ECO chp5

What is the marginal cost of the 40th pair of jeans in Table 5.2?

$11.00

In Table 5.3, marginal cost per yearbook, between 100 and 200 yearbooks is equal to:

$4.

In Table 5.5, the total variable cost of the first unit is:

$9.

Which of the following are factors of production for Terry's Taco Patio?

Corn tortillas and meat

The maximum output that can be produced from a set of inputs is measured by:

The production function.

The sum of fixed cost and variable cost at any rate of output is equal to:

Total cost.

If price is greater than marginal cost but not average total cost, then:

Eventually the firm will go out of business.

The decision to build, buy, or lease a plant is known as the:

Investment decision.

Which of the following is most likely a variable cost in the short run?

Labor

Ceteris paribus, the law of diminishing returns states that beyond some point the:

Marginal physical product of a variable input declines as more of it is used.

The change in total output that results from one additional unit of input is the:

Marginal physical product.

When a firm produces a level of output on the production function:

Maximum efficiency is achieved.

Marginal cost:

May initially decline and then increases as more output is produced.

In Table 5.4, the marginal cost is at a minimum when:

Output increases from 10 units to 20 units.

Total revenue minus total cost equals:

Profit.