: A)$0.10. B)$0.15. C)$0.20. D)$0.80.

Use the following to answer questions 270-273: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The total cost of producing 2 bagels is: A)$0.10. B)$0.20. C)$0.40. D)$0.50.

Use the following to answer questions 270-273: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The average total cost of producing 2 bagels is: A)$0.05. B)$0.10. C)$0.20. D)$0.40.

Use the following to answer questions 270-273: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The marginal cost of producing the second bagel is: A)$0.05. B)$0.10. C)$0.30. D)$0.40.

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average variable cost of 2 cakes? A)$40.00 B)$35.00 C)$25.00 D)$12.50

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average fixed cost of 2 cakes? A)$5 B)$10 C)$25 D)$30

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average total cost of 2 cakes? A)$35.00 B)$25.00 C)$17.50 D)$12.50

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the marginal cost of the second cake? A)$5 B)$10 C)$25 D)$35

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average variable cost of 4 cakes? A)$38.00 B)$10.00 C)$9.50 D)$8.00

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average fixed cost of 4 cakes? A)$48.00 B)$10.00 C)$5.00 D)$2.50

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average total cost of 4 cakes? A)$35.00 B)$25.00 C)$9.50 D)$12.00

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the marginal cost of the fourth cake? A)$8 B)$10 C)$25 D)$35

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average variable cost of 5 cakes? A)$300 B)$250 C)$50 D)$10

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average fixed cost of 5 cakes? A)$1 B)$2 C)$5 D)$10

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average total cost of 5 cakes? A)$110 B)$60 C)$12 D)$2

Use the following to answer questions 278-292: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the marginal cost of the fifth cake? A)$2 B)$10 C)$12 D)$20

Farmers in the United States grow about three times as much wheat per acre as do farmers in Western Europe.

Scott operates a business that takes people on boat tours in Crystal River,Florida.The amount of fuel Scott uses each day is a variable input.

In the long run,every input available to a manufacturer is a fixed input.

Joan adds one more employee to her construction company.The additional output produced by this employee represents the average product of this employee.

The total product curve for the Wallmark Greeting Card Company shows how the quantity of output depends on the quantity of the variable input for a given amount of the fixed inputs.

The slope of the total product curve is equal to the average product of labor.

As more labor is added to a fixed amount of capital,eventually the marginal product of labor decreases.

When returns are diminishing,the marginal cost curve is upward-sloping.

As a firm increases production in the short run,the marginal cost of output increases because the marginal product of the variable input decreases.

The short-run average total cost curve is U-shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect,while at high output levels the reverse is true.

In the short run,and with nonzero fixed costs,the average total cost curve always lies above the average variable cost curve.

If the average total cost curve and the average variable cost curve are both U-shaped,and fixed costs are nonzero,then the minimum point of the average total cost curve must lie above the minimum point of the average variable cost curve.

If average total cost is declining,marginal cost cannot be increasing.

In the short run,if marginal cost is higher than average total cost,producing an extra unit of output must raise average total cost.

In the short run,the average total cost curve reaches its minimum point at a lower level of output than the short-run marginal cost curve reaches its minimum.

In some complex production processes,such as nuclear power plants,some inputs have to be treated as being fixed even in the long run.

In the long run,some of a firm's costs are fixed,while others are variable.

Firms choose their level of fixed cost in the long run based on the amount of output that they expect to produce.

When a firm adds physical capital,its fixed cost will decrease in the short run.

When a firm adds physical capital,labor will become more productive in the short run.

When a firm adds physical capital,its variable cost will decrease in the long run.

The long run is the period during which fixed costs do not change.

In the long run,when a firm adds physical capital,workers become more productive,so variable costs increase.

The long-run average total cost curve shows the relationship between output and the average total cost when fixed cost has been chosen to minimize average total cost for each level of output.

The long-run average total cost curve shows the relationship between output and the average total cost when variable cost has been chosen to minimize average total cost for each level of output.

A firm always operates at some point on its long-run average total cost curve in both the long run and the short run.

If output increases,a firm will move along its short-run average total cost curve in the short run until it has time to adjust its fixed cost.

The long-run average cost curve is tangent to a series of short-run average fixed cost curves.

The long-run average cost curve is tangent to a series of short-run average total cost curves.

If a firm has to increase output suddenly to meet an increase in demand,its average total cost will increase in the short run until it has time to add physical capital.

