Question 1

The length of the short run

Accepted Answer

A)   is different for different types of firms.
B)   can never exceed 3 years.
C)   can never exceed 1 year.
D)   is always less than 6 months.E) B) and C)
F) A) and C)

Question 2

Scenario 13-9
Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each.
-Refer to Scenario 13-9.An economist would calculate the total profit for one photo frame to be

Accepted Answer

A)   $10.
B)   $15.
C)   $20.
D)   $25.E) None of the above
F) B) and D)

Question 3

When average total cost is above marginal cost,average total cost is rising.

Accepted Answer

A) True 
 B)False

Question 4

The Big Blue Sky jet company has long-run total costs of $20 million if it produces 5 jets and long-run total costs of $24 million if it produces 6 jets.The Big Blue Sky jet company is experiencing

Accepted Answer

A)   economies of scale.
B)   constant returns to scale.
C)   diseconomies of scale.
D)   negative profits.E) A) and D)
F) B) and D)

Question 5

Table 13-4
Charles's Math Tutoring
 
-Refer to Table 13-4.What is the marginal product of the second worker?

Accepted Answer

A)   15 students
B)   20 students
C)   22.5 students
D)   25 studentsE) A) and B)
F) A) and C)

Question 6

When a firm's only variable input is labor,then the slope of the production function measures the

Accepted Answer

A)   quantity of labor.
B)   quantity of output.
C)   total cost.
D)   marginal product of labor.E) C) and D)
F) A) and D)

Question 7

Figure 13-5
 
-Refer to Figure 13-5.Which of the curves is most likely to represent average fixed cost?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) All of the above
F) B) and C)

Question 8

The shape of the total-cost curve is unrelated to the shape of the production function.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)   $25
B)   $50
C)   $110
D)   $220E) C) and D)
F) A) and B)

Question 10

If the average total cost curve is falling,what is necessarily true of the marginal cost curve? If the average total cost curve is rising,what is necessarily true of the marginal cost curve?

Accepted Answer

When average total cost curve ...

Question 11

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

Accepted Answer

A)   $16.67
B)   $50
C)   $136.67
D)   $360E) B) and C)
F) C) and D)

Question 12

In the long run Willie's Chocolate Factory incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units.For this range of output,Willie's exhibits

Accepted Answer

A)   economies of scale.
B)   constant returns to scale.
C)   diseconomies of scale.
D)   efficient scale.E) None of the above
F) A) and C)

Question 13

Table 13-5
 
-Refer to Table 13-5.Assume that fixed costs are $500,and variable costs are $100 per worker.For this firm,what are the shapes of the production function and the total-cost curve?

Accepted Answer

A)   Both the production function and total-cost curve are increasing at an increasing rate.
B)   Both the production function and total-cost curve are increasing at a decreasing rate.
C)   The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate.
D)   The production function is increasing at an increasing rate, whereas the total-cost function is increasing at a decreasing rate.E) C) and D)
F) B) and C)

Question 14

Diseconomies of scale occur when a firm's

Accepted Answer

A)   marginal costs are constant as output increases.
B)   long-run average total costs are decreasing as output increases.
C)   long-run average total costs are increasing as output increases.
D)   marginal costs are equal to average total costs for all levels of output.E) A) and B)
F) A) and C)

Question 15

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

Accepted Answer

A)   $50
B)   $100
C)   $150
D)   $200E) All of the above
F) B) and C)

Question 16

Table 13-1
 
-Refer to Table 13-1.What is total output when 3 workers are hired?

Accepted Answer

A)   10
B)   40
C)   70
D)   120E) B) and D)
F) A) and B)

Question 17

Which of the following must always be true as the quantity of output increases?

Accepted Answer

A)   Marginal cost must rise.
B)   Average total cost must rise.
C)   Average variable cost must rise.
D)   Average fixed cost must fall.E) A) and C)
F) None of the above

Question 18

Figure 13-1
 
-Refer to Figure 13-1.Suppose the production function shifts from TP2 to TP1.Such a shift in the total product curve is most likely due to a decrease in the firm's

Accepted Answer

A)   costs of production.
B)   product price.
C)   market share.
D)   productivity.E) B) and C)
F) All of the above

Question 19

Consider the following information about baseball production at Bobby's Baseball Factory: 
Bobby pays all his workers the same wage,and labor is his only variable cost.From this information we can conclude that Bobby's average variable cost decreases

Accepted Answer

A)   as output rises from 0 to 10, but rises after that.
B)   as output rises from 0 to 26, but rises after that.
C)   as output rises from 0 to 33, but increases after that.
D)   continually as output rises.E) A) and C)
F) A) and B)

Question 20

The graph of the production function plots total cost versus quantity of output.

