CH 13 Micro

Refer to Table 13-7. What is the value of C? Question options: a. $25 b. $50 c. $100 d. $200

$100

The following table shows the production costs for The Flying Elvis Copter Rides. ​ ​Refer to Table 13-7. What is the value of F? Question options: a. $50 b. $100 c. $150 d. $200

$150

When a firm experiences constant returns to scale, long-run average total cost is unchanged, even when output increases. long-run marginal cost is greater than long-run average total cost. long-run marginal cost is less than long-run average total cost. the firm is experiencing coordination problems.

long-run average total cost is unchanged, even when output increases.

If long-run average total cost decreases as the quantity of output increases, the firm is experiencing Question options: a. economies of scale. b. diseconomies of scale. c. coordination problems arising from the large size of the firm. d. fixed costs greatly exceeding variable costs.

economies of scale.

Total revenue equals... a. price × quantity. b. price/quantity. c. (price × quantity) − total cost. d. output − input.

price x quantity

An example of an explicit cost of production would be the Question options: a. cost of forgone labor earnings for an entrepreneur. b. lost opportunity to invest in capital markets when the money is invested in one's business. c. lease payments for the land on which a firm's factory stands. d. value of the time the business could've spent producing something else.

lease payments for the land on which a firm's factory stands.

The minimum points of the average variable cost and average total cost curves occur where the... a. marginal cost curve lies below the average variable cost and average total cost curves. b. marginal cost curve intersects those curves. c. average variable cost and average total cost curves intersect. d. slope of total cost is the smallest.

marginal cost curve intersects those curves.

Refer to Table 13-9. The average total cost of producing 240 units is Question options: a. $0.13. b. $0.19. c. $0.32. d. $0.80.

$0.19.

Scenario 13-2 Kachina is a senior majoring in graphic design at Awesome University (AU). While she has been attending college, Kachina started a computer consulting business to help senior citizens learn how to use their iPads. Kachina charges $25 per hour for her consulting services. She also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department pays Kachina $20 per hour. Refer to Scenario 13-2. If Kachina can work additional hours at either job, what is the opportunity cost if she spends one hour reading a novel? Question options: a. $20 b. $25 c. $100 d. $125

$25

The Three Amigo's company produced and sold 500 dog beds. The average cost of production per dog bed was $50. Each dog bed can be sold for a price of $65. The Three Amigos total costs are Question options: a. $7,500. b. $25,000. c. $32,500. d. $67,500.

$25,000

Refer to Table 13-8. What is the average variable cost of producing 5 units of output? Question options: a. $4 b. $5 c. $40 d. $44

$40

Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 12, Q = 122) and (L = 13, Q = 130). Then the marginal product of the 13th worker is Question options: a. 8 units of output. b. 10 units of output. c. 122 units of output. d. 132 units of output.

8 units of output

Refer to Figure 13-5. Which of the following statements is correct? a. Marginal 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. Marginal cost is minimized at B because at that quantity, marginal cost equals average variable cost. d. Average total cost is declining for quantities less than C because average variable cost is less than average total cost.

Average variable cost is declining for quantities less than B because marginal cost is lower than average variable cost.

Bev is opening her own court-reporting business. She financed the business by withdrawing money from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned $300 in interest next year. If Bev hadn't opened her own business, she would have earned a salary of $25,000. In her first year, Bev's revenues were $30,000, and she spent $1,000 on materials and supplies. Which of the following statements is correct? a. Bev's total explicit costs are $26,300. b. Bev's total implicit costs are $300. c. Bev's accounting profits exceed her economic profits by $300. d. Bev's economic profit is $3,700.

Bev's economic profit is $3,700.

Refer to Table 13-11. Which firm is experiencing diseconomies of scale? Question options: a. Firm A only b. Firm B only c. Firm C only d. Firm A and Firm B only

Firm C only.

If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would Question options: a. slope downward. b. be horizontal. c. slope upward. d. slope downward for low output levels and upward for high output levels.

be horizontal.

Refer to Figure 13-6. At levels of output between M and N, the firm experiences Question options: a. economies of scale. b. diseconomies of scale. c. constant returns to scale. d. both the benefits of specialization and diminishing marginal productivity.

constant returns to scale.

Refer to Table 13-9. The marginal products of hiring additional workers are increasing at an increasing rate. increasing at a decreasing rate. decreasing. constant.

decreasing.