If a firm has to increase output suddenly to meet an increase in demand,its average total cost will decrease in the short run until it has time to add physical capital.

When a firm has to increase its output,average total costs will increase in the short run and then decrease in the long run,after the firm has time to add physical capital.

When a firm has to increase its output,average total costs will decrease in the short run and then increase in the long run after the firm has time to add physical capital.

Scale is the size of a firm's operations.

When the long-run average total cost curve is downward-sloping as output increases,the firm has diseconomies of scale.

When long-run average total cost is constant as output increases,the firm has constant returns to scale.

When the long-run average total cost curve is upward sloping as output increases,the firm has diseconomies of scale.

Economies of scale are often the result of increased specialization,which can occur when output levels increase.

Economies of scale most often occur in industries whose initial fixed cost of plant and equipment is low.

A production function that is characterized by economies of scale will not be subject to diminishing returns.

Diminishing returns are one explanation for diseconomies of scale.

If a firm builds a larger plant and increases output and if its long-run average total cost does not change,the firm has constant returns to scale.

The advantage of specialization in production is one of the primary reasons for decreasing returns to scale.

The production function provides information about: A)a firm's profit level. B)the transformation of inputs into output. C)the location of the firm's production. D)a firm's market structure.

The level of inputs a firm employs will determine a firm's: A)ability to produce output. B)elasticity of demand. C)stock price. D)location of production.

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.Tonya is operating: A)in the long run. B)in the short run. C)in a very expensive location. D)at a loss.

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.In the short run,Tonya's fixed input(s)is/are: A)land. B)labor. C)land and labor. D)neither land nor labor.

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.In the short run,Tonya's variable input(s)is/are: A)land. B)labor. C)land and labor. D)neither land nor labor.

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.As she hires more labor,Tonya's production function shows that the number of apples picked increases at a decreasing rate because of: A)diminishing returns. B)increasing returns. C)constant returns. D)workers becoming lazier.

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.The marginal product of the fourth worker is _____ apples. A)7 B)26 C)5 D)21

With one input fixed,a firm will find that as it attempts to produce more,the total product curve increases at a decreasing rate and its marginal product curve is: A)downward sloping. B)upward sloping. C)constant and horizontal at the marginal product axis. D)constant and vertical at the quantity axis.

(Table: Linda's Copy Shop Production)Use Table: Linda's Copy Shop Production.Linda's production runs into diminishing returns to her variable inputs when she employs the _____ unit. A)second B)third C)fourth D)fifth

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q², where Q is the quantity of dogs groomed.Given this expression,Janet is operating in the: A)long run. B)short run,and her fixed costs are $100. C)long run,and her fixed costs are $100. D)short run,and there are no fixed costs.

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q²,where Q is the quantity of dogs groomed.Given this expression,if Janet grooms five dogs,her total costs will be: A)$100. B)$175. C)$225. D)$75.

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q²,where Q is the quantity of dogs groomed.Janet notices that,as she grooms more dogs,her total cost curve: A)becomes steeper. B)becomes flatter. C)stays constant. D)becomes steeper and then becomes horizontal.

A firm's total fixed cost: A)stays constant in the short run. B)falls as the firm produces more output in the short run. C)falls as the firm produces more output in the long run. D)increases as the firm produces more output.

(Table: Lindsay's Farm)Use Table: Lindsay's Farm.Lindsay's fixed cost of production is: A)$200. B)$450. C)$2,500. D)$2,700.

(Table: Lindsay's Farm)Use Table: Lindsay's Farm.Lindsay's variable costs of production: A)stay constant. B)are equal to 10. C)are zero when she produces no crops. D)fall as soon as she starts producing.

(Table: Lindsay's Farm)Use Table: Lindsay's Farm.When Lindsay produces 140 units of produce,her total cost is: A)$200. B)$150. C)$350. D)$500.

(Table: Lindsay's Farm)Use Table: Lindsay's Farm.When Lindsay produces 50 units of produce,her total cost is: A)$250. B)$50. C)$200. D)$350.

(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.The marginal product of labor of the second worker is _____ units of good Z. A)150 B)225 C)75 D)250

(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.Diminishing returns to labor begin to kick in after Bonnie hires the _____ worker. A)second B)third C)fourth D)fifth

(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.Suppose Bonnie spends $300 per month to rent the building,$100 per month on insurance,and $100 per worker per month.Given this information,Bonnie's monthly fixed costs equal: A)$400. B)$300. C)$500. D)$100.