Economics Chapter 11 Multiple Choice Which The Following Cost Concepts

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64. Multiple Choice: Figure: The Unknown Curve Reference: …

Question Figure: The Unknown Curve

Reference: Ref 11-5

(Figure: The Unknown Curve) Look at the figure The Unknown Curve. You are a

cabinetmaker who employs several workers to produce kitchen and bathroom cabinets.

Your summer intern has created a graph showing a relationship between the number of

cabinetmakers you employ and the number of cabinets produced. Unfortunately, your

intern has failed to identify this curve. It is likely to be the ________ curve:

65. Multiple Choice: Reference: Ref 11-6 (Table: Producti…

Question

Points: 0

Reference: Ref 11-6

(Table: Production of Cabinets) Look at the table The Production of Cabinets. The table

shows how many cabinets your firm can make with different numbers of workers. After

which worker does the firm begin to experience diminishing returns to labor?

66. Multiple Choice: Reference: Ref 11-6 (Table: Producti…

Question

Reference: Ref 11-6

(Table: Production of Cabinets) Look at the table The Production of Cabinets. If each

cabinetmaker could be hired at no cost, how many workers would your firm employ?

Points: 0

67. Multiple Choice: Figure: Change in the Total Product R…

Question Figure: Change in the Total Product

Reference: Ref 11-7

(Figure: Change in the Total Product) Look at the figure Change in the Total Product.

The figure shows a production function that moves from TP1 to TP2. Which of the

following choices is a likely cause of this shift?

Answer Workers in the firm are less productive on average.

68. Multiple Choice: Figure: Change in the Total Product R…

Question

Points: 0

Figure: Change in the Total Product

Reference: Ref 11-7

(Figure: Change in the Total Product) Look at the figure Change in the Total Product.

The figure shows a production function that moves from TP1 to TP2. Based upon this

change, what has happened to the marginal product of labor curve?

Answer It has shifted upward and become flatter.

69. Multiple Choice: A factor of production whose quantity…

Question A factor of production whose quantity can be changed during the short run is:

Answer a marginal factor of production.

70. Multiple Choice: A factor of production whose quantity…

Question A factor of production whose quantity cannot be changed during the short run is:

Answer a marginal factor of production.

Points: 0

71. Multiple Choice: Think about running a restaurant. For…

Question Think about running a restaurant. For this restaurant:

72. Multiple Choice: As defined in the text, the long run ...

Question As defined in the text, the long run is a planning period:

73. Multiple Choice: A planning period during which all of...

Question A planning period during which all of a firm’s resources are variable is the:

74. Multiple Choice: In the long run:

Question In the long run:

Points: 0

75. Multiple Choice: The long run is a period that is:

Question The long run is a period that is:

76. Multiple Choice: Reference: Ref 11-8 (Table: Producti…

Question

Reference: Ref 11-8

(Table: Production of Bagels) Look at the table Production of Bagels. The marginal

product of the third worker is ________ bagels.

77. Multiple Choice: Reference: Ref 11-8 (Table: Producti…

Question

Points: 0

Reference: Ref 11-8

(Table: Production of Bagels) Look at the table Production of Bagels. The marginal

product of the fifth worker is ________ bagels.

78. Multiple Choice: Reference: Ref 11-8 (Table: Producti…

Question

Reference: Ref 11-8

(Table: Production of Bagels) Look at the table Production of Bagels. Diminishing

marginal returns begin with the addition of the ________ worker.

Points: 0

79. Multiple Choice: Diminishing marginal returns means that:

Question Diminishing marginal returns means that:

Answer each additional unit of an input used will decrease output.

80. Multiple Choice: Assuming that all other factors of pr…

Question Assuming that all other factors of production are held constant, marginal product is the

change in ________ output resulting from a one-unit change in ________ .

81. Multiple Choice: The marginal product of labor is the …

Question The marginal product of labor is the change in:

Answer labor divided by the change in total product.

82. Multiple Choice: A farm can produce 1,000 bushels of w...

Question A farm can produce 1,000 bushels of wheat per year with two workers and 1,300

bushels of wheat per year with four workers. The marginal product of the fourth worker

is:

Points: 0

83. Multiple Choice: The marginal product of labor is all ...

Question The marginal product of labor is all of the following except:

Answer the change in output resulting from a one-unit change in labor.

84. Multiple Choice: Suppose that the first four workers g...

Question Suppose that the first four workers generate corresponding total outputs of baby diapers

of 200, 350, 450, and 500, respectively. The marginal product of the second worker is:

Answer 50.

85. Multiple Choice: Suppose that when a coal-production f...

Question Suppose that when a coal-production firm hires one, two, three, four, and five workers,

the corresponding total outputs are 10, 15, 19, 22, and 24 tons, respectively. The

marginal product of the third worker is ________ tons.

