Microeconomics Chapter 11 Extra Credit

The relationship between the inputs used by the firm and the maximum output it can produce is known as the:

production function

diminishing returns

the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

When graphing a conventional short-run production function, we place __________ on the horizontal axis and __________ on the vertical axis.

variable , fixed

If the number of people in a publishing company does not go up or down with the quantity of books it publishes, then how should we categorize the salaries and benefits paid to these employees?

As a part of fixed cost

Which of the following are sometimes called accounting costs?

Explicit

In the short-run, the cost that is independent of the amount of output produced is called __________.

Fixed cost

What is the name for the additional output that a firm produces as a result of hiring one more worker?

Marginal product of labor

Which of the following is known as the highest-valued alternative that must be given up in order to engage in an activity?

Opportunity cost

the following is known as the highest-valued alternative that must be given up in order to engage in an activity?

Opportunity cost

Which of these costs are affected by the level of output produced?

Variable costs

Minimum efficient scale is the level of output at which

all economies of scale have been exhausted

The short run is a period of time where __________ while the long run is a period of time where __________.

at least one input is fixed, all inputs are variable

The downward sloping part of the long run average total cost curve is where the firm is achieving:

economies of scale

When the marginal product of labor is greater than the average product of labor, then the average product of labor must be:

increasing