Micro

question

The following question is based on the table below. The average fixed cost of producing four units of output is equal to *

answer

$30

question

The graph below shows the cost curves for a competitive firm that produces 20 units of output. What are the total cost and the total fixed cost of producing 20 units of output? *

answer

Total cost = $120 and Fixed cost = $20

question

The table below shows a competitive firm's total variable cost (TVC) and total fixed cost (TFC) at various units of output. When output is 3 units, which of the following is correct? *

answer

The average variable cost is $5 and the marginal cost is $7

question

An increase in which of the following will cause a firm's marginal cost curve to shift upward? *

answer

The price of a variable input

question

Assume that total fixed costs are $46, that the average product of labor is 5 units when 10 units of output are produced, and that the wage rate is $12. If labor is the only variable input, what is the average total cost of producing 10 units of output? *

answer

question

Given the production schedule below, what is the maximum number of workers the firm can hire before the effects of diminishing marginal returns set in? *

answer

question

The vertical distance CF represents the: *

answer

average fixed cost of producing Q1 units of output

question

If a firm's production function exhibits diminishing marginal product of the variable input in the short run, which of the following about the firm's short-run marginal cost (MC) curve must be true? *

answer

As output increases, the MC curve slopes upward.

question

Which of the following must be true if at the tenth unit of output, marginal cost ( MC ) is $130 and average total cost ( ATC ) is $150? *

answer

ATC of producing the ninth unit is higher than $150 .

question

Which of the following can cause a firm's Marginal Cost curve to shift downward? *

answer

A decrease in the price of energy

question

Assume that labor is the only variable input. If a firm's short-run marginal cost is increasing as output rises, which of the following must be true? *

answer

Marginal product of labor is decreasing.

question

A perfectly competitive firm operates with a fixed amount of capital that costs $1,000 per day. Labor is the only variable input. The firm hires labor in a perfectly competitive labor market at $100 per day per worker. The table below shows the firm's production function. What is the marginal product of the third worker? *

answer

question

Assume the marginal product of labor first rises, reaches a maximum, and then falls. If the average product of labor is falling, which of the following is true? *

answer

The marginal product of labor must be falling.

question

Which of the following is always true of the relationship between average and marginal costs? *

answer

Average variable costs are increasing when marginal costs are higher than average variable costs.

question

Based on the graph below, at an output of Q1: *

answer

MC is increasing, AVC is decreasing, AFC is decreasing, and ATC is decreasing

1 of 15

question

The following question is based on the table below. The average fixed cost of producing four units of output is equal to *

answer

$30

question

The graph below shows the cost curves for a competitive firm that produces 20 units of output. What are the total cost and the total fixed cost of producing 20 units of output? *

answer

Total cost = $120 and Fixed cost = $20

question

The table below shows a competitive firm's total variable cost (TVC) and total fixed cost (TFC) at various units of output. When output is 3 units, which of the following is correct? *

answer

The average variable cost is $5 and the marginal cost is $7

question

An increase in which of the following will cause a firm's marginal cost curve to shift upward? *

answer

The price of a variable input

question

answer

question

Given the production schedule below, what is the maximum number of workers the firm can hire before the effects of diminishing marginal returns set in? *

answer

question

The vertical distance CF represents the: *

answer

average fixed cost of producing Q1 units of output

question

answer

As output increases, the MC curve slopes upward.

question

Which of the following must be true if at the tenth unit of output, marginal cost ( MC ) is $130 and average total cost ( ATC ) is $150? *

answer

ATC of producing the ninth unit is higher than $150 .

question

Which of the following can cause a firm's Marginal Cost curve to shift downward? *

answer

A decrease in the price of energy

question

Assume that labor is the only variable input. If a firm's short-run marginal cost is increasing as output rises, which of the following must be true? *

answer

Marginal product of labor is decreasing.

question

answer

question

Assume the marginal product of labor first rises, reaches a maximum, and then falls. If the average product of labor is falling, which of the following is true? *

answer

The marginal product of labor must be falling.

question

Which of the following is always true of the relationship between average and marginal costs? *

answer

Average variable costs are increasing when marginal costs are higher than average variable costs.

question

Based on the graph below, at an output of Q1: *

answer

MC is increasing, AVC is decreasing, AFC is decreasing, and ATC is decreasing

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