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Question If Jakob, who runs a sports jersey assembly factory, knows the marginal cost of
producing the seventh sports jersey is $21, then the total cost of seven sports jerseys
is:
Answer $21.
115. Multiple Choice: If Marie Marionettes is operating und...
Question If Marie Marionettes is operating under conditions of diminishing marginal product, the
marginal costs will be:
Answer equal to average total cost.
116. Multiple Choice: Buford Bus Manufacturing installs a n...
Question Buford Bus Manufacturing installs a new assembly line. As a result, the output
produced per worker increases. The marginal cost of output at Buford:
Answer will increase (the MC curve will shift up).
117. Multiple Choice: If Jakob, who runs a sports jersey as...
Question If Jakob, who runs a sports jersey assembly factory, knows the marginal cost of the
first sports jersey is $21, the marginal cost of the second sports jersey is $40, and the
marginal cost of the third jersey is $17, what is the total variable cost of producing three
jerseys?
Answer $26
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118. Multiple Choice: The marginal cost curve is the mirror...
Question The marginal cost curve is the mirror image of the:
Answer total product curve.
119. Multiple Choice: Ashley Bakery expects its marginal co...
Question Ashley Bakery expects its marginal cost curve will eventually slope upward, because
as with most production processes, baking has:
Answer constant opportunity costs.
120. Multiple Choice: The curve that shows the additional c...
Question The curve that shows the additional cost of producing each additional unit of output is
called the:
Answer average cost curve.
121. Multiple Choice: Marginal cost is the change in:
Question Marginal cost is the change in:
Answer total cost resulting from a one-unit change in a variable input.
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122. Multiple Choice: A firm's marginal cost is:
Question A firm's marginal cost is:
123. Multiple Choice: Marginal cost ________ over the range...
Question Marginal cost ________ over the range of increasing marginal returns and ________
over the range of diminishing marginal returns.
Answer increases; decreases
124. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is false?
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125. Multiple Choice: The curve that shows the additional c...
Question The curve that shows the additional cost of each additional unit of output is called the:
Answer average cost curve.
126. Multiple Choice: Marginal cost is the change in:
Question Marginal cost is the change in:
Answer total product resulting from a one-unit change in a variable input.
127. Multiple Choice: The change in total cost resulting fr...
Question The change in total cost resulting from a one-unit change in quantity is:
Answer average fixed cost.
128. Multiple Choice: A firm's marginal cost is:
Question A firm's marginal cost is:
Answer the ratio of the change in fixed cost to the change in the quantity of output.
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129. Multiple Choice: Marginal cost is the:
Question Marginal cost is the:
130. Multiple Choice: The larger the output, the greater th...
Question The larger the output, the greater the quantity of output over which fixed cost is spread.
Called the ________ effect, this leads to a ___________.
131. Multiple Choice: The larger the output, the greater th...
Question The larger the output, the greater the amount of variable input required to produce
additional units. Called the ________ effect, this leads to a ___________.
Answer spreading; lower average fixed cost.
132. Multiple Choice: The average total cost curve has a U-...
Question The average total cost curve has a U-shape because the ___________ effect is
dominant at low levels of output, and the __________ effect is dominant at high levels of
output.
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133. Multiple Choice: Oscar has negotiated a lease for his ...
Question Oscar has negotiated a lease for his sporting goods store in which he is required to pay
$2,500 per month in rent. Oscar pays his staff $9 per hour to sell sporting goods and
his monthly electricity bill averages $700, depending on his total hours of operation.
Oscar's fixed costs of production equal:
134. Multiple Choice: Krista operates a dry-cleaning busine...
Question Krista operates a dry-cleaning business in Tampa that incurs $900 per month in fixed
costs. Last month her total output equaled 3,000 pounds of clothes. This month her
total output fell to 2,700 pounds. This means her average fixed cost ________ by a little
more than ________.
Answer fell; 3.33 cents
135. Multiple Choice: Darren runs a barbershop with average...
Question Darren runs a barbershop with average fixed costs equal to $60 per day and a total
output of 50 haircuts per day. What is his weekly total fixed cost if he is open six days
per week?
136. Multiple Choice: The average total cost of producing c...
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Question The average total cost of producing cell phones in a factory is $20 at the current output
level of 100 units per week. If fixed cost is $1,200 per week:
Answer average fixed cost is $20.
137. Multiple Choice: Average variable cost equals all of t...
Question Average variable cost equals all of the following except:
Answer variable cost divided by output.
