Chapter 4.3 - Assignment Essays

question

If you draw a long run ATC curve:

answer

The long-run average total cost curve will show the minimum ATC for each level of production

question

One difference between a partnership and a sole proprietorship is:

answer

A partnership can be owned by more than one person

question

Which of the following is not an explicit cost for the owner of a clothing retail store?

answer

Time the owner spends working

question

If a firm earns zero economic profit, it earns:

answer

A normal profit

question

Marginal cost is equal to average variable cost when:

answer

Average variable cost is at its minimum

question

When marginal costs decrease:

answer

The firm experiences increasing returns to scale

question

Which of the following industries is likely to have great economies of scale?

answer

Aerospace industry, builders of airplanes

question

In general, a firm will experience increasing marginal returns:

answer

On low levels of output

question

When a manager determines how much of a factor of production a firm should use, she should look at the:

answer

Marginal product of the factor and its price

question

In an industry with few economies of scale, there will be:

answer

Many very small firms

question

In the long run:

answer

The level of every input a firm uses can be adjusted

question

Which of the following is the correct relationship between fixed, variable, and total costs?

answer

FC + VC = TC

question

Which of the following is an impossible combination?

answer

Negative accounting profit and positive economic profit

question

Marginal cost is equal to average total cost when:

answer

average total cost is at its minimum

question

One difference between a partnership and a corporation is:

answer

The owner of a partnership can be held liable for the firm's debts, but the owners of a corporation cannot

question

The average product is:

answer

The average output created by each unit of input

question

Marginal product is:

answer

The additional output created using one more unit of input

question

Decreasing marginal returns means:

answer

As more production occurs, the cost of producing more increases

question

When marginal product equals to zero:

answer

Total product is at its maximum

question

The short run means:

answer

The period during which the use of some inputs into production can be altered

question

As a firm gets larger, economies of scale come from all the following except:

answer

Bureaucracy increasing within by the firm

question

Which factor of production is almost never included in a firm's fixed costs?

answer

Labor

question

Increasing marginal returns means that:

answer

Increases in inputs cause ever greater increases in output

question

Opportunity costs are included in (pick the best answer):

answer

Both implicit and explicit costs

question

In the short run, as production increases:

answer

Fixed costs remain constant, but average fixed costs decrease

question

Economic profit is:

answer

Total revenue minus explicit and implicit costs

question

Which of the following is the most accurate statement about a firm?

answer

A firm buys factors of production in the factor market and coordinates their use to produce goods and services for the product market

question

If a business earns a normal profit, that means:

answer

Economic profit is zero

question

Which of the following is a cause of diseconomies of scale?

answer

Worker's feelings of alienation, or separation, from the company

question

The U.S government owns the U.S Postal Service. The Postal Service is:

answer

A government organization

1 of 30

question

If you draw a long run ATC curve:

answer

The long-run average total cost curve will show the minimum ATC for each level of production

question

One difference between a partnership and a sole proprietorship is:

answer

A partnership can be owned by more than one person

question

Which of the following is not an explicit cost for the owner of a clothing retail store?

answer

Time the owner spends working

question

If a firm earns zero economic profit, it earns:

answer

A normal profit

question

Marginal cost is equal to average variable cost when:

answer

Average variable cost is at its minimum

question

When marginal costs decrease:

answer

The firm experiences increasing returns to scale

question

Which of the following industries is likely to have great economies of scale?

answer

Aerospace industry, builders of airplanes

question

In general, a firm will experience increasing marginal returns:

answer

On low levels of output

question

When a manager determines how much of a factor of production a firm should use, she should look at the:

answer

Marginal product of the factor and its price

question

In an industry with few economies of scale, there will be:

answer

Many very small firms

question

In the long run:

answer

The level of every input a firm uses can be adjusted

question

Which of the following is the correct relationship between fixed, variable, and total costs?

answer

FC + VC = TC

question

Which of the following is an impossible combination?

answer

Negative accounting profit and positive economic profit

question

Marginal cost is equal to average total cost when:

answer

average total cost is at its minimum

question

One difference between a partnership and a corporation is:

answer

The owner of a partnership can be held liable for the firm's debts, but the owners of a corporation cannot

question

The average product is:

answer

The average output created by each unit of input

question

Marginal product is:

answer

The additional output created using one more unit of input

question

Decreasing marginal returns means:

answer

As more production occurs, the cost of producing more increases

question

When marginal product equals to zero:

answer

Total product is at its maximum

question

The short run means:

answer

The period during which the use of some inputs into production can be altered

question

As a firm gets larger, economies of scale come from all the following except:

answer

Bureaucracy increasing within by the firm

question

Which factor of production is almost never included in a firm's fixed costs?

answer

Labor

question

Increasing marginal returns means that:

answer

Increases in inputs cause ever greater increases in output

question

Opportunity costs are included in (pick the best answer):

answer

Both implicit and explicit costs

question

In the short run, as production increases:

answer

Fixed costs remain constant, but average fixed costs decrease

question

Economic profit is:

answer

Total revenue minus explicit and implicit costs

question

Which of the following is the most accurate statement about a firm?

answer

A firm buys factors of production in the factor market and coordinates their use to produce goods and services for the product market

question

If a business earns a normal profit, that means:

answer

Economic profit is zero

question

Which of the following is a cause of diseconomies of scale?

answer

Worker's feelings of alienation, or separation, from the company

question

The U.S government owns the U.S Postal Service. The Postal Service is:

answer

A government organization

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