econ

If Jerry produces four units, his average fixed cost is $1.50 and his average variable cost is $4.50. Jerry's total cost to produce four units is:

$24

short run

a time period in which the quantity of at least one input is fixed.

True or False: Large initial setup costs are a cause of increasing returns to scale. This is _____. Please choose the correct answer from the following choices, and then select the submit answer button.

true

If four workers at Taco Bell can make 200 tacos in an hour and five workers can make 240 tacos in an hour, then the marginal product of the fifth worker is:

40 tacos

If long-run average total cost is constant when output is increasing, then the cost curves exhibit:

constant returns to scale

The average fixed cost curve is flat with a zero slope. This is _____.

false

True or False: Although there are no obstacles to prevent entry into a perfectly competitive industry, there are usually substantial costs of closing down and leaving the market. This is _____.

false

True or False: Price is higher than marginal cost when a competitive industry is in a long-run equilibrium. This is _____.

false

The firm incurs losses if total:

if total cost is more than total revenue

If marginal cost is greater than average total cost then average total cost is:

increasing in that range

The curve showing the relationship between the price of a good and the total output of the industry as a whole is known as the:

industry supply curve

cause of economies of scale

large scale operations that result in increased specialization

A perfectly competitive firm will produce at the point where:

marginal revenue=marginal cost

A firm's total revenue is equal to:

price times quantity

A good that is always regarded as the same even if it comes from different producers is:

standardized

marginal cost

the change in total cost divided by the change in output

Marginal revenue is:

the change in total revenue divided by the change in output.

The short-run industry supply curve is the sum of the individual marginal cost curves, assuming that:

the number of producers is fixed

production function

the relationship between the quantity of inputs a firm uses and the quantity of output it produces

marginal product

the slope of the total product curve

True or False: A commodity is a standardized product. This is _____.

true

True or False: The wheat growing industry is a perfectly competitive industry because it produces a standardized product and each farmer has a very small market share. This is _____.

true

When a firm is experiencing decreasing returns to scale, the long-run average total cost curve is: Please choose the correct answer from the following choices, and then select the submit answer button.

upward sloping

Average variable cost is:

variable cost divided by output.

If five workers at Taco Bell can make 240 tacos in an hour and the marginal product of the sixth worker is 30, the total product of six workers is _____ tacos.

270