Accepted Answer

A) True 
 B)False

Exam 13: The Costs of Production.

When a firm's only variable input is labor,then the slope of the production function measures the

Correct Answer
verified

In the long run Willie's Chocolate Factory incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units.For this range of output,Willie's exhibits

Correct Answer
verified

Which of the following must always be true as the quantity of output increases?

Correct Answer
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Figure 13-5 -Refer to Figure 13-5.Which of the curves is most likely to represent average fixed cost?

Correct Answer
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Figure 13-1 -Refer to Figure 13-1.Suppose the production function shifts from TP2 to TP1.Such a shift in the total product curve is most likely due to a decrease in the firm's

Correct Answer
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Diseconomies of scale occur when a firm's

Correct Answer
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The Big Blue Sky jet company has long-run total costs of $20 million if it produces 5 jets and long-run total costs of $24 million if it produces 6 jets.The Big Blue Sky jet company is experiencing

Correct Answer
verified

The shape of the total-cost curve is unrelated to the shape of the production function.

Correct Answer
verified

Table 13-1 -Refer to Table 13-1.What is total output when 3 workers are hired?

Correct Answer
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If the average total cost curve is falling,what is necessarily true of the marginal cost curve? If the average total cost curve is rising,what is necessarily true of the marginal cost curve?

Correct Answer
verified
When average total cost curve ...
View Answer

Consider the following information about baseball production at Bobby's Baseball Factory: Bobby pays all his workers the same wage,and labor is his only variable cost.From this information we can conclude that Bobby's average variable cost decreases

Correct Answer
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The length of the short run

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

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

Correct Answer
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When average total cost is above marginal cost,average total cost is rising.

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

Correct Answer
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The graph of the production function plots total cost versus quantity of output.

Correct Answer
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Table 13-5 -Refer to Table 13-5.Assume that fixed costs are $500,and variable costs are $100 per worker.For this firm,what are the shapes of the production function and the total-cost curve?

Correct Answer
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Table 13-4 Charles's Math Tutoring -Refer to Table 13-4.What is the marginal product of the second worker?

Correct Answer
verified

Exam 13: The Costs of Production.

When a firm's only variable input is labor,then the slope of the production function measures the

Correct AnswerverifiedShow Answer

In the long run Willie's Chocolate Factory incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units.For this range of output,Willie's exhibits

Correct AnswerverifiedShow Answer

Which of the following must always be true as the quantity of output increases?

Correct AnswerverifiedShow Answer

Figure 13-5 -Refer to Figure 13-5.Which of the curves is most likely to represent average fixed cost?

Correct AnswerverifiedShow Answer

Figure 13-1 -Refer to Figure 13-1.Suppose the production function shifts from TP2 to TP1.Such a shift in the total product curve is most likely due to a decrease in the firm's

Correct AnswerverifiedShow Answer

Diseconomies of scale occur when a firm's

Correct AnswerverifiedShow Answer

The Big Blue Sky jet company has long-run total costs of $20 million if it produces 5 jets and long-run total costs of $24 million if it produces 6 jets.The Big Blue Sky jet company is experiencing

Correct AnswerverifiedShow Answer

The shape of the total-cost curve is unrelated to the shape of the production function.

Correct AnswerverifiedShow Answer

Table 13-1 -Refer to Table 13-1.What is total output when 3 workers are hired?

Correct AnswerverifiedShow Answer

If the average total cost curve is falling,what is necessarily true of the marginal cost curve? If the average total cost curve is rising,what is necessarily true of the marginal cost curve?

Correct AnswerverifiedWhen average total cost curve ...View AnswerShow Answer

Consider the following information about baseball production at Bobby's Baseball Factory: Bobby pays all his workers the same wage,and labor is his only variable cost.From this information we can conclude that Bobby's average variable cost decreases

Correct AnswerverifiedShow Answer

The length of the short run

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

When average total cost is above marginal cost,average total cost is rising.

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

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The graph of the production function plots total cost versus quantity of output.

Correct AnswerverifiedShow Answer

Table 13-5 -Refer to Table 13-5.Assume that fixed costs are $500,and variable costs are $100 per worker.For this firm,what are the shapes of the production function and the total-cost curve?

Correct AnswerverifiedShow Answer

Table 13-4 Charles's Math Tutoring -Refer to Table 13-4.What is the marginal product of the second worker?

Correct AnswerverifiedShow Answer

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When average total cost curve ...
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