Quiz 11: Behind the Supply Curve: Inputs and Costs
Business
Q 1Q 1
A _____ is an organization that produces goods or services for sale.
A)production function
B)firm
C)variable input
D)fixed input
Free
Multiple Choice
B
Q 2Q 2
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.
Free
Multiple Choice
C
Q 3Q 3
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
Free
Multiple Choice
C
Q 4Q 4
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.
Free
Multiple Choice
Q 5Q 5
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.
Free
Multiple Choice
Q 6Q 6
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.
Free
Multiple Choice
Q 7Q 7
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.
Free
Multiple Choice
Q 8Q 8
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.
Free
Multiple Choice
Q 9Q 9
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.
Free
Multiple Choice
Q 10Q 10
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
Free
Multiple Choice
Q 11Q 11
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
Free
Multiple Choice
Q 12Q 12
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
Free
Multiple Choice
Q 13Q 13
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.
Free
Multiple Choice
Q 14Q 14
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.
Free
Multiple Choice
Q 15Q 15
An input whose quantity can be changed in the short run is a(n)_____ input.
A)marginal
B)fixed
C)incremental
D)variable
Free
Multiple Choice
Q 16Q 16
An input whose quantity CANNOT be changed in the short run is:
A)marginal.
B)fixed.
C)incremental.
D)variable.
Free
Multiple Choice
Q 17Q 17
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.
Free
Multiple Choice
Q 18Q 18
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.
Free
Multiple Choice
Q 19Q 19
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.
Free
Multiple Choice
Q 20Q 20
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
Free
Multiple Choice
Q 21Q 21
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
Free
Multiple Choice
Q 22Q 22
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.
Free
Multiple Choice
Q 23Q 23
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
Free
Multiple Choice
Q 24Q 24
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.
Free
Multiple Choice
Q 25Q 25
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.
Free
Multiple Choice
Q 26Q 26
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.
Free
Multiple Choice
Q 27Q 27
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
Free
Multiple Choice
Q 28Q 28
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
Free
Multiple Choice
Q 29Q 29
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
Free
Multiple Choice
Q 30Q 30
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.
Free
Multiple Choice
Q 31Q 31
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.
Free
Multiple Choice
Q 32Q 32
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
Free
Multiple Choice
Q 33Q 33
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.
Free
Multiple Choice
Q 34Q 34
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.
Free
Multiple Choice
Q 35Q 35
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
Free
Multiple Choice
Q 36Q 36
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
Free
Multiple Choice
Q 37Q 37
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.
Free
Multiple Choice
Q 38Q 38
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.
Free
Multiple Choice
Q 39Q 39
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
Free
Multiple Choice
Q 40Q 40
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.
Free
Multiple Choice
Q 41Q 41
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.
Free
Multiple Choice
Q 42Q 42
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.
Free
Multiple Choice
Q 43Q 43
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.
Free
Multiple Choice
Q 44Q 44
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
Free
Multiple Choice
Q 45Q 45
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
Free
Multiple Choice
Q 46Q 46
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.
Free
Multiple Choice
Q 47Q 47
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.
Free
Multiple Choice
Q 48Q 48
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.
Free
Multiple Choice
Q 49Q 49
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.
Free
Multiple Choice
Q 50Q 50
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.
Free
Multiple Choice
Q 51Q 51
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
Free
Multiple Choice
Q 52Q 52
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
Free
Multiple Choice
Q 53Q 53
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.
Free
Multiple Choice
Q 54Q 54
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
Free
Multiple Choice
Q 55Q 55
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
Free
Multiple Choice
Q 56Q 56
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.
Free
Multiple Choice
Q 57Q 57
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
Free
Multiple Choice
Q 58Q 58
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.
Free
Multiple Choice
Q 59Q 59
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
Free
Multiple Choice
Q 60Q 60
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.
Free
Multiple Choice
Q 61Q 61
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
Free
Multiple Choice
Q 62Q 62
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.
Free
Multiple Choice
Q 63Q 63
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.
Free
Multiple Choice
Q 64Q 64
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
Free
Multiple Choice
Q 65Q 65
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
Free
Multiple Choice
Q 66Q 66
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
Free
Multiple Choice
Q 67Q 67
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.
Free
Multiple Choice
Q 68Q 68
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
Free
Multiple Choice
Q 69Q 69
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.
Free
Multiple Choice
Q 70Q 70
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.
