Question 1

How would a production function that exhibits decreasing marginal product affect the shape of the total cost curve? Explain or draw a graph.

Accepted Answer

The total cost curve will incr...

Question 2

Scenario 13-20
Suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regardless of the current output level.
-Refer to Scenario 13-20. Average variable cost will be

Accepted Answer

A)  rising at all points.
B)  falling at all points.
C)  U-shaped.
D)  constant.E) A) and B)
F) C) and D)

Question 3

Average total cost will increase if __________.

Accepted Answer

marginal c...

Question 4

Figure 1
b.
Figure 2
c.
Figure 3
d.
Figure 4
ANSWER:
d
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 function
KEYWORDS:
BLOOM'S: Comprehension
CUSTOM ID:
178.13.3 - MC - MANK08
Figure 13-8 
-Refer to Figure 13-8. Which of the following statements is correct?

Accepted Answer

A)  Average total cost is rising for quantities higher than D because marginal cost is higher than average total cost.
B)  Average variable cost is declining for quantities less than B because marginal cost is lower than average variable cost.
C)  Average variable cost is minimized at B because at that quantity, marginal cost equals average variable cost.
D)  All of the above are correct.E) C) and D)
F) None of the above

Question 5

Table 13-14 
-Refer to Table 13-14. What is the average variable cost of producing 3 units of output?

Accepted Answer

A)  $20
B)  $30
C)  $35
D)  $60E) All of the above
F) B) and C)

Question 6

Table 13-3 
-Refer to Table 13-3. The marginal product of the third worker is

Accepted Answer

A)  230 units.
B)  100 units.
C)  77 units.
D)  60 units.E) None of the above
F) A) and B)

Question 7

Total revenue equals

Accepted Answer

A)  marginal revenue - marginal cost.
B)  price/quantity.
C)  price x quantity.
D)  output - input.E) C) and D)
F) B) and D)

Question 8

Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Atul can bottle and sell three cases per week. What is the maximum total output possible if Riva hires Atul?

Accepted Answer

A)  3 cases
B)  4 cases
C)  7 cases
D)  11 casesE) All of the above
F) C) and D)

Question 9

​Economies of scale commonly arise because of coordination problems.

Accepted Answer

A) True 
 B)False

Question 10

Figure 13-5 
-Refer to Figure 13-5. Curve D represents which type of cost curve?

Accepted Answer

A)  marginal cost
B)  average total cost
C)  average variable cost
D)  average fixed costE) None of the above
F) A) and B)

Question 11

Table 13-14 
-Refer to Table 13-14. What is the average total cost of producing 2 units of output?

Accepted Answer

A)  $15
B)  $19
C)  $24
D)  $48E) B) and D)
F) A) and D)

Question 12

Economic profit

Accepted Answer

A)  will never exceed accounting profit.
B)  is most often equal to accounting profit.
C)  is always at least as large as accounting profit.
D)  is a less complete measure of profitability than accounting profit.E) B) and D)
F) A) and B)

Question 13

Describe the difference between the short run and the long run.

Accepted Answer

In the short run, the firm con...

Question 14

Diminishing marginal product suggests that

Accepted Answer

A)  additional units of output become less costly as more output is produced.
B)  marginal cost is upward sloping.
C)  the firm is at full capacity.
D)  adding additional workers will lower total cost.E) C) and D)
F) B) and D)

Question 15

When average cost is greater than marginal cost, marginal cost must be

Accepted Answer

A)  rising.
B)  falling.
C)  constant.
D)  The direction of change in marginal cost cannot be determined from this information.E) A) and C)
F) None of the above

Question 16

Define profit.

Accepted Answer

Profit = T...

Question 17

If marginal cost is greater than average total cost, then

Accepted Answer

A)  profits are increasing.
B)  economies of scale are becoming greater.
C)  average total cost remains constant.
D)  average total cost is increasing.E) C) and D)
F) None of the above

Question 18

Marginal cost equals

Accepted Answer

A)  total cost divided by quantity of output produced.
B)  total output divided by the change in total cost.
C)  the slope of the total cost curve.
D)  the slope of the line drawn from the origin to the total cost curve.E) None of the above
F) A) and B)

Question 19

Can economic profit ever exceed accounting profit?

