Question 1

Which type of cost does not change as the quantity of output produced changes?

Accepted Answer

A)  average total cost
B)  marginal cost
C)  average fixed cost
D)  total fixed cost
E)  Both C and D are correct.F) C) and E)
G) B) and D)

Question 2

Which one of the following statements is false?

Accepted Answer

A)  Total variable cost plus total fixed cost equals total cost.
B)  Marginal cost equals the change in total cost divided by the change in output.
C)  Average total cost is calculated by dividing total cost by the level of output.
D)  The average cost curve is U-shaped.
E)  The total cost curve is U-shaped.F) A) and E)
G) B) and D)

Question 3

Table 11.2.1
 
-Refer to Table 11.2.1 which gives Tania's total product schedule.Marginal product of labour reaches its maximum when the number of workers increases from

Accepted Answer

A)  0 to 1.
B)  1 to 2.
C)  2 to 3.
D)  3 to 4.
E)  4 to 5F) C) and D)
G) A) and C)

Question 4

Choose the correct statement.

Accepted Answer

A)  The long run is a period of time in which the quantity of at least one input is fixed.
B)  The short run is a period of time in which the firm has sufficient time to change all its inputs.
C)  The long run is a time frame that lasts for 10 years.
D)  In the short run, the firm's plant is fixed.
E)  A firm always has plenty of time to make decisions about changing its inputs no matter if it is in a short run or long run position.F) All of the above
G) B) and E)

Question 5

The average product of energy equals

Accepted Answer

A)  the increase in total product divided by the increase in energy used.
B)  total product divided by the quantity of energy used.
C)  the slope of the total product curve.
D)  the slope of the marginal product curve.
E)  the difference between the total product and the marginal product of energy.F) A) and B)
G) A) and C)

Question 6

Use the figure below to answer the following questions.
  
Figure 11.4.2
-Refer to Figure 11.4.2,which illustrates the short-run average total cost curves for four different plant sizes.Which plant has the lowest average total cost for an output rate of 5 sweaters a day?

Accepted Answer

A)  Plant A
B)  Plant B
C)  Plant C
D)  Plant D
E)  none of the aboveF) D) and E)
G) A) and E)

Question 7

The average product of labour equals

Accepted Answer

A)  the slope of the total product curve.
B)  the slope of the marginal product curve.
C)  the increase in total product divided by the increase in labour employed.
D)  total product divided by the quantity of labour employed.
E)  the difference between the total product and the marginal product of labour.F) A) and C)
G) A) and B)

Question 8

Diseconomies of scale are present when

Accepted Answer

A)  the LRAC curve slopes downward.
B)  average total cost falls as input increases.
C)  average total cost rises as output increases.
D)  the LRAC curve is horizontal.
E)  total fixed cost increases.F) A) and D)
G) A) and E)

Question 9

If ATC is falling,then MC must be

Accepted Answer

A)  rising.
B)  falling.
C)  equal to ATC.
D)  above ATC.
E)  below ATC.F) A) and B)
G) A) and E)

Question 10

If the marginal product of the fifth worker is 34,then the total product of five workers

Accepted Answer

A)  is 35.
B)  is 24.
C)  is 170.
D)  is 6.8.
E)  cannot be calculated with the information given.F) A) and B)
G) C) and E)

Question 11

If the average variable cost of producing 10 units is $18 and the average variable cost of producing 11 units is $20,we know that,between 10 and 11 units of output,

Accepted Answer

A)  marginal cost is increasing.
B)  average total cost is increasing.
C)  average fixed cost is increasing.
D)  total cost is either increasing or decreasing.
E)  none of the above.F) C) and E)
G) A) and B)

Question 12

The average variable cost curve will shift upward if

Accepted Answer

A)  there is an increase in fixed cost.
B)  there is a technological advance.
C)  the price of the variable input decreases.
D)  the price of the variable input increases.
E)  the price of output increases.F) D) and E)
G) None of the above

Question 13

A firm's total fixed cost is $100.If total cost is $200 for one unit of output and $310 for two units,what is the marginal cost of the second unit?

Accepted Answer

A)  $100
B)  $110
C)  $200
D)  $210
E)  $310F) B) and E)
G) A) and D)

Exam 11: Output and Costs

If the marginal product of the fifth worker is 34,then the total product of five workers

Correct Answer
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Diseconomies of scale are present when

Correct Answer
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Which type of cost does not change as the quantity of output produced changes?

Correct Answer
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If the average variable cost of producing 10 units is $18 and the average variable cost of producing 11 units is $20,we know that,between 10 and 11 units of output,

Correct Answer
verified

The average variable cost curve will shift upward if

Correct Answer
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Choose the correct statement.

Correct Answer
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Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule.Marginal product of labour reaches its maximum when the number of workers increases from

Correct Answer
verified

The average product of energy equals

Correct Answer
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The average product of labour equals

Correct Answer
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A firm's total fixed cost is $100.If total cost is $200 for one unit of output and $310 for two units,what is the marginal cost of the second unit?

Correct Answer
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If ATC is falling,then MC must be

Correct Answer
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Use the figure below to answer the following questions. Figure 11.4.2 -Refer to Figure 11.4.2,which illustrates the short-run average total cost curves for four different plant sizes.Which plant has the lowest average total cost for an output rate of 5 sweaters a day?

Correct Answer
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Which one of the following statements is false?

Correct Answer
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Exam 11: Output and Costs

If the marginal product of the fifth worker is 34,then the total product of five workers

Correct AnswerverifiedShow Answer

Diseconomies of scale are present when

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Which type of cost does not change as the quantity of output produced changes?

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If the average variable cost of producing 10 units is $18 and the average variable cost of producing 11 units is $20,we know that,between 10 and 11 units of output,

Correct AnswerverifiedShow Answer

The average variable cost curve will shift upward if

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Choose the correct statement.

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Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule.Marginal product of labour reaches its maximum when the number of workers increases from

Correct AnswerverifiedShow Answer

The average product of energy equals

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The average product of labour equals

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A firm's total fixed cost is $100.If total cost is $200 for one unit of output and $310 for two units,what is the marginal cost of the second unit?

Correct AnswerverifiedShow Answer

If ATC is falling,then MC must be

Correct AnswerverifiedShow Answer

Use the figure below to answer the following questions. Figure 11.4.2 -Refer to Figure 11.4.2,which illustrates the short-run average total cost curves for four different plant sizes.Which plant has the lowest average total cost for an output rate of 5 sweaters a day?

Correct AnswerverifiedShow Answer

Which one of the following statements is false?

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