Free
Multiple Choice
Q 71Q 71
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.
Free
Multiple Choice
Q 72Q 72
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
Free
Multiple Choice
Q 73Q 73
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
Free
Multiple Choice
Q 74Q 74
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.
Free
Multiple Choice
Q 75Q 75
The _____ cost curve is NOT affected by diminishing returns.
A)average fixed
B)average variable
C)average total
D)marginal
Free
Multiple Choice
Q 76Q 76
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
Free
Multiple Choice
Q 77Q 77
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.
Free
Multiple Choice
Q 78Q 78
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.
Free
Multiple Choice
Q 79Q 79
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.
Free
Multiple Choice
Q 80Q 80
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.
Free
Multiple Choice
Q 81Q 81
Total cost divided by the quantity of output produced is:
A)average total cost.
B)average fixed cost.
C)average product.
D)marginal cost.
Free
Multiple Choice
Q 82Q 82
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.
Free
Multiple Choice
Q 83Q 83
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.
Free
Multiple Choice
Q 84Q 84
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.
Free
Multiple Choice
Q 85Q 85
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.
Free
Multiple Choice
Q 86Q 86
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.
Free
Multiple Choice
Q 87Q 87
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.
Free
Multiple Choice
Q 88Q 88
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.
Free
Multiple Choice
Q 89Q 89
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.
Free
Multiple Choice
Q 90Q 90
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
Free
Multiple Choice
Q 91Q 91
Total cost divided by the quantity of output produced is:
A)always increasing.
B)always decreasing.
C)average total cost.
D)marginal cost.
Free
Multiple Choice
Q 92Q 92
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.
Free
Multiple Choice
Q 93Q 93
Variable cost divided by the quantity of output produced is _____ cost.
A)marginal
B)average total
C)average fixed
D)average variable
Free
Multiple Choice
Q 94Q 94
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.
Free
Multiple Choice
Q 95Q 95
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.
Free
Multiple Choice
Q 96Q 96
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
Free
Multiple Choice
Q 97Q 97
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.
Free
Multiple Choice
Q 98Q 98
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.
Free
Multiple Choice
Q 99Q 99
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
Free
Multiple Choice
Q 100Q 100
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
Free
Multiple Choice
Q 101Q 101
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.
Free
Multiple Choice
Q 102Q 102
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.
Free
Multiple Choice
Q 103Q 103
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.
Free
Multiple Choice
Q 104Q 104
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.
Free
Multiple Choice
Q 105Q 105
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.
Free
Multiple Choice
Q 106Q 106
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.
Free
Multiple Choice
Q 107Q 107
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.
Free
Multiple Choice
Q 108Q 108
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
Free
Multiple Choice
Q 109Q 109
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.
Free
Multiple Choice
Q 110Q 110
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.
Free
Multiple Choice
Q 111Q 111
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.
Free
Multiple Choice
Q 112Q 112
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
Free
Multiple Choice
Q 113Q 113
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
Free
Multiple Choice
Q 114Q 114
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
Free
Multiple Choice
Q 115Q 115
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.
Free
Multiple Choice
Q 116Q 116
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
Free
Multiple Choice
Q 117Q 117
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.
Free
Multiple Choice
Q 118Q 118
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.
Free
Multiple Choice
Q 119Q 119
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.
Free
Multiple Choice
Q 120Q 120
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.
Free
Multiple Choice
Q 121Q 121
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
Free
Multiple Choice
Q 122Q 122
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
Free
Multiple Choice
Q 123Q 123
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
Free
Multiple Choice
Q 124Q 124
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
Free
Multiple Choice
Q 125Q 125
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
Free
Multiple Choice
Q 126Q 126
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
Free
Multiple Choice
Q 127Q 127
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
Free
Multiple Choice
Q 128Q 128
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
Free
Multiple Choice
Q 129Q 129
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
Free
Multiple Choice
Q 130Q 130
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.
Free
Multiple Choice
Q 131Q 131
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.
Free
Multiple Choice
Q 132Q 132
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.
Free
Multiple Choice
Q 133Q 133
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.
Free
Multiple Choice
Q 134Q 134
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.
Free
Multiple Choice
Q 135Q 135
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.
Free
Multiple Choice
Q 136Q 136
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.
Free
Multiple Choice
Q 137Q 137
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.
Free
Multiple Choice
Q 138Q 138
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.
Free
Multiple Choice
Q 139Q 139
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.
