AP Econ Micro Studying shiz - Assignment Essays

question

8. At 100 units of a firm's output, average total cost is $10, average variable cost is $8, average fixed cost is $2, and marginal cost is $12 How will each of the following change as the firm's output further increases?

answer

B. Increase Increase Decrease

question

19. In microeconomics, the short run is defined as which of the following?

answer

D. A period during which some inputs in a firm's production process cannot be changed.

question

49. An increase in which of the following will cause a firm's marginal cost curve to shift upward?

answer

A. The price of a variable input

question

Short-run marginal costs eventually increase because of the effects of

answer

B. Diminishing marginal product

question

At 100 units of output, a firm's total cost is $10,000. If the firm's total fixed cost is $4,000, its average variable cost is equal to

answer

C. $60

question

An entrepreneur has earned enough total revenue to cover her accounting costs, but economic losses are being incurred. What must be true?

answer

B. Her accounting profits are less than her implicit costs.

question

When total physical product is at its maximum, marginal physical product must be

answer

C. equal to zero

question

As output of a firm increases, the difference between the firm's average total cost and its average variable cost gets smaller because the firm's

answer

C. average fixed cost is decreasing

question

Total revenue equals

answer

price X quantity

question

The Three Amigo's company produced and sold 500 dog beds. The average cost of production per dog bed was $50. Each dog bed sold for a price of $65. The Three Amigo's total costs are

answer

$25,000

question

Total revenue minus only implicit costs is called

answer

None of the above is correct.

question

Some costs do not vary with the quantity of output produced. Those costs are called

answer

Fixed Costs.

question

Average total cost is equal to

answer

total cost/output

question

The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average total costs equal

answer

$20

question

The Flying Elvis Copter Rides

answer

$50

question

Barney builds custom wooden birdhouses. He can make 150 birdhouses per month and sell them for $50 each, His average total cost is $30 per birdhouse.

Barney is considering hiring his best friend Fred to work for him. Fred can build 125 birdhouses per month. If Barney hired Fred, what will be the monthly marginal product?

answer

125 birdhouses

question

Diminishing marginal product suggests that the marginal

answer

product of an extra worker is less than the previous worker's marginal product.

question

Curve A represents which type of cost curve?

answer

average fixed cost

question

When marginal cost exceeds average total cost,

answer

average total cost must be rising

question

Some costs do not vary with the quantity of output produced. Those costs are called

answer

fixed costs

question

If a firm produces nothing, which of the following costs will be zero?

answer

Variable cost

question

Which of the following is the best example of a variable cost?

answer

monthly wage payments for hired labor

question

Cindy's car wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). The firm's total cost is

answer

$500

question

Average total cost tells us the

answer

Cost of a typical unit of output, if total cost is divided evenly over all the units produced

question

The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $5 for 10,000 widgets. At that level of output, the firm's average total costs equal

answer

$15

question

Flying Elvis Copter Rides C

answer

$100

question

Which of the following costs do not vary with the amount of output a firm produces?

answer

fixed costs

question

For a construction company that builds houses, which of the following costs would be a fixed cost?

answer

the $30,000 per year salary paid to the company's bookkeeper

question

Sonia opened a yoga studio where she teaches classes and sells yoga clothing. Fixed costs for Sonia's yoga studio include the cost of the

answer

(iii) and (iv) only

question

Total cost can be divided into two types of costs:

answer

fixed costs and variable costs

question

Average total cost is equal to

answer

total cost/output

question

A firm produces 300 units of output at a total cost of $1,000. If fixed costs are $100,

answer

average variable cost is $3

question

Flying Elvis Copter Rides O

answer

$360

question

The average total cost of producing 240 units is

answer

$0.44

question

Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

One month, Teacher's Helper produced 18 instructional Modules. WHat was the average fixed cost for that month?

answer

$60

question

Which of these assumptions is often realistic for a firm in the short run?

answer

The firm can vary in the number of workers it employs but not the size of its factory.

question

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 functions are (L=6, Q=147) and (L=7, Q=184). The marginal product of the seventh worker is

answer

37 units of output.

question

Which of the following statements regarding accounting profits, opportunity costs, and economic profits is true?

answer

If accounting profits are less than opportunity costs, there will be economic losses.

question

Which of the following is true for a firm that uses labor as a variable input and capital as a fixed input in the short run?

answer

If the average product of labor is falling, the marginal product of labor must be less than the average product of labor.

question

Which of the following must be true if at the tenth unit of output, marginal cost (MC) is $130 and average total cost (ATC) is $150?

answer

ATC of producing the ninth unit is higher than $150.

question

Bruce is a talented writer and graphic artist who enjoys both types of work equally. Instead of earning $45,000 as a writer, Bruce now earns $25,000 in accounting profits as a graphic artist using the same computer equipment he would have used as a writer. What is Bruce's economic profit from choosing to work as a graphic artist?

answer

-$20,000

question

The average fixed cost of producing four units of output is equal to

answer

$30

question

Given the information above, the average variable cost of 25 units of output is

answer

question

The table below shows a competitive firm's total variable cost (TVC) and total fixed cost (TFC) at various units of output.