138. Multiple Choice: You run a business producing picture ...
Question You run a business producing picture frames. This month your total cost of production
is $10,000, your variable cost of production is $6,000, and you produce 3,000 picture
frames. It follows that:
139. Multiple Choice: For every restaurant in Cleveland, th...
Question For every restaurant in Cleveland, the average total cost curve ________ at ________
levels of output, then ________ at ________ levels.
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140. Multiple Choice: In the short run, the average total c...
Question In the short run, the average total cost curve slopes upward because of:
Answer economies of scale.
141. Multiple Choice: Which of the following curves is not ...
Question Which of the following curves is not affected by the existence of diminishing returns?
142. Multiple Choice: The ________ curve continually declin...
Question The ________ curve continually declines as more output is produced in the short run.
Answer marginal cost
143. Multiple Choice: Figure: The Average Total Cost Curve ...
Question
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Figure: The Average Total Cost Curve
Reference: Ref 11-11
(Figure: The Average Total Cost Curve) Look at the figure The Average Total Cost Curve.
In the figure, the total cost of producing three pairs of boots is approximately:
Answer $24.
144. Multiple Choice: Figure: The Average Total Cost Curve ...
Question Figure: The Average Total Cost Curve
Reference: Ref 11-11
(Figure: The Average Total Cost Curve) Look at the figure The Average Total Cost Curve.
In the figure, the total cost of producing five pairs of boots is approximately:
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$17.
145. Multiple Choice: Figure: The Average Total Cost Curve ...
Question Figure: The Average Total Cost Curve
Reference: Ref 11-11
(Figure: The Average Total Cost Curve) Look at the figure The Average Total Cost Curve.
In the figure, the total cost of producing 10 pairs of boots is approximately:
Answer $13.
146. Multiple Choice: Average total cost is:
Question Average total cost is:
Answer the change in cost divided by the change in output.
147. Multiple Choice: Total cost divided by the quantity of...
Question Total cost divided by the quantity of output produced is:
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148. Multiple Choice: Average variable cost is:
Question Average variable cost is:
Answer the firm's variable cost per unit multiplied by the output.
149. Multiple Choice: Average variable cost is the ratio of:
Question Average variable cost is the ratio of:
Answer total cost to the marginal cost.
150. Multiple Choice: If an eyeglass business produces 10 p...
Question If an eyeglass business produces 10 pairs of eyeglasses and incurs $30 in average
variable cost and $5 in average fixed cost, then average total cost is:
Answer $30.
151. Multiple Choice: If an eyeglass business produces 10 p...
Question If an eyeglass business produces 10 pairs of eyeglasses and incurs $35 in average
total cost and $5 in average fixed cost, then average variable cost is:
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152. Multiple Choice: If an eyeglass business produces 10 p...
Question If an eyeglass business produces 10 pairs of eyeglasses and incurs $30 in average
variable cost and $5 in average fixed cost, then total cost is:
Answer $35.
153. Multiple Choice: If an eyeglass business produces 10 p...
Question If an eyeglass business produces 10 pairs of eyeglasses and incurs $30 in average
variable cost and $35 in average total cost, then total fixed cost is:
Answer $3.
154. Multiple Choice: Average total cost is:
Question Average total cost is:
Answer the change in variable cost divided by the change in quantity.
155. Multiple Choice: Average variable cost is:
Question Average variable cost is:
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156. Multiple Choice: Average total cost is the ratio of:
Question Average total cost is the ratio of:
157. Multiple Choice: Total cost divided by the quantity of...
Question Total cost divided by the quantity of output produced is:
Answer always increasing.
158. Multiple Choice: Average variable cost is the ratio of:
Question Average variable cost is the ratio of:
Answer total cost to the marginal cost.
159. Multiple Choice: Variable cost divided by the quantity...
Question Variable cost divided by the quantity of output produced is:
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Answer marginal cost.
160. Multiple Choice: Tankao makes ear buds for mobile devi...
Question Tankao makes ear buds for mobile devices. When Tankao produces 20 sets of ear
buds, its average variable cost is $5 per set and its average total cost is $8 per set.
Tankao's:
161. Multiple Choice: Tankao makes Bluetooth sets for mobil...
Question Tankao makes Bluetooth sets for mobile devices. When 50 Bluetooth sets are
produced, the average variable cost is $30. Tankao's:
Answer average total cost is $30.