Free
Multiple Choice
Q 140Q 140
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.
Free
Multiple Choice
Q 141Q 141
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.
Free
Multiple Choice
Q 142Q 142
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.
Free
Multiple Choice
Q 143Q 143
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.
Free
Multiple Choice
Q 144Q 144
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.
Free
Multiple Choice
Q 145Q 145
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.
Free
Multiple Choice
Q 146Q 146
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.
Free
Multiple Choice
Q 147Q 147
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.
Free
Multiple Choice
Q 148Q 148
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.
Free
Multiple Choice
Q 149Q 149
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
Free
Multiple Choice
Q 150Q 150
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
Free
Multiple Choice
Q 151Q 151
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
Free
Multiple Choice
Q 152Q 152
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
Free
Multiple Choice
Q 153Q 153
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
Free
Multiple Choice
Q 154Q 154
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
Free
Multiple Choice
Q 155Q 155
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
Free
Multiple Choice
Q 156Q 156
(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.
Free
Multiple Choice
Q 157Q 157
(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
Free
Multiple Choice
Free
Multiple Choice
Q 159Q 159
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.
Free
Multiple Choice
Q 160Q 160
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.
Free
Multiple Choice
Q 161Q 161
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.
Free
Multiple Choice
Q 162Q 162
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.
Free
Multiple Choice
Q 163Q 163
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
Free
Multiple Choice
Q 164Q 164
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
Free
Multiple Choice
Q 165Q 165
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
Free
Multiple Choice
Q 166Q 166
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
Free
Multiple Choice
Q 167Q 167
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
Free
Multiple Choice
Q 168Q 168
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
Free
Multiple Choice
Q 169Q 169
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
Free
Multiple Choice
Q 170Q 170
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
Free
Multiple Choice
Q 171Q 171
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
Free
Multiple Choice
Q 172Q 172
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
Free
Multiple Choice
Q 173Q 173
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
Free
Multiple Choice
Q 174Q 174
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
Free
Multiple Choice
Q 175Q 175
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
Free
Multiple Choice
Q 176Q 176
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
Free
Multiple Choice
Q 177Q 177
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
Free
Multiple Choice
Q 178Q 178
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
Free
Multiple Choice
Q 179Q 179
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
Free
Multiple Choice
Q 180Q 180
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
Free
Multiple Choice
Q 181Q 181
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
Free
Multiple Choice
Q 182Q 182
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
Free
Multiple Choice
Q 183Q 183
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
Free
Multiple Choice
Q 184Q 184
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
Free
Multiple Choice
Q 185Q 185
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
Free
Multiple Choice
Q 186Q 186
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
Free
Multiple Choice
Q 187Q 187
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
Free
Multiple Choice
Q 188Q 188
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
Free
Multiple Choice
Q 189Q 189
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
Free
Multiple Choice
Q 190Q 190
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.
Free
Multiple Choice
Q 191Q 191
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
Free
Multiple Choice
Q 192Q 192
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
Free
Multiple Choice
Q 193Q 193
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.
Free
Multiple Choice
Q 194Q 194
The slope of a long-run average total cost curve exhibiting diseconomies of scale is:
A)zero.
B)infinite.
C)positive.
D)negative.
Free
Multiple Choice
Q 195Q 195
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.
Free
Multiple Choice
Q 196Q 196
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
Free
Multiple Choice
Q 197Q 197
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
Free
Multiple Choice
Q 198Q 198
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
Free
Multiple Choice
Q 199Q 199
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
Free
Multiple Choice
Q 200Q 200
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
Free
Multiple Choice
Q 201Q 201
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.
Free
Multiple Choice
Q 202Q 202
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.
Free
Multiple Choice
Q 203Q 203
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.
Free
Multiple Choice
Q 204Q 204
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.
Free
Multiple Choice
Q 205Q 205
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.
Free
Multiple Choice
Q 206Q 206
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.
Free
Multiple Choice
Q 207Q 207
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
Free
Multiple Choice
Q 208Q 208
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.
Free
Multiple Choice
Q 209Q 209
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.
Free
Multiple Choice
Q 210Q 210
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.
Free
Multiple Choice
Q 211Q 211
The slope of a long-run average total cost curve exhibiting decreasing returns to scale is:
A)zero.
B)infinite.
C)positive.
D)negative.
Free
Multiple Choice
Q 212Q 212
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.
