Question 1

Total product divided by the variable input is

Accepted Answer

A)  average total cost.
B)  marginal cost.
C)  average physical product.
D)  marginal physical product.E) A) and B)
F) B) and C)

Question 2

When average variable costs are rising,

Accepted Answer

A)  marginal physical product is also rising.
B)  marginal costs is falling.
C)  average physical product is rising.
D)  average physical product is falling.E) A) and B)
F) A) and C)

Question 3

The relationship between inputs and outputs is known as

Accepted Answer

A)  business.
B)  manufacturing.
C)  a production function.
D)  marginal product.E) C) and D)
F) A) and B)

Question 4

Input of Labor  (no. of workers  in weeks)   Total Product  (no. of snowboards  produced)  00130268311041405135\begin{array} { c c } \begin{array} { c } 	ext { Input of Labor } \	ext { (no. of workers } \	ext { in weeks)  }\end{array} & \begin{array} { c } 	ext { Total Product } \	ext { (no. of snowboards } \	ext { produced)  }\end{array} \\hline 0 & 0 \1 & 30 \2 & 68 \3 & 110 \4 & 140 \5 & 135 \\hline\end{array} Input of Labor  (no. of workers  in weeks)  ​012345​ Total Product  (no. of snowboards  produced)  ​03068110140135​​ 
-In the above table,average physical product is 30 snowboards when

Accepted Answer

A)  4 workers are employed.
B)  3 workers are employed.
C)  2 workers are employed.
D)  1 worker is employed. E) C) and D)
F) A) and D)

Question 5

Total product will start to decrease

Accepted Answer

A)  at the quantity where the law of diminishing returns starts.
B)  when average physical product decreases.
C)  when marginal physical product increases.
D)  when marginal physical product becomes negative.E) None of the above
F) A) and C)

Question 6

"Diminishing marginal product is a basic law because new workers are always less qualified than the existing workers." Do you agree or disagree? Explain.

Accepted Answer

Disagree.Diminishing marginal product oc...

Question 7

Which of the following statements is correct?

Accepted Answer

A)  TC = TFC + TVC
B)  TC = average product + marginal product
C)  TC = TFC - TVC
D)  TC = average physical product - marginal physical productE) B) and D)
F) A) and C)

Question 8

What is the difference between average variable costs and average total costs?

Accepted Answer

Average total costs equal average variab...

Question 9

Total Output  Total Costs 0$101182213234245266297338389441051\begin{array} { c c } 	ext { Total Output } & 	ext { Total Costs } \\hline 0 & \$ 10 \1 & 18 \2 & 21 \3 & 23 \4 & 24 \5 & 26 \6 & 29 \7 & 33 \8 & 38 \9 & 44 \10 & 51\end{array} Total Output 012345678910​ Total Costs $1018212324262933384451​​ 
-In the above table,when output is 8 units,average total costs are

Accepted Answer

A)  $4.75.
B)  $3.50.
C)  $38.
D)  $28. E) A) and C)
F) B) and C)

Question 10

The best way to think of the short run and the long run is as

Accepted Answer

A)  specific periods of time,although the time periods may differ across industries.
B)  planning terms that apply to managers.
C)  concepts that apply to all people who work for a firm.
D)  a concept that only accountants are concerned with.E) C) and D)
F) None of the above

Question 11

How is the long-run average cost curve found? What is its importance to the firm?

Accepted Answer

The long-run average cost curve is the l...

Question 12

The typical cost curves are U-shaped due to the

Accepted Answer

A)  law of diminishing marginal utility.
B)  law of supply.
C)  law of demand.
D)  law of diminishing marginal product.E) A) and B)
F) B) and D)

Question 13

A firm has the following production relationship between labor and output,for a fixed capital stock.   Labor  Output 0015211318423526\begin{array} { c r } \hline	ext { Labor } & 	ext { Output } \\hline0 & 0 \1 & 5 \2 & 11 \3 & 18 \4 & 23 \5 & 26\\hline\end{array} Labor 012345​ Output 0511182326​​ 
-According to the above table,what is the average product of labor when five laborers are employed?

Accepted Answer

A)  3
B)  5.2
C)  5.75
D)  6 E) All of the above
F) C) and D)

Question 14

"In the short run,a firm cannot change any of its inputs." Do you agree or disagree? Explain.

Accepted Answer

Disagree.The short run is a pe...

Question 15

When the average physical product is falling,

Accepted Answer

A)  average variable costs are rising.
B)  average fixed costs are rising.
C)  total costs are falling.
D)  average variable costs are falling.E) None of the above
F) A) and D)

Question 16

Recently Apple Computer developed Apple's new iTunes Music Store,which offers more than 200,000 songs from five major record labels,for use with Apple's iPod and iMac.More than a million songs were downloaded the first week alone! In economic terms,CEO Steve Jobs helped convert capital and labor inputs into products consumers use.Any activity that results in the conversion of resources into products that can be used in consumption is

Accepted Answer

A)  not profitable.
B)  a start up venture.
C)  demand.
D)  production.E) C) and D)
F) None of the above

Question 17

Which of the following would be a fixed input for an amusement park?

