Econ: Unit 5

question

The marginal product of the second laborer is _____ hats per day.

answer

(labor 2- labor 1) 50-20=30

question

Suppose the total cost of producing in the short run for a CD producer is $500,000 when 2,000,000 CDs are produced. Then:

answer

average total cost is 25 cents per CD, and average fixed cost is unknown given the available information.

question

A firm deciding how many workers it should hire to manufacture kitchen countertops using existing equipment is making a:

answer

short-run decision.

question

Which of the following is not true in the short run?

answer

TC/Q = TVC/Q

question

In the short run, firms:

answer

have at least one fixed input.

question

Cost that must be paid in the short run even when no output is produced are called:

answer

total fixed costs (TFC)

question

The downward-sloping portion of a LRAC curve implies:

answer

economies of scale exist over that range of output.

question

Which of the following is true for a firm in the short run?

answer

a) TVC = TC - TFC
b) TC = TVC + TFC
c) TFC = TC - TVC
d) All of the above are true

question

The average total cost of producing a bell is $10 when Jenny's Jingles produces 100 bells. Total cost when zero bells are produced is $250. Total fixed cost for Jenny's Jingles is:

answer

$250

question

The long-run average cost curve (LRAC) is U-shaped due to:

answer

the existence of economies and dieconomies of scale

question

Average cost for the firm at a scale of production of 400,000 units is_____.

answer

$1,000,000/400,000=$2.50

question

Average product of Hal's Holiday Hats when 3 laborers are employed is _____ hats per day.

answer

question

If total output is 40 units when 4 workers are employed and 48 units when 5 workers are employed, then:

answer

a) average product is 10 when 4 workers are employed.
b) the marginal product of the 5th worker is 8 units.
c) average product must be falling because the marginal product of the 5th worker is lower than the average product of 4 workers.
d) all of the above are true.

question

If a firm is experiencing disconomies of scale, doubling inputs will:

answer

increase, but less than double, output.

question

When output is 500 units, average variable cost (AVC) is equal to_____.

answer

$.80

question

The long run is:

answer

that period of time in which all factors of production are variable.

question

Moving from scale #1 to scale #2 will generate for the firm:

answer

economies of scale since long-run average costs fall.

question

Diminishing marginal product (or "diminishing returns") sets in with the _____ unit of labor hired

answer

third

question

In the long run:

answer

all inputs are variable, and average costs may decrease, remain constant, or increase as the scale of production changes.

question

If the marginal product of the fourth worker is 15 units of output, then the quantity of hats produced per day when four workers are employed is equal to _____.

answer

question

Accounting profit is equal to:

answer

...

question

The typical pattern is for a firm to experience:

answer

...

question

Economic profit is equal to:

answer

...

question

The short run is a period of time in which

answer

...

question

The long run is a period of:

answer

sufficient length to allow a firm to alter its plant size and capacity and all other factors of production.

question

Which of the following statements is true?

answer

...

question

When marginal cost is below average total cost:

answer

...

question

Fixed Cost

answer

a cost that does not change, no matter how much of a good is produced; TC-VC

question

Variable Cost

answer

0 workers= $0; 1=$25; 2=$50; etc. or AVCXQ

question

Total cost

answer

adding fixed and variable costs together or ATCXQ

question

Average Total Cost (ATC)

answer

total costs divided by quantity of output TC/Q

question

Average Fixed Cost (AFC)

answer

fixed cost divided by the quantity of output (FC/Q)

question

Average Variable Cost (AVC)

answer

variable cost divided by the quantity of output (VC/Q)

question

Average Total Cost (ATC)

answer

average fixed cost + average variable cost (AFC + AVC)

question

Marginal Cost (MC)

answer

Change in total cost divided by the change in quantity of output or Change in variable cost divided by the change in quantity of output

question

AFC and AVC

answer

Both U shaped

question

Average Product

answer

Q/L: the amount of output divided by the amount of an input used to produce it

question

Marginal Product

answer

change in quantity/change in labor

1 of 38

question

The marginal product of the second laborer is _____ hats per day.