Free
Multiple Choice
Q 213Q 213
The slope of a long-run average total cost curve exhibiting increasing returns to scale is:
A)zero.
B)infinite.
C)positive.
D)negative.
Free
Multiple Choice
Q 214Q 214
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.
Free
Multiple Choice
Q 215Q 215
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.
Free
Multiple Choice
Q 216Q 216
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.
Free
Multiple Choice
Q 217Q 217
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.
Free
Multiple Choice
Q 218Q 218
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.
Free
Multiple Choice
Q 219Q 219
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.
Free
Multiple Choice
Q 220Q 220
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.
Free
Multiple Choice
Q 221Q 221
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
Free
Multiple Choice
Q 222Q 222
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.
Free
Multiple Choice
Q 223Q 223
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.
Free
Multiple Choice
Q 224Q 224
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.
Free
Multiple Choice
Q 225Q 225
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.
Free
Multiple Choice
Q 226Q 226
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.
Free
Multiple Choice
Q 227Q 227
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
Free
Multiple Choice
Q 228Q 228
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
Free
Multiple Choice
Q 229Q 229
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.
Free
Multiple Choice
Q 230Q 230
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.
Free
Multiple Choice
Q 231Q 231
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.
Free
Multiple Choice
Q 232Q 232
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.
Free
Multiple Choice
Q 233Q 233
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
Free
Multiple Choice
Q 234Q 234
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
Free
Multiple Choice
Q 235Q 235
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
Free
Multiple Choice
Q 236Q 236
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
Free
Multiple Choice
Q 237Q 237
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
Free
Multiple Choice
Q 238Q 238
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
Free
Multiple Choice
Q 239Q 239
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
Free
Multiple Choice
Q 240Q 240
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
Free
Multiple Choice
Q 241Q 241
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
Free
Multiple Choice
Q 242Q 242
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
Free
Multiple Choice
Q 243Q 243
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
Free
Multiple Choice
Q 244Q 244
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
Free
Multiple Choice
Q 245Q 245
Farmers in the United States grow about three times as much wheat per acre as do farmers in Western Europe.
Free
True False
Q 246Q 246
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.
Free
True False
Free
True False
Q 248Q 248
Joan adds one more employee to her construction company.The additional output produced by this employee represents the average product of this employee.
Free
True False
Q 249Q 249
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.
Free
True False
Free
True False
Q 251Q 251
As more labor is added to a fixed amount of capital,eventually the marginal product of labor decreases.
Free
True False
Free
True False
Q 253Q 253
As a firm increases production in the short run,the marginal cost of output increases because the marginal product of the variable input decreases.
Free
True False
Q 254Q 254
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.
Free
True False
Q 255Q 255
In the short run,and with nonzero fixed costs,the average total cost curve always lies above the average variable cost curve.
Free
True False
Q 256Q 256
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.
Free
True False
Free
True False
Q 258Q 258
In the short run,if marginal cost is higher than average total cost,producing an extra unit of output must raise average total cost.
Free
True False
Q 259Q 259
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.
Free
True False
Q 260Q 260
In some complex production processes,such as nuclear power plants,some inputs have to be treated as being fixed even in the long run.
Free
True False
Free
True False
Q 262Q 262
Firms choose their level of fixed cost in the long run based on the amount of output that they expect to produce.
Free
True False
Free
True False
Free
True False
Free
True False
Free
True False
Q 267Q 267
In the long run,when a firm adds physical capital,workers become more productive,so variable costs increase.
Free
True False
Q 268Q 268
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.
Free
True False
Q 269Q 269
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.
Free
True False
Q 270Q 270
A firm always operates at some point on its long-run average total cost curve in both the long run and the short run.
Free
True False
Q 271Q 271
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.
Free
True False
Q 272Q 272
The long-run average cost curve is tangent to a series of short-run average fixed cost curves.
Free
True False
Q 273Q 273
The long-run average cost curve is tangent to a series of short-run average total cost curves.
Free
True False
Q 274Q 274
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.
Free
True False
Q 275Q 275
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.
Free
True False
Q 276Q 276
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.
Free
True False
Q 277Q 277
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.
Free
True False
Free
True False
Q 279Q 279
When the long-run average total cost curve is downward-sloping as output increases,the firm has diseconomies of scale.
Free
True False
Q 280Q 280
When long-run average total cost is constant as output increases,the firm has constant returns to scale.