When output is 3 units, which of the following is correct?

answer

AVC 5
MC 7

question

Economies of scale can be illustrated by

answer

a decreasing long-run average total cost curve as a firm produces more output

question

If a firm's production function exhibits diminishing marginal product of the variable input in the short run, which of the following about the firm's short-run marginal cost (MC) curve must be true?

answer

As output increases, the MC curve slopes upward.

question

Assume that a firm uses only one variable input. If a firm is experiencing diminishing returns, which of the following is true as more of the variable input is used?

answer

Marginal cost will increase.

question

Assume Nadia voluntarily leaves a job with a salary of $100 per day to open and run a restaurant instead. After deducting all explicit costs from the restaurant revenues, Nadia has a gain of $120. Assuming there are no additional implicit costs, which of the following statements is true?

answer

Nadia has an economic profit of $20.

question

Which of the following indicates the presence of economies of scale as the quantity of output increases

answer

Long-run average total cost decreases.

question

In the short run, assume diminishing marginal product of labor sets in with the hiring of the second worker. Which of the following will remain constant as a firm produces more output?

answer

Total fixed cost

question

The following question is based on the output and cost data in the table below.
If there is only one variable input, diminishing marginal returns first occur with the production of which unit of output?

answer

5th

question

Jamal quits a job that was paying him $30,000 per year and decides to start his own business. He runs his business out of his house in a room he had been renting to his colleague for $12,000 a year. Jamal withdraws the $20,000 in his savings account that had been earning him a 10 percent annual interest to purchase computers and related accessories and equipment for the business. During the first year of operation, Jamal's business incurred $30,000 in explicit costs and generated $60,000 in total sales. Jamal's economic profit is

answer

-$14,000

question

Which of the following provides an example of the law of diminishing returns?

answer

As more of a variable input—for example, labor is used with a fixed number of machines— output increases but at a diminishing rate.

question

Marginal cost is defined as the

answer

change in total cost resulting from producing an additional unit of output

question

Locotek produces toy trains and pays each worker $350 per week. Five workers can produce 40 trains per week and six workers can produce 45 trains per week. The marginal product per week of the sixth worker is

answer

5 trains

question

The long-run average cost curve will be sloping downward if a firm experiences

answer

economies of scale

question

When the marginal cost curve lies below the average total cost curve, it is true that as output increases

answer

average total cost is decreasing

question

In microeconomics, the short run is defined as which of the following?

answer

A period during which some inputs in a firm's production process cannot be changed

question

Based on the short-run production function graph above showing the relationship between the quantity of labor and total product, which of the following statements is true?

answer

Total product is maximized when marginal product is zero.

question

Given the production schedule above, what is the maximum number of workers the firm can hire before the effects of diminishing marginal returns set in?

answer

question

When marginal product exceeds average product, which of the following must be true?

answer

Average product is increasing.

question

Assume a firm doubles its usage of each input, resulting in a doubling of the firm's output. Which of the following describes this result?

answer

Constant returns to scale

1 of 62

question

answer

B. Increase Increase Decrease

question

19. In microeconomics, the short run is defined as which of the following?

answer

D. A period during which some inputs in a firm's production process cannot be changed.

question

49. An increase in which of the following will cause a firm's marginal cost curve to shift upward?

answer

A. The price of a variable input

question

Short-run marginal costs eventually increase because of the effects of

answer

B. Diminishing marginal product

question

At 100 units of output, a firm's total cost is $10,000. If the firm's total fixed cost is $4,000, its average variable cost is equal to

answer

C. $60

question

An entrepreneur has earned enough total revenue to cover her accounting costs, but economic losses are being incurred. What must be true?

answer

B. Her accounting profits are less than her implicit costs.

question

When total physical product is at its maximum, marginal physical product must be

answer

C. equal to zero

question

As output of a firm increases, the difference between the firm's average total cost and its average variable cost gets smaller because the firm's

answer

C. average fixed cost is decreasing

question

Total revenue equals

answer

price X quantity

question

The Three Amigo's company produced and sold 500 dog beds. The average cost of production per dog bed was $50. Each dog bed sold for a price of $65. The Three Amigo's total costs are

answer

$25,000

question

Total revenue minus only implicit costs is called

answer

None of the above is correct.

question

Some costs do not vary with the quantity of output produced. Those costs are called

answer

Fixed Costs.