Accepted Answer

A)  Ticket takers
B)  Unpopped popcorn
C)  Concession workers
D)  The roller coasterE) B) and D)
F) B) and C)

Question 18

The time period during which a firm's capital is fixed but its labor is variable is called

Accepted Answer

A)  the planning horizon.
B)  the short run.
C)  the long run.
D)  the very long run.E) A) and C)
F) B) and C)

Question 19

When total product is increasing at an increasing rate,marginal product is

Accepted Answer

A)  positive and increasing.
B)  positive and decreasing.
C)  constant.
D)  negative.E) A) and C)
F) C) and D)

Question 20

-Refer to the above figure.Average variable costs are represented by curve

Accepted Answer

A)  1.
B)  2.
C)  3.
D)  4.E) A) and B)
F) All of the above

Exam 9: The Firm: Cost and Output Determination

$\begin{array} { c c } \text { Total Output } & \text { Total Costs } \\\hline 0 & \$ 10 \\1 & 18 \\2 & 21 \\3 & 23 \\4 & 24 \\5 & 26 \\6 & 29 \\7 & 33 \\8 & 38 \\9 & 44 \\10 & 51\end{array}$ -In the above table,when output is 8 units,average total costs are

Correct Answer
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"Diminishing marginal product is a basic law because new workers are always less qualified than the existing workers." Do you agree or disagree? Explain.

Correct Answer
verified
Disagree.Diminishing marginal product oc...
View Answer

The time period during which a firm's capital is fixed but its labor is variable is called

Correct Answer
verified

Correct Answer
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Correct Answer
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-Refer to the above figure.Average variable costs are represented by curve

Correct Answer
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When the average physical product is falling,

Correct Answer
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Correct Answer
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Which of the following statements is correct?

Correct Answer
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Total product divided by the variable input is

Correct Answer
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When average variable costs are rising,

Correct Answer
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Which of the following would be a fixed input for an amusement park?

Correct Answer
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What is the difference between average variable costs and average total costs?

Correct Answer
verified
Average total costs equal average variab...
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The best way to think of the short run and the long run is as

Correct Answer
verified

Total product will start to decrease

Correct Answer
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"In the short run,a firm cannot change any of its inputs." Do you agree or disagree? Explain.

Correct Answer
verified
Disagree.The short run is a pe...
View Answer

The typical cost curves are U-shaped due to the

Correct Answer
verified

When total product is increasing at an increasing rate,marginal product is

Correct Answer
verified

The relationship between inputs and outputs is known as

Correct Answer
verified

How is the long-run average cost curve found? What is its importance to the firm?

Correct Answer
verified
The long-run average cost curve is the l...
View Answer

Exam 9: The Firm: Cost and Output Determination

Correct AnswerverifiedShow Answer

"Diminishing marginal product is a basic law because new workers are always less qualified than the existing workers." Do you agree or disagree? Explain.

Correct AnswerverifiedDisagree.Diminishing marginal product oc...View AnswerShow Answer

The time period during which a firm's capital is fixed but its labor is variable is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

-Refer to the above figure.Average variable costs are represented by curve

Correct AnswerverifiedShow Answer

When the average physical product is falling,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Total product divided by the variable input is

Correct AnswerverifiedShow Answer

When average variable costs are rising,

Correct AnswerverifiedShow Answer

Which of the following would be a fixed input for an amusement park?

Correct AnswerverifiedShow Answer

What is the difference between average variable costs and average total costs?

Correct AnswerverifiedAverage total costs equal average variab...View AnswerShow Answer

The best way to think of the short run and the long run is as

Correct AnswerverifiedShow Answer

Total product will start to decrease

Correct AnswerverifiedShow Answer

"In the short run,a firm cannot change any of its inputs." Do you agree or disagree? Explain.

Correct AnswerverifiedDisagree.The short run is a pe...View AnswerShow Answer

The typical cost curves are U-shaped due to the

Correct AnswerverifiedShow Answer

When total product is increasing at an increasing rate,marginal product is

Correct AnswerverifiedShow Answer

The relationship between inputs and outputs is known as

Correct AnswerverifiedShow Answer

How is the long-run average cost curve found? What is its importance to the firm?

Correct AnswerverifiedThe long-run average cost curve is the l...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
Disagree.Diminishing marginal product oc...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Average total costs equal average variab...
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Disagree.The short run is a pe...
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The long-run average cost curve is the l...
View Answer