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# Economics Study Set 8

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## Quiz 12 : Production and Cost Analysis II

Economic efficiency is achieved at a particular output level if:
Free
Multiple Choice

C

To manufacture 1,000 pairs of shoes in a week, a firm must use at least 1,500 workers and 5 machines or 100 machines and 150 workers. Which method can be technically efficient?
Free
Multiple Choice

C

Technical efficiency in production means a given level of output is produced with the minimum amount of inputs.
Free
True False

True

A firm can use 50 workers and 10 machines, 70 workers and 9 machines, or 75 workers and 9 machines to produce 40 chairs. If each worker costs $20 and each machine is rented for$500, the economically efficient input combination is:
Multiple Choice
Economies of scale do not exist in the presence of indivisible setup costs.
True False
Which of the following statements is true?
Multiple Choice
When per-unit costs increase as output increases, there are economies of scale in production.
True False
A social entrepreneur's central motivation in creating "for-benefit" corporations is to achieve social, not just economic, ends.
True False
Which of the following statements is true?
Multiple Choice
The economically efficient method of production:
Multiple Choice
At the planned output level, short-run average total cost equals long-run average total cost, but at all other points, short-run average total cost is higher than long-run average total cost.
True False
A technically efficient method of production produces a given level of output at the lowest possible cost.
True False
The long-run average total cost curve is considered to be an envelope curve as each short-run average total cost curve touches it at only one level of output.
True False
To manufacture 1,000 pairs of shoes in a week, a firm can use 1,500 workers and 50 machines or 100 machines and 2,000 workers. Which method is more technically efficient?
Multiple Choice
An economically efficient method of production produces a given level of output at the lowest possible cost.
True False
Economies of scope exist when the production of one good is less costly because other related goods already are being produced.
True False