Question 1

How long does it take a firm to go from the short run to the long run?

Accepted Answer

A)  six months
B)  one year
C)  two years
D)  It depends on the nature of the firm.E) A) and B)
F) A) and C)

Question 2

Scenario 13-11
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each.
-Refer to Scenario 13-11. An economist would calculate the total cost for one birdhouse to be

Accepted Answer

A)  $5.
B)  $8.
C)  $9.
D)  $13.E) None of the above
F) C) and D)

Question 3

Figure 13-3 
-Refer to Figure 13-3. Assuming that the firm depicted produces cookies, which of the statements below is most consistent with the shape of the total cost curve?

Accepted Answer

A)  Producing an additional cookie is always more costly than producing the previous cookie.
B)  Total production of cookies decreases with additional units of input.
C)  Producing additional cookies is equally costly, regardless of how many cookies are already being produced.
D)  Producing additional cookies becomes increasingly costly only when the number of cookies already being produced is large.E) B) and C)
F) A) and D)

Question 4

Table 13-11 
-Refer to Table 13-11. The marginal cost of producing the 6th poster is

Accepted Answer

A)  $1.00.
B)  $3.50.
C)  $5.00.
D)  $6.00.E) A) and B)
F) A) and C)

Question 5

Which of the following statements is not correct?

Accepted Answer

A)  The marginal cost of the fifth unit of output equals the total cost of five units minus the total cost of four units.
B)  The total variable cost of seven units equals the average variable cost of seven units times seven.
C)  If marginal cost is rising, then average variable cost must be rising.
D)  The marginal cost of the fifth unit of output equals the total variable cost of five units minus the total variable cost of four units.E) A) and B)
F) A) and C)

Question 6

Table 13-14 
-Refer to Table 13-14. What is the average fixed cost of producing 8 units of output?

Accepted Answer

A)  $1.25
B)  $3.13
C)  $20.00
D)  $24.37E) A) and D)
F) A) and C)

Question 7

Cindy's Car Wash has average variable costs of $2 and average total costs of $3 when it produces 100 units of output (car washes) . The firm's total variable cost is

Accepted Answer

A)  $100.
B)  $200.
C)  $300.
D)  $500.E) B) and D)
F) A) and C)

Question 8

Table 13-11 
-Refer to Table 13-11. What is the variable cost of producing 0 posters?

Accepted Answer

A)  $0
B)  $1
C)  $10
D)  $100E) A) and B)
F) A) and C)

Question 9

Variable costs equal fixed costs when nothing is produced.

Accepted Answer

A) True 
 B)False

Question 10

Table 13-2 
-Refer to Table 13-2. What is the marginal product of the second worker?

Accepted Answer

A)  300 units
B)  200 units
C)  100 units
D)  50 unitsE) A) and D)
F) A) and C)

Question 11

Variable cost divided by the change in quantity produced is

Accepted Answer

A)  average variable cost.
B)  marginal cost.
C)  average total cost.
D)  None of the above is correct.E) A) and B)
F) All of the above

Question 12

Economists normally assume that the goal of a firm is to

Accepted Answer

A)  maximize its total revenue.
B)  maximize its profit.
C)  minimize its explicit costs.
D)  minimize its total cost.E) All of the above
F) B) and C)

Question 13

As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters

Accepted Answer

A)  economies of scale.
B)  diseconomies of scale.
C)  increasing marginal product.
D)  diminishing marginal product.E) B) and D)
F) None of the above

Question 14

An example of an explicit cost would be the wages that a business owner pays her employees.

Accepted Answer

A) True 
 B)False

Question 15

Figure 1
b.
Figure 2
c.
Figure 3
d.
Figure 4
ANSWER:
b
DIFFICULTY:
Moderate
LEARNING OBJECTIVES:
ECON.MANK.174 - Given a graph of the production function and input costs, derive the firm's total-cost curve.
TOPICS:
Producer theory
Production costs
KEYWORDS:
BLOOM'S: Comprehension
CUSTOM ID:
176.13.3 - MC - MANK08
-Refer to Figure 13-7. Which of the figures represents the marginal cost curve for a typical firm?

Accepted Answer

A)   Figure 1
B)   Figure 2
C)   Figure 3
D)   Figure 4E) A) and B)
F) A) and C)

Question 16

Johnny is a sophomore in college and has a 1.5 cumulative grade point average (GPA) . Johnny's cumulative GPA will fall even further next semester if he performs worse than (i) 
His cumulative GPa.(ii) 
He ever performed before.(iii) 
He did last semester.

Accepted Answer

A)  (i)  and (ii)  only
B)  (i)  and (iii)  only
C)  (ii)  and (iii)  only
D)  (i) , (ii) , and (iii) E) A) and B)
F) A) and D)

Question 17

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. At levels of output between M and N, the firm experiences

Accepted Answer

A)  economies of scale.
B)  diseconomies of scale.
C)  constant returns to scale.
D)  both the benefits of specialization and diminishing marginal productivity.E) C) and D)
F) None of the above

Question 18

Which of the following can be added to profit to obtain total revenue?