162. Multiple Choice: Austin's total fixed cost is $3,600 a...
Question Austin's total fixed cost is $3,600 a month at his cupcake bakery. Austin employs 20
workers and pays each worker $600 a month. If labor is his only variable cost, what is
Austin's total cost?
Answer $3,600
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163. Multiple Choice: When marginal cost is rising:
Question When marginal cost is rising:
Answer average variable cost must be rising.
164. Multiple Choice: When Aishe's Bar-B-Que produces 10 po...
Question When Aishe's Bar-B-Que produces 10 pork sandwiches, the total cost is $5. When 11
pork sandwiches are produced, the total cost rises to $6. From this we know that the
marginal cost of the eleventh pork sandwich:
Answer is equal to the average cost of 11 pork sandwiches.
165. Multiple Choice: Suppose the marginal cost curve in th...
Question Suppose the marginal cost curve in the short run first decreases, then reaches a
minimum, and then increases. If we are at an output where marginal cost is decreasing,
then:
Answer marginal product must be increasing.
166. Multiple Choice: Suppose the marginal cost curve in th...
Question Suppose the marginal cost curve in the short run first decreases, then reaches a
minimum, and then increases. If we are at an output where marginal cost is increasing,
then:
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167. Multiple Choice: Rebecca knows that Becca Furniture's ...
Question Rebecca knows that Becca Furniture's marginal cost curve is above the average total
cost curve. This means Becca Furniture's average total cost curve:
168. Multiple Choice: The marginal cost curve intersects th...
Question The marginal cost curve intersects the average variable cost curve at:
169. Multiple Choice: When marginal cost is below average v...
Question When marginal cost is below average variable cost, average variable cost must be:
170. Multiple Choice: When marginal cost is above average v...
Question When marginal cost is above average variable cost, average variable cost must be:
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171. Multiple Choice: If marginal cost is greater than aver...
Question If marginal cost is greater than average total cost, then:
172. Multiple Choice: If marginal cost is equal to average ...
Question If marginal cost is equal to average total cost, then:
Answer average total cost is increasing.
173. Multiple Choice: If an increase in output results in a...
Question If an increase in output results in a decrease in average total cost, the corresponding
marginal cost is:
174. Multiple Choice: When a fine caterer produces 30 cater...
Question When a fine caterer produces 30 catered meals, its marginal cost and average variable
cost each equal $10. Therefore, assuming normally shaped cost curves, at 29 meals:
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175. Multiple Choice: When marginal cost is below average v...
Question When marginal cost is below average variable cost, average variable cost must be:
Answer above average total cost.
176. Multiple Choice: When marginal cost is above average v...
Question When marginal cost is above average variable cost, average variable cost must be:
Answer at its minimum.
177. Multiple Choice: If marginal cost is greater than aver...
Question If marginal cost is greater than average total cost, then:
Answer average total cost is at its maximum.
178. Multiple Choice: If marginal cost is less than average...
Question If marginal cost is less than average total cost, then:
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Answer average total cost is increasing.
179. Multiple Choice: Suppose Cyd knows the average total c...
Question Suppose Cyd knows the average total cost of producing 9 scones is $5, while the
average total cost of producing 10 scones is $5.20. What is the marginal cost of the
10th scone?
180. Multiple Choice: Reference: Ref 11-12 (Table: Output ...
Question
Reference: Ref 11-12
(Table: Output and Marginal Cost) Look at the table Output and Marginal Cost. After
graduation you achieve your dream of opening your own art shop that specializes in
selling mud statues. After careful study, you determine the information in the table. How
many workers should you hire to minimize your average variable costs?
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181. Multiple Choice: Kaile Cakes produces 10 cakes per day...
Question Kaile Cakes produces 10 cakes per day. The marginal cost of the tenth cake is $24,
and average total cost of 10 cakes is $6. The average total cost of 9 cakes is:
182. Multiple Choice: Cindy operates Birds-R-Us, a small st...
Question Cindy operates Birds-R-Us, a small store manufacturing and selling 100 bird feeders per
month. Cindy's monthly total fixed costs are $500, and her monthly total variable costs
are $2,500. If for some reason Cindy's fixed cost fell to $400, then her:
183. Multiple Choice: In the short run, as output gets larg...
Question In the short run, as output gets larger and larger:
Answer fixed cost gets smaller.
184. Multiple Choice: Figure and Table: Variable, Fixed, an...
Question
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