Question 1

Production of bagels  Number of  Workers  Thousands of  Bagels  Per Period  Per Period 0015215330442551657760850957\begin{array}{l}	ext { Production of bagels }\\begin{array} { c c } \begin{array} { c } 	ext { Number of } \	ext { Workers }\end{array} & \begin{array} { c } 	ext { Thousands of } \	ext { Bagels }\end{array} \	ext { Per Period } & 	ext { Per Period } \0 & 0 \1 & 5 \2 & 15 \3 & 30 \4 & 42 \5 & 51 \6 & 57 \7 & 60 \8 & 50 \9 & 57\end{array}\end{array} Production of bagels  Number of  Workers ​ Per Period 0123456789​ Thousands of  Bagels ​ Per Period 051530425157605057​​ 
-(Exhibit: Production of Bagels) The marginal product of the third worker is:

Accepted Answer

A)  9,000.
B)  10,000.
C)  12,000.
D)  15,000. E) A) and B)
F) All of the above

Question 2

When diseconomies of scale outweigh economies of scale, the long-run average cost curve rises.

Accepted Answer

A) True 
 B)False

Question 3

Marginal cost _______ over the range of _______ , then _______ over the range of _______ .

Accepted Answer

A)  falls; increasing marginal returns; rises; diminishing marginal returns
B)  rises; increasing marginal returns; falls; diminishing marginal returns
C)  falls; decreasing returns; rises; increasing returns
D)  rises; diminishing marginal returns; falls; constant marginal returnsE) A) and C)
F) C) and D)

Question 4

Reference: 837 2 units of labor and producing at point B on the total product curve, hiring more units of labor would result in which of the following statements being true? A) The marginal product of labor is rising. B) The marginal product of labor is negative. C) Total product is negative. D) Average product is negative." class="answers-bank-image d-inline" rel="preload" >
-(Exhibit: Total Product) After hiring L2 units of labor and producing at point B on the total product curve, hiring more units of labor would result in which of the following statements being true?

Accepted Answer

A)  The marginal product of labor is rising.
B)  The marginal product of labor is negative.
C)  Total product is negative.
D)  Average product is negative.E) B) and D)
F) A) and B)

Question 5

The sum of fixed and variable costs is:

Accepted Answer

A)  total cost.
B)  marginal cost.
C)  variable cost.
D)  average cost.E) All of the above
F) B) and D)

Question 6

A firm becomes more capital intensive if it increases the ratio of capital to labor.

Accepted Answer

A) True 
 B)False

Question 7

The costs associated with the use of fixed factors of production are:

Accepted Answer

A)  total costs.
B)  marginal costs.
C)  variable costs.
D)  fixed costs.E) B) and C)
F) A) and B)

Question 8

At 20 units of output, a firm finds that its average variable cost is $5 per unit and its average total cost is $8 per unit.Therefore, its:

Accepted Answer

A)  marginal cost is less than $3 per unit.
B)  marginal cost is $3 per unit.
C)  average fixed cost is $3 per unit.
D)  marginal cost is equal to its average fixed cost.E) B) and C)
F) A) and B)

Question 9

Marginal product is the change is labor divided by the change in output.

Accepted Answer

A) True 
 B)False

Question 10

Increasing marginal returns for the first four units of a variable input is exhibited by the total product sequence:

Accepted Answer

A)  50, 50, 50, 50.
B)  50, 40, 30, 20.
C)  50, 110, 180, 260.
D)  50, 100, 150, 200.E) None of the above
F) A) and B)

Question 11

The slope of the total cost curve is:

Accepted Answer

A)  average fixed cost.
B)  average total cost.
C)  average variable cost.
D)  marginal cost.E) B) and C)
F) A) and B)

Question 12

-(Exhibit: Short-Run Costs) At 6 units of output, average total cost is approximately:

Accepted Answer

A)  $50.
B)  $70.
C)  $120.
D)  $150.E) A) and B)
F) A) and C)

Question 13

Average total cost is:

Accepted Answer

A)  the change in cost divided by the change in quantity.
B)  total cost divided by quantity.
C)  the change in quantity divided by the change in costs.
D)  total cost times quantity.E) None of the above
F) All of the above

Question 14

If a firm experiences lower costs per unit as it increases production in the long run, this is an example of:

Accepted Answer

A)  economies of scale.
B)  diseconomies of scale.
C)  increasing opportunity costs.
D)  scale reduction.E) A) and D)
F) None of the above

Question 15

If marginal product is less than average product, average product must be falling.

Accepted Answer

A) True 
 B)False

Question 16

If marginal cost is less than average total cost, then:

Accepted Answer

A)  average total cost is increasing.
B)  average total cost is decreasing.
C)  marginal cost is necessarily increasing.
D)  marginal cost is necessarily decreasing.E) B) and D)
F) All of the above

Question 17

Suppose that the units of variable input in a coal-production process are 1, 2, 3, 4, and 5, and the corresponding total outputs per period are 10, 15, 19, 22, and 24 tons, respectively.The marginal product of the third unit of input is _______ tons per period.

