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Economics Study Set 8

Business

Quiz 12 :

Production and Cost Analysis II

Quiz 12 :

Production and Cost Analysis II

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

Answer:

C

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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
Answer:

Answer:

C

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

Answer:

True

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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
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Economies of scale do not exist in the presence of indivisible setup costs.
True False
Answer:
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Which of the following statements is true?
Multiple Choice
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When per-unit costs increase as output increases, there are economies of scale in production.
True False
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A social entrepreneur's central motivation in creating "for-benefit" corporations is to achieve social, not just economic, ends.
True False
Answer:
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Which of the following statements is true?
Multiple Choice
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The economically efficient method of production:
Multiple Choice
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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
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A technically efficient method of production produces a given level of output at the lowest possible cost.
True False
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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
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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
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An economically efficient method of production produces a given level of output at the lowest possible cost.
True False
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Economies of scope exist when the production of one good is less costly because other related goods already are being produced.
True False
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Some children in Siliguri, India, work as low-wage professional rock breakers. The rocks they break with a hammer are used in buildings and roads. In terms of the idea of efficiency, having children break rocks with hammers:
Multiple Choice
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The production techniques available to real-world firms are constantly changing because of learning by doing and technological change.
True False
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An entrepreneur is an individual who sees an opportunity to sell an item at a price higher than the average total cost of producing it.
True False
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The minimum efficient level of production refers to the production level in the long run that spreads setup costs out just enough to make production profitable.
True False
Answer:
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