Economics Chapter 11 Section Minimum Average Total Cost 10 Multiple

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Test Canvas : Self-Test Quiz – Chapter 11

Microeconom ics, 3e

Test Canvas: Self-Test Quiz – Chapter 11

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1. Multiple Choice: Since the marginal product of labor e…

Question Since the marginal product of labor equals the change in the quantity of output

divided by the change in the quantity of labor, it stands to reason that:

2. Multiple Choice: Daisy incurs $7,200 per month in...

Question Daisy incurs $7,200 per month in fixed costs operating her floral shop. She pays

her employees $9.00 per hour and has three assistants, each working 120 hours

per month. Her other variable costs are $800 per month. What are Daisy‘s total

variable costs and total costs each month?

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Points: 1

3. Multiple Choice: A firm produces children’s bicycles i…

Question A firm produces children’s bicycles in the short run using two inputs, capital and

labor. The quantity of capital is fixed and generates a monthly cost of $6,000. The

quantity of labor can be varied, and the wage rate per hour of labor is $20. If 400

hours of labor are hired for the month, and 140 bicycles units of output are

produced, what is the firm’s average total cost for the month?

4. Multiple Choice: In what way does the spreading effect...

Question In what way does the spreading effect change the average total cost as output

rises?

Points: 1

5. Multiple Choice: The argument in the book called The M…

Question The argument in the book called The Mythical Man-Month is that:

Answer

there are constant returns to scale in computer programming no matter how

much labor is used.

6. Multiple Choice: Samir owns a coffee shop that has mon…

Question Samir owns a coffee shop that has monthly variable costs equal to $8,560. If Samir

sells 11,000 cups of coffee each month, what is the average variable cost per cup?

Points: 1

7. Multiple Choice: Which cost curve is continually falli...

Question Which cost curve is continually falling as output increases?

Answer

the average total cost curve

8. Multiple Choice: Which cost curve is continually upwar…

Question Which cost curve is continually upward sloping?

Answer

the average total cost curve

9. Multiple Choice: The minimum-cost output is the quanti...

Question The minimum-cost output is the quantity corresponding to the minimum point of

the:

Answer

marginal cost curve.

Points: 1

10. Multiple Choice: A firm produces 200 pop-up speakers a…

Question A firm produces 200 pop-up speakers at an average total cost of $27 and an

average variable cost of $24. What is the firm’s level of total fixed cost?

Answer

$3

11. Multiple Choice: Which of the following statements is ...

Question Which of the following statements is true?

Answer

Whenever marginal cost is below average total cost, marginal cost is

decreasing.

12. Multiple Choice: How long is the long run?

Question

Points: 1

How long is the long run?

13. Multiple Choice: All of the following curves are U-sha…

Question All of the following curves are U-shaped, except the:

14. Multiple Choice: The marginal product is the slope of ...

Question The marginal product is the slope of the:

Answer marginal cost curve.

Points: 1

15. Multiple Choice: The marginal cost is the slope of the:

Question The marginal cost is the slope of the:

16. Multiple Choice: What is on the horizontal axis when w...

Question What is on the horizontal axis when we draw a total product curve?

Answer

total cost

17. Multiple Choice: If a firm experiences economies of sc...

Question If a firm experiences economies of scale as it expands production, then:

Points: 1

18. Multiple Choice: A firm experiencing constant returns …

Question A firm experiencing constant returns to scale operates on the horizontal part of the:

19. Multiple Choice: For cities that provide snow removal,...

Question For cities that provide snow removal, which of the following is a fixed cost?

Answer

gasoline for snow plows

20. Multiple Choice: A firm is producing 100 racing bicycl...

Points: 1

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Question A firm is producing 100 racing bicycles at a total cost of $84,000. The firm’s fixed

cost is $24,000. What is the average variable cost?

Answer

$840

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