Free
True False
Q 281Q 281
When the long-run average total cost curve is upward sloping as output increases,the firm has diseconomies of scale.
Free
True False
Q 282Q 282
Economies of scale are often the result of increased specialization,which can occur when output levels increase.
Free
True False
Q 283Q 283
Economies of scale most often occur in industries whose initial fixed cost of plant and equipment is low.
Free
True False
Q 284Q 284
A production function that is characterized by economies of scale will not be subject to diminishing returns.
Free
True False
Free
True False
Q 286Q 286
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.
Free
True False
Q 287Q 287
The advantage of specialization in production is one of the primary reasons for decreasing returns to scale.
Free
True False
Q 288Q 288
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.
Free
Multiple Choice
Q 289Q 289
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.
Free
Multiple Choice
Q 290Q 290
(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.
Free
Multiple Choice
Q 291Q 291
(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.
Free
Multiple Choice
Q 292Q 292
(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.
Free
Multiple Choice
Q 293Q 293
(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.
Free
Multiple Choice
Q 294Q 294
(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
Free
Multiple Choice
Q 295Q 295
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.
Free
Multiple Choice
Q 296Q 296
(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
Free
Multiple Choice
Q 297Q 297
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.
Free
Multiple Choice
Q 298Q 298
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.
Free
Multiple Choice
Q 299Q 299
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.
Free
Multiple Choice
Q 300Q 300
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.
Free
Multiple Choice
Q 301Q 301
(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.
Free
Multiple Choice
Q 302Q 302
(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.
Free
Multiple Choice
Q 303Q 303
(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.
Free
Multiple Choice
Q 304Q 304
(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.
Free
Multiple Choice
Q 305Q 305
(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
Free
Multiple Choice
Q 306Q 306
(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
Free
Multiple Choice
Q 307Q 307
(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.
Free
Multiple Choice
Q 308Q 308
(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.The costs that vary with Bonnie's level of production are her:
A)fixed costs.
B)variable costs.
C)rent and insurance.
D)costs that remain the same regardless of what she produces.
Free
Multiple Choice
Q 309Q 309
Diminishing returns are a reason that:
A)the marginal cost curve is downward sloping.
B)fixed costs remain constant.
C)the marginal cost curve is upward sloping.
D)the average fixed cost curve is downward sloping.
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Multiple Choice
Q 310Q 310
When a firm produces a small amount of output,the spreading effect:
A)is stronger than the diminishing returns effect.
B)is weaker than the diminishing returns effect.
C)and the diminishing returns effect are equal.
D)is zero.
Free
Multiple Choice
Q 311Q 311
As production increases and the fixed cost is divided by larger quantities of output,average fixed cost drops.This is referred to as the _____ effect.
A)diminishing returns
B)spreading
C)constant cost
D)increasing returns
Free
Multiple Choice
Q 312Q 312
The eventual increase in AVC as output increases is the _____ effect.
A)diminishing returns
B)spreading
C)constant cost
D)increasing returns
Free
Multiple Choice
Q 313Q 313
If ATC is equal to MC,then the firm is operating:
A)at the minimum point of ATC.
B)on the downward-sloping portion of ATC.
C)on the upward-sloping portion of ATC.
D)with increasing returns to scale.
Free
Multiple Choice
Q 314Q 314
The curve that illustrates the relationship between output and average total cost when the fixed cost has been chosen to minimize average total cost for each level of output is the _____ curve.
A)short-run average total cost
B)long-run average total cost
C)marginal cost
D)total product
Free
Multiple Choice
Q 315Q 315
When all of a firm's inputs are doubled,input prices do not change,and this results in the firm's level of production more than doubling,a firm is operating:
A)on the upward-sloping portion of its long-run average total cost curve.
B)on the downward-sloping portion of its long-run average total cost curve.
C)at the minimum of its long-run average total cost curve.
D)on the upward-sloping portion of its marginal cost curve.
Free
Multiple Choice
Q 316Q 316
A firm's long-run average total costs increase as it produces more output.This firm has:
A)economies of scale.
B)constant returns to scale.
C)diseconomies of scale.
D)a spreading effect.
Free
Multiple Choice
Q 317Q 317
Economies and diseconomies of scale are associated with the:
A)long-run average total cost curve and the long run.
B)short-run average total cost curve and the short run.
C)marginal cost curve and both the long and short run.
D)average fixed cost curve and the short run.
Free
Multiple Choice