Section 10 Test, AP Econ

(Table 55-2: Output and Costs) Using the information in the table, when quantity equals four, total variable cost equals:

48

You own a small deli that produces sandwiches, soups, and other items for customers in your town. Which of the following is a decision most likely to be made in the long run at your deli?

You renovate the second floor of your building to increase the size of the dining room.

(Figure 55-1: Average Total Cost Curve) In the figure, the total cost of producing 10 pairs of boots is approximately:

$1,308

(Table 55-1: Cost Data) The table shows some cost data for a firm currently operating in the short run. What is the value of the total fixed cost for this firm?

$100?

Profit computed using explicit costs as the only measure of costs is:

Accounting profit

(Figure 55-2: Short-Run Costs) The vertical difference between curve B and curve C at any quantity of output is:

Average fixed cost

(Figure 56-1: Long-Run Average Cost) Output per period in the region from 0 to A indicates that a firm's production function is experiencing:

Diseconomies of scale

(Figure 56-1: Long-Run Average Cost) Output per period in the region B to C indicates that a firm's production function is experiencing:

Economies of scale

The total product curve:

is the relationship between output and a variable input for varying levels of a fixed input.?

The short run is always defined as a period that is:

long enough such that output can vary, but plant capacity cannot.

When more labor is hired and the total product of labor curve is rising at an increasing rate, it must be the case that

marginal product of labor is greater than zero and rising.

Firms will continue to produce more units if:

the marginal revenue of producing an additional unit is greater than the marginal cost of producing an additional unit.

The marginal product of labor is:

the slope of the total product of labor curve.