Chapter 11 - Quiz 9
all inputs can be varied
A characteristic of the long run is
it can produce more output using the same inputs
A firm has successfully adopted a positive technological change when
a cost that involves spending money
An explicit cost is defined as
economic costs add the opportunity costs of a firm using its own resources while accounting costs do not
Economic costs of production differ from accounting costs in that
changes output by an amount smaller than the output added by the previous unity of labor
Diminishing marginal product of labor occurs when adding another unit of labor
the marginal product of the 5th worker is negative
Gertrude Stork's Chocolate Shoppe normally employs 4 workers. When the Chocolate Shoppe hired a 5th worker the Shoppe's total output decreased. Therefore
5 units
If 11 workers can produce a total of 54 units of product and a 12th worker has a marginal product of 6 units, then the average product of 12 workers is
marginal product could either be increasing or decreasing
If marginal product is greater than average product, then
each new worker hired adds more to output than previous hires
If production displays increasing marginal returns, then
the division of labor and specialization
Increase in the marginal product of labor result from
True
TRUE/FALSE: The average product of labor is at its maximum when the average product of labor equals the marginal product of labor
equals total cost of production divided by the level of output
The average total cost of production
the maximum output that can be produced from each possible quantity of inputs
The production function shows
$220
Vipsana's Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. Calculated Vipsana's variable cost per day when she produces 50 gyros using two workers?
payment to hire a security worker to guard the gate to the factory around the clock
Which of the following is a fixed cost?
rent that could have been earned on a building owned and used by the firm
Which of the following is an implicit cost of production?
