MicroEconomics M05 - A quiz. economics

B. 1,500 to 3,500

Plant sizes get larger as you move from ATC-1 to ATC-4. Output ATC-1 ATC-2 ATC-3 ATC-4 1,500 $10 15 $20 $30 2,0008121725 2,5009101520 3,0001281318 3,5001561116 4,0001810914 4,5002012712 5,00024151110 5,5002919138 6,0003525159 Over what range of output are economies of scale experienced by this firm? A. 1,500 to 3,000 B. 1,500 to 3,500 C. 2,000 to 3,500 D. 2,000 to 4,000

4,000 to 4,500

Plant sizes get larger as you move from ATC-1 to ATC-4. Output ATC-1 ATC-2 ATC-3 ATC-4 1,500 $10 15 $20 $30 2,000 8 12 17 25 2,500 9 10 15 20 3,000 12 8 13 18 3,500 15 6 11 16 4,000 18 10 9 14 4,500 20 12 7 12 5,000 24 15 11 10 5,500 29 19 13 8 6,000 35 25 15 In the long run, the firm should use plant size ATC-3 for what level of output?

why the firm's long-run average total cost curve is U-shaped.

Economies and diseconomies of scale explain

average total cost curve to fall.

If a technological advance increases a firm's labor productivity, we would expect its

the former refer to nonexpenditure costs and the latter to monetary payments.

Implicit and explicit costs are different in that

Q3 units of labor.

In the diagram, total product will be at a maximum at

Marginal cost intersects average total cost at the latter's minimum point.

Which of the following is correct as it relates to cost curves?

all inputs to the learning process except for study time must be assumed to be fixed.

(Consider This) In order to apply the concept of diminishing returns to study time,

C. marginal cost reaches a minimum where marginal product is at its maximum.

(figure A .. output; figure B .. costs) Refer to the short-run production and cost data. The curves of Figures A and B suggest that A. marginal product and marginal cost reach their maximum points at the same output. B. AVC cuts MC at the latter's minimum point. C. marginal cost reaches a minimum where marginal product is at its maximum. D. marginal cost and marginal product reach their minimum points at the same output.

B. $260 - THIS ANSWER WAS INCORRECT. DO NOT CHOOSE. EDIT: MOST LIKELY ANSWER: C. $310 (chegg)

Answer the question on the basis of the following cost data. Output/Average Fixed Cost/Average Variable Cost 1 $50.00 $100.00 2 25.00 80.00 3 16.67 66.67 4 12.50 65.00 5 10.00 68.00 6 8.37 73.33 7 7.14 80.00 8 6.25 87.50 The total cost of four units of output is A. $215. B. $260. C. $310. D. $77.50.

C. Marginal cost at Q2 is the slope of line CB.

Based on the diagram provided, which of the following statements is true? A. Marginal cost at Q1 is the slope of line 0A. B. Average total cost at Q1 is the slope of line AB. C. Marginal cost at Q2 is the slope of line CB. Correct D. Average total cost at Q2 is the slope of line 0A.

False

Economic profits are usually larger than accounting profits.

in the range of diseconomies of scale.

The ABC Corporation decreases all of its inputs by 12 percent and finds that its output falls by only 8 percent. This means that initially it was producing

$500.

The fixed cost of the firm is $500. The firm's total variable cost is indicated in the table. Output/Total Variable Cost 1$ 400 2 720 3 1,000 4 1,400 5 2,000 6 3,600 The average total cost of the firm when 3 units of output are being produced is

A. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.

The law of diminishing returns indicates that A. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point. B. the demand for goods produced by purely competitive industries is downsloping. C. beyond some point, the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction. D. because of economies and diseconomies of scale, a competitive firm's long-run average total cost curve will be U-shaped.

C. fixed plant capacity.

The short run is characterized by A. plenty of time for firms to either enter or leave the industry. B. zero fixed costs. C. fixed plant capacity. D. increasing but not diminishing returns.

its average total costs will decline if it reduces its scale of operations

When a firm is experiencing diseconomies of scale,

D. Economic profit = accounting profit − implicit costs.

Which of the following definitions is correct? A. Economic profit − accounting profit = explicit costs. B. Accounting profit + economic profit = normal profit. C. Economic profit − implicit costs = accounting profits. D. Economic profit = accounting profit − implicit costs.

A. Where total product is at a maximum, average product is also at a maximum.

Which of the following is not correct? A. Where total product is at a maximum, average product is also at a maximum. B. Where marginal product is zero, total product is at a maximum. (Incorrect) C. Where marginal product is greater than average product, average product is rising. D. Marginal product becomes negative before average product becomes negative.