Question 1

Table 13-7
The Flying Elvis Copter Rides
 
-Refer to Table 13-7.What is the value of P?

Accepted Answer

A)   $50
B)   $140
C)   $360
D)   $410

Question 2

Which of the following measures of cost is best described as "the increase in total cost that arises from an extra unit of production?"

Accepted Answer

A)   variable cost
B)   average variable cost
C)   average total cost
D)   marginal cost

Question 3

Economists and accountants usually disagree on the inclusion of implicit costs into the cost analysis of a firm.

Accepted Answer

A) True 
 B)False

Question 4

Marginal cost is equal to

Accepted Answer

A)   TC/Q.
B)    Δ\DeltaΔ ATC/Q.
C)    Δ\DeltaΔ TC/ Δ\DeltaΔ Q.
D)    Δ\DeltaΔ Q/ Δ\DeltaΔ TC.

Question 5

Variable costs equal fixed costs when nothing is produced.

Accepted Answer

A) True 
 B)False

Question 6

Table 13-2
 
-Refer to Table 13-2.What is the shape of the average-total-cost curve?

Accepted Answer

ATC = TC/Q,where TC is graphed on the ve...

Question 7

Table 13-1
 
-Refer to Table 13-1.What is total output when 4 workers are hired?

Accepted Answer

A)   -10
B)   70
C)   120
D)   160

Question 8

Whenever marginal cost is greater than average total cost,

Accepted Answer

A)   average total cost is rising.
B)   marginal cost is falling.
C)   average total cost is falling.
D)   Both b and c are correct.

Question 9

In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,650 when output is 40 units.Firm A exhibits

Accepted Answer

A)   diseconomies of scale because total cost is rising as output rises.
B)   diseconomies of scale because average total cost is rising as output rises.
C)   economies of scale because total cost is rising as output rises.
D)   economies of scale because average total cost is falling as output rises.

Question 10

Table 13-2
 
-Refer to Table 13-2.What is the average variable cost of producing 500 units of output?

Accepted Answer

AVC = VC/Q...

Question 11

Which field of economics studies how the number of firms affects the prices in a market and the efficiency of market outcomes?

Accepted Answer

A)   macroeconomics
B)   industrial organization
C)   labor economics
D)   monetary economics

Question 12

The average-total-cost curve reflects the shape of both the average-fixed-cost and average-variable-cost curves.

Accepted Answer

A) True 
 B)False

Question 13

If long-run average total cost decreases as the quantity of output increases,the firm is experiencing

Accepted Answer

A)   economies of scale.
B)   diseconomies of scale.
C)   coordination problems arising from the large size of the firm.
D)   fixed costs greatly exceeding variable costs.

Question 14

Figure 13-10 1 to Q2. B)  Q2 to Q3. C)  Q3 to Q4. D)  Q4 to Q5." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 13-10.The firm experiences diseconomies of scale if it changes its level of output from

Accepted Answer

A)   Q1 to Q2.
B)   Q2 to Q3.
C)   Q3 to Q4.
D)   Q4 to Q5.

Question 15

If Tanya sells 200 glasses of fruit punch at $0.50 each,her total revenues are

Accepted Answer

A)   $100.
B)   $199.50.
C)   $200.
D)   $400.

Question 16

As a firm moves along its long-run average cost curve,it is adjusting the size of its factory to the quantity of production.

Accepted Answer

A) True 
 B)False

Question 17

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9.At output levels greater than N,the firm experiences

Accepted Answer

A)   economies of scale.
B)   constant returns to scale.
C)   diseconomies of scale.
D)   minimum efficient scale.

Question 18

What might cause economies of scale?

Accepted Answer

specializa...

Question 19

When the marginal product of an input declines as the quantity of that input increases,the production function exhibits

Accepted Answer

A)   increasing marginal product.
B)   diminishing marginal product.
C)   diminishing total product.
D)   Both b and c are correct.

Question 20

The minimum points of the average variable cost and average total cost curves occur where the

Accepted Answer

A)   marginal cost curve lies below the average variable cost and average total cost curves.
B)   marginal cost curve intersects those curves.
C)   average variable cost and average total cost curves intersect.
D)   slope of total cost is the smallest.

Exam 13: The Costs of Production

When the marginal product of an input declines as the quantity of that input increases,the production function exhibits

Correct AnswerverifiedShow Answer

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9.At output levels greater than N,the firm experiences

Correct AnswerverifiedShow Answer

Variable costs equal fixed costs when nothing is produced.

Correct AnswerverifiedShow Answer

In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,650 when output is 40 units.Firm A exhibits

Correct AnswerverifiedShow Answer

Marginal cost is equal to

Correct AnswerverifiedShow Answer

Which of the following measures of cost is best described as "the increase in total cost that arises from an extra unit of production?"

Correct AnswerverifiedShow Answer

Table 13-2 -Refer to Table 13-2.What is the average variable cost of producing 500 units of output?

Correct AnswerverifiedAVC = VC/Q...View AnswerShow Answer

Which field of economics studies how the number of firms affects the prices in a market and the efficiency of market outcomes?

Correct AnswerverifiedShow Answer

As a firm moves along its long-run average cost curve,it is adjusting the size of its factory to the quantity of production.

Correct AnswerverifiedShow Answer

Whenever marginal cost is greater than average total cost,

Correct AnswerverifiedShow Answer

Economists and accountants usually disagree on the inclusion of implicit costs into the cost analysis of a firm.

Correct AnswerverifiedShow Answer

Table 13-7 The Flying Elvis Copter Rides -Refer to Table 13-7.What is the value of P?

Correct AnswerverifiedShow Answer

The minimum points of the average variable cost and average total cost curves occur where the

Correct AnswerverifiedShow Answer

If Tanya sells 200 glasses of fruit punch at $0.50 each,her total revenues are

Correct AnswerverifiedShow Answer

If long-run average total cost decreases as the quantity of output increases,the firm is experiencing

Correct AnswerverifiedShow Answer

Table 13-1 -Refer to Table 13-1.What is total output when 4 workers are hired?

Correct AnswerverifiedShow Answer

What might cause economies of scale?

Correct Answerverifiedspecializa...View AnswerShow Answer

Figure 13-10 -Refer to Figure 13-10.The firm experiences diseconomies of scale if it changes its level of output from

Correct AnswerverifiedShow Answer

The average-total-cost curve reflects the shape of both the average-fixed-cost and average-variable-cost curves.

Correct AnswerverifiedShow Answer

Table 13-2 -Refer to Table 13-2.What is the shape of the average-total-cost curve?

Correct AnswerverifiedATC = TC/Q,where TC is graphed on the ve...View AnswerShow Answer

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AVC = VC/Q...
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specializa...
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ATC = TC/Q,where TC is graphed on the ve...
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