Econ

If marginal cost is GREATER THAN average total cost: A) average total cost is increasing. B) average total cost is decreasing. C) average total cost is unchanged. D) marginal cost is decreasing.

A

The _____ cost curve is NOT affected by diminishing returns. A) average fixed B) average variable C) average total D) marginal

A

Which of the following statements is FALSE? A) When the marginal product of labor is upward-sloping, the marginal cost curve is upward-sloping. B) The average fixed cost curve is downward-sloping and approaches the horizontal axis. C) The marginal cost curve intersects the average variable cost curve at the minimum of average variable cost. D) When the marginal cost curve is above the average cost curve, the average cost curve is upward-sloping

A

(Figure: A Firm's Cost Curves) Look at the figure A Firm's Cost Curves. The curve labeled W represents the firm's _____ cost curve. A) average fixed B) average total C) average variable D) total variable

B

(Figure: Long-Run and Short-Run Average Cost Curves) Look at the figure Long-Run and Short-Run Average Cost Curves. If a firm faced the long-run average total cost curve shown in the figure and it expected to produce 100,000 units of the good in the long run, the firm should build the plant associated with: A) ATC1. B) ATC2. C) ATC3. D) ATC1 or ATC

B

The average total cost curve has a U shape because the ______ effect is dominant at low levels of output, and the _____ effect is dominant at high levels of output. A) diminishing returns; spreading B) spreading; diminishing returns C) comparative advantage; absolute advantage D) absolute advantage; comparative advantage

B

The marginal product of labor is: A) the change in labor divided by the change in total product. B) the slope of the total product of labor curve. C) the change in average product divided by the change in the quantity of labor. D) the change in output that occurs when capital increases by one unit.

B

(Figure: A Firm's Cost Curves) Look at the figure A Firm's Cost Curves. The curve labeled V represents the firm's _____ cost curve. A) total B) average total C) marginal D) average variable

C

The _____ is the increase in output that is produced when a firm hires an additional worker. A) average product B) total product C) marginal product D) marginal cost

C

(Figure: Long-Run and Short-Run Average Cost Curves) Look at the figure Long-Run and Short-Run Average Cost Curves. If a firm is producing at point C on the ATC2 but anticipates increasing output to 225,000 units in the long run, the firm will build a _____ plant and have _____ of scale. A) smaller; economies B) smaller; diseconomies C) bigger; economies D) bigger; diseconomies

D

The long-run average total cost curve is tangent to an infinite number of short-run _____ cost curves. A) total B) marginal C) average variable D) average total

D