Answer 3

Points: 0

86. Multiple Choice: When a firm experiences diminishing m…

Question When a firm experiences diminishing marginal returns:

Answer its output is falling.

87. Multiple Choice: The long run refers to the period for...

Question The long run refers to the period for which:

Answer a fixed input exists.

88. Multiple Choice: The costs associated with variable in...

Question The costs associated with variable inputs are ________ costs and the costs associated

with ________ inputs are ________costs.

fixed; fixed; fixed

89. Multiple Choice: Which of the following cost concepts ...

Question Which of the following cost concepts is correctly defined?

Answer MC = ΔTC / ΔFC

Points: 0

90. Multiple Choice: A cost that does not depend on the qu...

Question A cost that does not depend on the quantity of output produced is called a:

Answer marginal cost.

91. Multiple Choice: Reference: Ref 11-9 (Table: Total Co...

Question

Reference: Ref 11-9

(Table: Total Cost Data) Look at the table Total Cost Data. The table shows cost data

for a bicycle firm operating in the short run. What is the total fixed cost for this firm?

Answer $40

92. Multiple Choice: Reference: Ref 11-9 (Table: Total Co...

Question

Points: 0

Reference: Ref 11-9

(Table: Total Cost Data) Look at the table Total Cost Data. The table shows cost data

for a bicycle firm operating in the short run. What is the total variable cost for this firm

when the firm produces five bicycles?

Answer $50

93. Multiple Choice: The total cost curve for a snowmobile...

Question The total cost curve for a snowmobile dealership shows how ________ cost depends on

the quantity of ________.

Answer total; fixed inputs

94. Multiple Choice: A fixed cost:

Question A fixed cost:

Answer will exist only in the long run.

Points: 0

95. Multiple Choice: The sum of fixed and variable costs is:

Question The sum of fixed and variable costs is:

average cost.

96. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The fixed cost of producing 25 bushels of soybeans is:

Answer $50

97. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Points: 0

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The variable cost of producing 25 bushels of soybeans is:

Answer $50

98. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The total cost of producing 25 bushels of soybeans is:

Answer $50

Points: 0

99. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The variable cost of producing 45 bushels of soybeans is:

Answer $100

100. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The total cost of producing 45 bushels of soybeans is:

Answer $100

Points: 0

101. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The variable cost of producing 60 bushels of soybeans is:

Answer $5

102. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Points: 0

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The total cost of producing 60 bushels of soybeans is:

Answer $150

103. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The total cost of producing 70 bushels of soybeans is:

Answer $250

Points: 0

104. Multiple Choice: Reference: Ref 11-10 (Table: Produc...

Question

Reference: Ref 11-10

(Table: Production Function for Soybeans) The table shows a production function for

soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which

have a combined cost of $150 per day. The cost of labor is $100 per worker per day.

The total cost of producing 75 bushels of soybeans is:

105. Multiple Choice: The total cost curve is:

Question The total cost curve is:

106. Multiple Choice: The fixed cost curve is:

Question The fixed cost curve is:

Points: 0

107. Multiple Choice: As output increases, the total cost c…

Question As output increases, the total cost curve

108. Multiple Choice: The total cost curve gets steeper as …

Question The total cost curve gets steeper as output increases because of

Answer increasing returns to the variable input.

109. Multiple Choice: The change in total output resulting …

Question The change in total output resulting from a one-unit increase in the quantity of an input

used, holding the quantities of all other inputs constant, is:

Answer average cost.

110. Multiple Choice: Austin’s total fixed cost at the bake…

Question Austin’s total fixed cost at the bakery is $3,600 a month. Austin employs 20 workers

and pays each worker $8 an hour. The marginal product of the twentieth worker is 12

iced cupcakes an hour. What is the marginal cost of the last cupcake produced by the

last worker Austin hired?

Answer $0.26

Points: 0

111. Multiple Choice: For Heidi, the marginal cost of produ…

Question For Heidi, the marginal cost of producing one additional photograph equals the change

in ________ divided by the change in the ________.

112. Multiple Choice: When a cherry orchard in Oregon adds ...

Question When a cherry orchard in Oregon adds a worker, the total cost of production increases

by $24,000. Adding the worker increases total cherry output by 600 pounds. Therefore,

the marginal cost of the last pound of cherries produced is:

113. Multiple Choice: Marginal cost can be calculated as:

Question Marginal cost can be calculated as:

Answer ΔTC/ΔQ, where TC is total cost and Q is output.

114. Multiple Choice: If Jakob, who runs a sports jersey as…

Points: 0