question

Average total cost is equal to

answer

total cost/output

question

The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average total costs equal

answer

$20

question

The Flying Elvis Copter Rides

answer

$50

question

answer

125 birdhouses

question

Diminishing marginal product suggests that the marginal

answer

product of an extra worker is less than the previous worker's marginal product.

question

Curve A represents which type of cost curve?

answer

average fixed cost

question

When marginal cost exceeds average total cost,

answer

average total cost must be rising

question

Some costs do not vary with the quantity of output produced. Those costs are called

answer

fixed costs

question

If a firm produces nothing, which of the following costs will be zero?

answer

Variable cost

question

Which of the following is the best example of a variable cost?

answer

monthly wage payments for hired labor

question

Cindy's car wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). The firm's total cost is

answer

$500

question

Average total cost tells us the

answer

Cost of a typical unit of output, if total cost is divided evenly over all the units produced

question

The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $5 for 10,000 widgets. At that level of output, the firm's average total costs equal

answer

$15

question

Flying Elvis Copter Rides C

answer

$100

question

Which of the following costs do not vary with the amount of output a firm produces?

answer

fixed costs

question

For a construction company that builds houses, which of the following costs would be a fixed cost?

answer

the $30,000 per year salary paid to the company's bookkeeper

question

Sonia opened a yoga studio where she teaches classes and sells yoga clothing. Fixed costs for Sonia's yoga studio include the cost of the

answer

(iii) and (iv) only

question

Total cost can be divided into two types of costs:

answer

fixed costs and variable costs

question

Average total cost is equal to

answer

total cost/output

question

A firm produces 300 units of output at a total cost of $1,000. If fixed costs are $100,

answer

average variable cost is $3

question

Flying Elvis Copter Rides O

answer

$360

question

The average total cost of producing 240 units is

answer

$0.44

question

answer

$60

question

Which of these assumptions is often realistic for a firm in the short run?

answer

The firm can vary in the number of workers it employs but not the size of its factory.

question

answer

37 units of output.

question

Which of the following statements regarding accounting profits, opportunity costs, and economic profits is true?

answer

If accounting profits are less than opportunity costs, there will be economic losses.

question

Which of the following is true for a firm that uses labor as a variable input and capital as a fixed input in the short run?

answer

If the average product of labor is falling, the marginal product of labor must be less than the average product of labor.

question

Which of the following must be true if at the tenth unit of output, marginal cost (MC) is $130 and average total cost (ATC) is $150?

answer

ATC of producing the ninth unit is higher than $150.

question

answer

-$20,000

question

The average fixed cost of producing four units of output is equal to

answer

$30

question

Given the information above, the average variable cost of 25 units of output is

answer

question

The table below shows a competitive firm's total variable cost (TVC) and total fixed cost (TFC) at various units of output.

When output is 3 units, which of the following is correct?

answer

AVC 5
MC 7

question

Economies of scale can be illustrated by

answer

a decreasing long-run average total cost curve as a firm produces more output

question

If a firm's production function exhibits diminishing marginal product of the variable input in the short run, which of the following about the firm's short-run marginal cost (MC) curve must be true?

answer

As output increases, the MC curve slopes upward.

question

Assume that a firm uses only one variable input. If a firm is experiencing diminishing returns, which of the following is true as more of the variable input is used?

answer

Marginal cost will increase.

question

answer

Nadia has an economic profit of $20.

question

Which of the following indicates the presence of economies of scale as the quantity of output increases

answer

Long-run average total cost decreases.

question

In the short run, assume diminishing marginal product of labor sets in with the hiring of the second worker. Which of the following will remain constant as a firm produces more output?

answer

Total fixed cost

question

answer

5th

question

answer

-$14,000

question

Which of the following provides an example of the law of diminishing returns?

answer

As more of a variable input—for example, labor is used with a fixed number of machines— output increases but at a diminishing rate.

question

Marginal cost is defined as the

answer

change in total cost resulting from producing an additional unit of output

question

answer

5 trains

question

The long-run average cost curve will be sloping downward if a firm experiences

answer

economies of scale

question

When the marginal cost curve lies below the average total cost curve, it is true that as output increases

answer

average total cost is decreasing

question

In microeconomics, the short run is defined as which of the following?

answer

A period during which some inputs in a firm's production process cannot be changed

question

Based on the short-run production function graph above showing the relationship between the quantity of labor and total product, which of the following statements is true?

answer

Total product is maximized when marginal product is zero.

question

Given the production schedule above, what is the maximum number of workers the firm can hire before the effects of diminishing marginal returns set in?

answer

question

When marginal product exceeds average product, which of the following must be true?

answer

Average product is increasing.

question

Assume a firm doubles its usage of each input, resulting in a doubling of the firm's output. Which of the following describes this result?

answer

Constant returns to scale

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order