T/f part 2

When average total cost rises if a producer either increases or decreases production, then the firm is said to be operating at efficient scale.

True

As a firm moves along its long run average cost curve, its adjusting the size of its factory to the quantity of production.

True

Average total cost and marginal cost are merely ways to express information that is already contained in a firms' total cost.

True

Average total cost reveals how much total cost will change as the firm alters its level of production.

False

Dis economies of scale often arise because higher production levels allow specialization among workers.

False

Fixed costs are those costs that remain fixed no matter how long the time horizon is.

False

In the long run, a factory is usually considered a fixed input.

False

The fact that many decisions are fixed in the short run but variable in the long run has little impact on the firm's cost curves.

False

In some cases, specialization allows larger factories to produce goods at a lower average cost than smaller factories.

True

The average total cost curve reflects the shape of both the average fixed cost and average variable cost curve.

True

The marginal cost curve intersects the average total cost curve at the minimum point of the average total cost curve.

True

The use of specialization to achieve economies of scale is one reason modern societies are as prosperous as they are.

True

Because of the greater flexibility that firms have in the long run, all short run cost curves lie on or above the long run curve,

true

The shape of the marginal cost curve tells a producer something about the marginal product of her workers.

true

Assume jack received all A's in his classes first semester. If Jack gets all C's in his classes this semester, his GPA may or may not fall.

Tru

A second or third worker may have a higher marginal product than the first worker in certain circumstances.

True