Accepted Answer

A)  net profit
B)  capital profit
C)  operational profit
D)  total costE) A) and B)
F) A) and C)

Question 19

Table 13-7
The Flying Elvis Copter Rides 
-Refer to Table 13-7. What is the value of I?

Accepted Answer

A)  $110
B)  $120
C)  $220
D)  $270E) A) and D)
F) C) and D)

Question 20

Scenario 13-14
If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he plants 2 bags, he gets 9 bushels. If he plants 3 bags, he gets 12 bushels. A bag of seeds costs $120, and seeds are his only cost.
-Refer to Scenario 13-14. Farmer Brown's production function exhibits

Accepted Answer

A)  increasing marginal product.
B)  constant marginal product.
C)  diminishing marginal product.
D)  The production function is unrelated to the marginal product.E) A) and B)
F) B) and D)

Exam 13: The Costs of Production

Cindy's Car Wash has average variable costs of $2 and average total costs of $3 when it produces 100 units of output (car washes) . The firm's total variable cost is

Correct Answer
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Table 13-2 -Refer to Table 13-2. What is the marginal product of the second worker?

Correct Answer
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Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. At levels of output between M and N, the firm experiences

Correct Answer
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Table 13-14 -Refer to Table 13-14. What is the average fixed cost of producing 8 units of output?

Correct Answer
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Table 13-7 The Flying Elvis Copter Rides -Refer to Table 13-7. What is the value of I?

Correct Answer
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Variable costs equal fixed costs when nothing is produced.

Correct Answer
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How long does it take a firm to go from the short run to the long run?

Correct Answer
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As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters

Correct Answer
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Which of the following statements is not correct?

Correct Answer
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Table 13-11 -Refer to Table 13-11. The marginal cost of producing the 6th poster is

Correct Answer
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Which of the following can be added to profit to obtain total revenue?

Correct Answer
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An example of an explicit cost would be the wages that a business owner pays her employees.

Correct Answer
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Variable cost divided by the change in quantity produced is

Correct Answer
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Economists normally assume that the goal of a firm is to

Correct Answer
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Correct Answer
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Figure 13-3 -Refer to Figure 13-3. Assuming that the firm depicted produces cookies, which of the statements below is most consistent with the shape of the total cost curve?

Correct Answer
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Johnny is a sophomore in college and has a 1.5 cumulative grade point average (GPA) . Johnny's cumulative GPA will fall even further next semester if he performs worse than (i) His cumulative GPa.(ii) He ever performed before.(iii) He did last semester.

Correct Answer
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Table 13-11 -Refer to Table 13-11. What is the variable cost of producing 0 posters?

Correct Answer
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Exam 13: The Costs of Production

Cindy's Car Wash has average variable costs of $2 and average total costs of $3 when it produces 100 units of output (car washes) . The firm's total variable cost is

Correct AnswerverifiedShow Answer

Table 13-2 -Refer to Table 13-2. What is the marginal product of the second worker?

Correct AnswerverifiedShow Answer

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. At levels of output between M and N, the firm experiences

Correct AnswerverifiedShow Answer

Table 13-14 -Refer to Table 13-14. What is the average fixed cost of producing 8 units of output?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 13-7 The Flying Elvis Copter Rides -Refer to Table 13-7. What is the value of I?

Correct AnswerverifiedShow Answer

Variable costs equal fixed costs when nothing is produced.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How long does it take a firm to go from the short run to the long run?

Correct AnswerverifiedShow Answer

As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Table 13-11 -Refer to Table 13-11. The marginal cost of producing the 6th poster is

Correct AnswerverifiedShow Answer

Which of the following can be added to profit to obtain total revenue?

Correct AnswerverifiedShow Answer

An example of an explicit cost would be the wages that a business owner pays her employees.

Correct AnswerverifiedShow Answer

Variable cost divided by the change in quantity produced is

Correct AnswerverifiedShow Answer

Economists normally assume that the goal of a firm is to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 13-3 -Refer to Figure 13-3. Assuming that the firm depicted produces cookies, which of the statements below is most consistent with the shape of the total cost curve?

Correct AnswerverifiedShow Answer

Johnny is a sophomore in college and has a 1.5 cumulative grade point average (GPA) . Johnny's cumulative GPA will fall even further next semester if he performs worse than (i) His cumulative GPa.(ii) He ever performed before.(iii) He did last semester.

Correct AnswerverifiedShow Answer

Table 13-11 -Refer to Table 13-11. What is the variable cost of producing 0 posters?

Correct AnswerverifiedShow Answer

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