Accepted Answer

No. Economic profit = Accounting profit ...

Question 20

Scenario 13-8
Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each.
-Refer to Scenario 13-8. What are Wanda's total accounting profits?

Accepted Answer

A)  $150
B)  $126
C)  $96
D)  $24E) A) and C)
F) A) and B)

Exam 13: The Costs of Production

Marginal cost equals

Correct Answer
verified

Scenario 13-20 Suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regardless of the current output level. -Refer to Scenario 13-20. Average variable cost will be

Correct Answer
verified

If marginal cost is greater than average total cost, then

Correct Answer
verified

Economic profit

Correct Answer
verified

When average cost is greater than marginal cost, marginal cost must be

Correct Answer
verified

Can economic profit ever exceed accounting profit?

Correct Answer
verified
No. Economic profit = Accounting profit ...
View Answer

Correct Answer
verified

Correct Answer
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Figure 13-5 -Refer to Figure 13-5. Curve D represents which type of cost curve?

Correct Answer
verified

Define profit.

Correct Answer
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Profit = T...
View Answer

Table 13-14 -Refer to Table 13-14. What is the average total cost of producing 2 units of output?

Correct Answer
verified

Table 13-14 -Refer to Table 13-14. What is the average variable cost of producing 3 units of output?

Correct Answer
verified

Average total cost will increase if __________.

Correct Answer
verified
marginal c...
View Answer

Economies of scale commonly arise because of coordination problems.

Correct Answer
verified

Diminishing marginal product suggests that

Correct Answer
verified

How would a production function that exhibits decreasing marginal product affect the shape of the total cost curve? Explain or draw a graph.

Correct Answer
verified
The total cost curve will incr...
View Answer

Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Atul can bottle and sell three cases per week. What is the maximum total output possible if Riva hires Atul?

Correct Answer
verified

Total revenue equals

Correct Answer
verified

Table 13-3 -Refer to Table 13-3. The marginal product of the third worker is

Correct Answer
verified

Describe the difference between the short run and the long run.

Correct Answer
verified
In the short run, the firm con...
View Answer

Exam 13: The Costs of Production

Marginal cost equals

Correct AnswerverifiedShow Answer

Scenario 13-20 Suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regardless of the current output level. -Refer to Scenario 13-20. Average variable cost will be

Correct AnswerverifiedShow Answer

If marginal cost is greater than average total cost, then

Correct AnswerverifiedShow Answer

Economic profit

Correct AnswerverifiedShow Answer

When average cost is greater than marginal cost, marginal cost must be

Correct AnswerverifiedShow Answer

Can economic profit ever exceed accounting profit?

Correct AnswerverifiedNo. Economic profit = Accounting profit ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 13-5 -Refer to Figure 13-5. Curve D represents which type of cost curve?

Correct AnswerverifiedShow Answer

Define profit.

Correct AnswerverifiedProfit = T...View AnswerShow Answer

Table 13-14 -Refer to Table 13-14. What is the average total cost of producing 2 units of output?

Correct AnswerverifiedShow Answer

Table 13-14 -Refer to Table 13-14. What is the average variable cost of producing 3 units of output?

Correct AnswerverifiedShow Answer

Average total cost will increase if __________.

Correct Answerverifiedmarginal c...View AnswerShow Answer

​Economies of scale commonly arise because of coordination problems.

Correct AnswerverifiedShow Answer

Diminishing marginal product suggests that

Correct AnswerverifiedShow Answer

How would a production function that exhibits decreasing marginal product affect the shape of the total cost curve? Explain or draw a graph.

Correct AnswerverifiedThe total cost curve will incr...View AnswerShow Answer

Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Atul can bottle and sell three cases per week. What is the maximum total output possible if Riva hires Atul?

Correct AnswerverifiedShow Answer

Total revenue equals

Correct AnswerverifiedShow Answer

Table 13-3 -Refer to Table 13-3. The marginal product of the third worker is

Correct AnswerverifiedShow Answer

Describe the difference between the short run and the long run.

Correct AnswerverifiedIn the short run, the firm con...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
No. Economic profit = Accounting profit ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Profit = T...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
marginal c...
View Answer

Economies of scale commonly arise because of coordination problems.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The total cost curve will incr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In the short run, the firm con...
View Answer