answer

(labor 2- labor 1) 50-20=30

question

Suppose the total cost of producing in the short run for a CD producer is $500,000 when 2,000,000 CDs are produced. Then:

answer

average total cost is 25 cents per CD, and average fixed cost is unknown given the available information.

question

A firm deciding how many workers it should hire to manufacture kitchen countertops using existing equipment is making a:

answer

short-run decision.

question

Which of the following is not true in the short run?

answer

TC/Q = TVC/Q

question

In the short run, firms:

answer

have at least one fixed input.

question

Cost that must be paid in the short run even when no output is produced are called:

answer

total fixed costs (TFC)

question

The downward-sloping portion of a LRAC curve implies:

answer

economies of scale exist over that range of output.

question

Which of the following is true for a firm in the short run?

answer

a) TVC = TC - TFC
b) TC = TVC + TFC
c) TFC = TC - TVC
d) All of the above are true

question

The average total cost of producing a bell is $10 when Jenny's Jingles produces 100 bells. Total cost when zero bells are produced is $250. Total fixed cost for Jenny's Jingles is:

answer

$250

question

The long-run average cost curve (LRAC) is U-shaped due to:

answer

the existence of economies and dieconomies of scale

question

Average cost for the firm at a scale of production of 400,000 units is_____.

answer

$1,000,000/400,000=$2.50

question

Average product of Hal's Holiday Hats when 3 laborers are employed is _____ hats per day.

answer

question

If total output is 40 units when 4 workers are employed and 48 units when 5 workers are employed, then:

answer

question

If a firm is experiencing disconomies of scale, doubling inputs will:

answer

increase, but less than double, output.

question

When output is 500 units, average variable cost (AVC) is equal to_____.

answer

$.80

question

The long run is:

answer

that period of time in which all factors of production are variable.

question

Moving from scale #1 to scale #2 will generate for the firm:

answer

economies of scale since long-run average costs fall.

question

Diminishing marginal product (or "diminishing returns") sets in with the _____ unit of labor hired

answer

third

question

In the long run:

answer

all inputs are variable, and average costs may decrease, remain constant, or increase as the scale of production changes.

question

If the marginal product of the fourth worker is 15 units of output, then the quantity of hats produced per day when four workers are employed is equal to _____.

answer

question

Accounting profit is equal to:

answer

...

question

The typical pattern is for a firm to experience:

answer

...

question

Economic profit is equal to:

answer

...

question

The short run is a period of time in which

answer

...

question

The long run is a period of:

answer

sufficient length to allow a firm to alter its plant size and capacity and all other factors of production.

question

Which of the following statements is true?

answer

...

question

When marginal cost is below average total cost:

answer

...

question

Fixed Cost

answer

a cost that does not change, no matter how much of a good is produced; TC-VC

question

Variable Cost

answer

0 workers= $0; 1=$25; 2=$50; etc. or AVCXQ

question

Total cost

answer

adding fixed and variable costs together or ATCXQ

question

Average Total Cost (ATC)

answer

total costs divided by quantity of output TC/Q

question

Average Fixed Cost (AFC)

answer

fixed cost divided by the quantity of output (FC/Q)

question

Average Variable Cost (AVC)

answer

variable cost divided by the quantity of output (VC/Q)

question

Average Total Cost (ATC)

answer

average fixed cost + average variable cost (AFC + AVC)

question

Marginal Cost (MC)

answer

Change in total cost divided by the change in quantity of output or Change in variable cost divided by the change in quantity of output

question

AFC and AVC

answer

Both U shaped

question

Average Product

answer

Q/L: the amount of output divided by the amount of an input used to produce it

question

Marginal Product

answer

change in quantity/change in labor

Continue to order Get a quote

Econ: Unit 5

Recent Posts

Recent Comments

Calculate the price of your order

Our guarantees

Money-back guarantee

Zero-plagiarism guarantee

Free-revision policy

Privacy policy

Fair-cooperation guarantee