Question 1

Average fixed costs for a given level of output can be determined graphically by

Accepted Answer

A)   summing the marginal costs of any number of units of output and dividing the sum by that output.
B)   the vertical distance between TC and TVC.
C)   the vertical distance between AVC and MC.
D)   the vertical distance between ATC and AVC.E) All of the above
F) A) and B)

Question 2

Answer the question on the basis of the following information.   Nurrber of  T otal Product  Margirial Product  Workers 00−⋯18821032543053634\begin{array}{|c|c|c|}\hline 	ext { Nurrber of } & 	ext { T otal Product } & 	ext { Margirial Product } \\hline 	ext { Workers } & &  \\hline 0 & 0 & -\cdots \\hline 1 & 8 & 8 \\hline 2 & & 10 \\hline 3 & 25 & \\hline 4 & 30 & \\hline 5 & & 3 \\hline 6 & 34 & \\hline\end{array} Nurrber of  Workers 0123456​ T otal Product 08253034​ Margirial Product −⋯8103​​  When two workers are employed,

Accepted Answer

A)   total product is 20.
B)   total product is 18.
C)   average product is 10.
D)   total product cannot be determined from the information given. E) All of the above
F) B) and C)

Question 3

The long run is a period of time, or a time frame, in which

Accepted Answer

A)   all resources are fixed in quantity.
B)   the level of output is variable.
C)   the amount of all resources can be varied.
D)   the capacity of the production plant is fixed.E) None of the above
F) A) and D)

Question 4

The ability of Intel to spread product development and other "start-up" costs over a larger number of units of output results in

Accepted Answer

A)   economies of scale.
B)   diseconomies of scale.
C)   minimum efficient scale.
D)   constant returns to scale.E) B) and C)
F) B) and D)

Question 5

If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then

Accepted Answer

A)   it is encountering diseconomies of scale.
B)   it is encountering economies of scale.
C)   the law of diminishing returns is taking hold.
D)   the firm's long-run ATC curve will be rising.E) None of the above
F) B) and C)

Question 6

At an output of 1,000 units per year, a firm's variable costs are $5,000 and its average fixed costs are $3. Its total costs per year are

Accepted Answer

A)   $10,000.
B)   $8,000.
C)   $6,000.
D)   $5,000.E) A) and B)
F) A) and C)

Question 7

The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC)  change with output as shown in the accompanying table. Use this information to answer the following question.   Output  TVC 1$302503654855110\begin{array}{|c|c|}\hline 	ext { Output } & 	ext { TVC } \\hline 1 & \$ 30 \\hline 2 & 50 \\hline 3 & 65 \\hline 4 & 85 \\hline 5 & 110 \\hline\end{array} Output 12345​ TVC $30506585110​​  The average fixed cost of 3 units of output is

Accepted Answer

A)   $13.33.
B)   $12.50.
C)   $40.
D)   $18.50. E) A) and B)
F) A) and C)

Exam 9: Businesses and the Costs of Production

The ability of Intel to spread product development and other "start-up" costs over a larger number of units of output results in

Correct Answer
verified

Correct Answer
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At an output of 1,000 units per year, a firm's variable costs are $5,000 and its average fixed costs are $3. Its total costs per year are

Correct Answer
verified

Correct Answer
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If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then

Correct Answer
verified

The long run is a period of time, or a time frame, in which

Correct Answer
verified

Average fixed costs for a given level of output can be determined graphically by

Correct Answer
verified

Exam 9: Businesses and the Costs of Production

The ability of Intel to spread product development and other "start-up" costs over a larger number of units of output results in

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

At an output of 1,000 units per year, a firm's variable costs are $5,000 and its average fixed costs are $3. Its total costs per year are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then

Correct AnswerverifiedShow Answer

The long run is a period of time, or a time frame, in which

Correct AnswerverifiedShow Answer

Average fixed costs for a given level of output can be determined graphically by

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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