Accepted Answer

A)  3
B)  4
C)  15
D)  19E) A) and C)
F) A) and B)

Question 18

In the second of the three ranges of production:

Accepted Answer

A)  the total product curve has an increasing slope.
B)  the marginal product curve has a negative slope.
C)  the marginal product curve intersects the total product curve.
D)  marginal product is negative.E) A) and D)
F) All of the above

Question 19

A firm that is able to more efficiently utilize by-products as it increases production in the long run is an example of:

Accepted Answer

A)  economies of scale.
B)  diseconomies of scale.
C)  labor-intensive production.
D)  capital-intensive production.E) A) and B)
F) All of the above

Question 20

Diminishing marginal returns for the first four units of a variable input is exhibited by the total product sequence:

Accepted Answer

A)  5, 4, 3, 2.
B)  5, 5, 5, 5.
C)  5, 9, 12, 14.
D)  5, 10, 15, 20.E) B) and C)
F) All of the above

Exam 8: Economic Growth

When diseconomies of scale outweigh economies of scale, the long-run average cost curve rises.

Correct Answer
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Average total cost is:

Correct Answer
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Diminishing marginal returns for the first four units of a variable input is exhibited by the total product sequence:

Correct Answer
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Reference: 837 -(Exhibit: Total Product) After hiring L₂ units of labor and producing at point B on the total product curve, hiring more units of labor would result in which of the following statements being true?

Correct Answer
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A firm becomes more capital intensive if it increases the ratio of capital to labor.

Correct Answer
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In the second of the three ranges of production:

Correct Answer
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If marginal cost is less than average total cost, then:

Correct Answer
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If marginal product is less than average product, average product must be falling.

Correct Answer
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A firm that is able to more efficiently utilize by-products as it increases production in the long run is an example of:

Correct Answer
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The slope of the total cost curve is:

Correct Answer
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The costs associated with the use of fixed factors of production are:

Correct Answer
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-(Exhibit: Short-Run Costs) At 6 units of output, average total cost is approximately:

Correct Answer
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At 20 units of output, a firm finds that its average variable cost is $5 per unit and its average total cost is $8 per unit.Therefore, its:

Correct Answer
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Marginal cost ___ over the range of _ , then _ over the range of ___ .

Correct Answer
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The sum of fixed and variable costs is:

Correct Answer
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Suppose that the units of variable input in a coal-production process are 1, 2, 3, 4, and 5, and the corresponding total outputs per period are 10, 15, 19, 22, and 24 tons, respectively.The marginal product of the third unit of input is _______ tons per period.

Correct Answer
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Marginal product is the change is labor divided by the change in output.

Correct Answer
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Increasing marginal returns for the first four units of a variable input is exhibited by the total product sequence:

Correct Answer
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If a firm experiences lower costs per unit as it increases production in the long run, this is an example of:

Correct Answer
verified

Exam 8: Economic Growth

When diseconomies of scale outweigh economies of scale, the long-run average cost curve rises.

Correct AnswerverifiedShow Answer

Average total cost is:

Correct AnswerverifiedShow Answer

Diminishing marginal returns for the first four units of a variable input is exhibited by the total product sequence:

Correct AnswerverifiedShow Answer

Reference: 837 -(Exhibit: Total Product) After hiring L2 units of labor and producing at point B on the total product curve, hiring more units of labor would result in which of the following statements being true?

Correct AnswerverifiedShow Answer

A firm becomes more capital intensive if it increases the ratio of capital to labor.

Correct AnswerverifiedShow Answer

In the second of the three ranges of production:

Correct AnswerverifiedShow Answer

If marginal cost is less than average total cost, then:

Correct AnswerverifiedShow Answer

If marginal product is less than average product, average product must be falling.

Correct AnswerverifiedShow Answer

A firm that is able to more efficiently utilize by-products as it increases production in the long run is an example of:

Correct AnswerverifiedShow Answer

The slope of the total cost curve is:

Correct AnswerverifiedShow Answer

The costs associated with the use of fixed factors of production are:

Correct AnswerverifiedShow Answer

-(Exhibit: Short-Run Costs) At 6 units of output, average total cost is approximately:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

At 20 units of output, a firm finds that its average variable cost is $5 per unit and its average total cost is $8 per unit.Therefore, its:

Correct AnswerverifiedShow Answer

Marginal cost _______ over the range of _______ , then _______ over the range of _______ .

Correct AnswerverifiedShow Answer

The sum of fixed and variable costs is:

Correct AnswerverifiedShow Answer

Suppose that the units of variable input in a coal-production process are 1, 2, 3, 4, and 5, and the corresponding total outputs per period are 10, 15, 19, 22, and 24 tons, respectively.The marginal product of the third unit of input is _______ tons per period.

Correct AnswerverifiedShow Answer

Marginal product is the change is labor divided by the change in output.

Correct AnswerverifiedShow Answer

Increasing marginal returns for the first four units of a variable input is exhibited by the total product sequence:

Correct AnswerverifiedShow Answer

If a firm experiences lower costs per unit as it increases production in the long run, this is an example of:

Correct AnswerverifiedShow Answer

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Reference: 837 -(Exhibit: Total Product) After hiring L₂ units of labor and producing at point B on the total product curve, hiring more units of labor would result in which of the following statements being true?

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Marginal cost ___ over the range of _ , then _ over the range of ___ .

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