ECO 12 - Assignment Essays

question

When people refer to the bottom line, they are referring to the company's _______ which is shown on the bottom line in a company's income statement.

answer

profit

question

The amount that a firm receives from the sale of goods and services is its total ______

answer

revenue

question

Costs that don't change as output increases or decreases are called

answer

fixed costs.

question

Suppose Drink Well produces flavored water in a rented space using their private well, purchased bottles, and hired hourly labor. They buy advertising services from a marketing company for a fee based on sales. Their fixed costs include

answer

rent.

question

______ costs depend on the quantity of output produced.

answer

Variable

question

In business, people frequently say, "It's all about the bottom line." What they mean by this is

answer

that making a profit is the central goal of a business.

question

Suppose Event Photo Services takes photographs at private events. They process the photos in a permanently rented space and hire hourly labor to arrange shoots and produce the finished photo packages. They buy advertising services from a marketing company for a fee based on sales. Their variable costs include

answer

labor and advertising.

question

The quantity sold multiplied by the price paid per unit is

answer

total revenue

question

Fixed costs are those that

answer

don't depend on the quantity of output produced.

question

When economists think about a firm's costs, they are thinking about ___________

answer

opportunity costs.

question

Suppose Event Photo Services takes photographs at private events with cameras they purchased. They process the photos in a rented space and hire hourly labor to arrange shoots and produce the finished photo packages. They buy advertising services from a marketing company for a flat annual fee. Their fixed costs include

answer

advertising, rent, and cameras.

question

Variable costs

answer

depend on the quantity of output produced.

question

Suppose Drink Well produces flavored water in a permanently rented space using their private well, purchased bottles, and hired hourly labor. They buy advertising services from a marketing company for a flat annual fee. Their variable costs include

answer

labor, water, and bottles.

question

Total revenue is the quantity

answer

sold multiplied by the price paid per unit.

question

When economists think about a firm's costs, they are thinking about everything the firm

answer

gives up in order to produce output.

question

Implicit costs are

answer

costs that represent forgone opportunities

question

_________ costs are what you give up in order to get something.

answer

Implicit

question

Explicit costs include

answer

fixed and variable costs.

question

Total revenue minus explicit costs is

answer

accounting profit.

question

______ costs are costs that require a firm to spend money _______costs do not require a firm to spend money or take on obligations.
Listen to the complete question

answer

Explicit
Implicit

question

The production function shows the relationship between the quantity of _______ and the quantity of outputs.

answer

inputs

question

The marginal product of any input into the production process is the increase in ________ that is generated by an additional unit of the input.

answer

output

question

Suppose you are able to produce 50 basketballs. Hiring another employee enables you to produce 65 basketballs. The marginal product of the added worker is _____ basketballs.

answer

question

Explicit costs are

answer

costs that require a firm to spend money.
costs that include just about everything we typically think of as a cost.

question

The relationship between the quantity of inputs and the quantity of outputs is the __________ function

answer

production

question

The increase in the number of units of a product that can be produced by hiring an additional employee is called the______ product of that employee.

answer

marginal

question

The principle of diminishing marginal product states that the marginal product of an input

answer

decreases as the quantity of the input increases.

question

Marginal product is represented by the ______ of the total production curve.

answer

slope

question

Suppose with 5 workers you can produce 100 picture frames. With 6 workers you can produce 125 picture frames. The marginal product of the added worker is _______ picture frames

answer

question

From looking at a graph of the production function, you can see that the marginal product initially ________ when the first few workers are added; but then it begins to __________

answer

increases
decrease

question

The production function shows the relationship between the

answer

quantity of inputs and the quantity of outputs.

question

Total costs =

answer

fixed costs + variable costs

question

The principle of diminishing ______product states that the marginal product of an input decreases as the quantity of the input increases.
Listen to the complete question

answer

marginal

question

Average fixed cost = ______ cost/quantity of output.

answer

fixed

question

Average variable cost equals

answer

variable cost divided by quantity of output.

question

When output is very low, each additional worker has a _______ marginal product than the last one; but when more workers are added the marginal product starts to ___________

answer

higher
decrease

question

Average fixed cost equals

answer

fixed cost divided by quantity of output.

question

Average variable cost = Total ____ variablecost/quantity of output.

answer

variable

question

Gut Bombs sandwich shop pays $5,000 a month in rent space and equipment. It pays each of it 10 workers $2,500 a month and spends $5,000 on food. There are no other production costs. Usually the shop sells 3,500 sandwiches per month for $10 each.Their average variable cost per month per sandwich, rounded to the nearest penny, is

answer

$8.57

question

Average total cost equals

answer

total cost divided by quantity.

question

Gut Bombs sandwich shop pays $5,000 a month in rent space and equipment. It pays each of it 10 workers $2,500 a month and spends $5000 on food. There are no other production costs. Usually the shop sells 3,500 sandwiches per month for $10 each.Their total cost is

answer

$35,000.

question

The average fixed cost curve trends downward because the

answer

fixed costs remain the same as production increases.

question

A firm's first few employees tend to have increasing marginal product. At some point, the principle of diminishing marginal product kicks in. As a result,

answer

the average total cost curve is U-shaped.

question

The average variable cost curve has its shape because, initially, the first few employees demonstrate _____ marginal product causing the average variable cost curve to slope ________) but when the principle of diminishing marginal product kicks in, the curve slopes

answer

increasing
downward
upward

question

The slope of the total cost curve decreases because of the principle of diminishing marginal product.

answer

False

question

The average ______ cost curve trends downward because as production increases, the cost per unit of production decreases.

answer

fixed

question

The minimum of the average total cost curve occurs at a higher output level than the minimum of the average variable costs curve because the average _____ cost is lower than the average ______ cost and this pulls the average total cost down.

answer

fixed
variable

question

Because initially the first few employees have an increasing marginal product but eventually the principle of diminishing marginal product kicks in, the average variable cost curve

answer

is U-shaped.

question

The marginal cost is the ________ cost that will be incurred by producing one additional unit of

answer

additional
output

question

The increasing slope of the total cost curve reflects the principle of diminishing ___________product.

answer

marginal

question

The marginal cost is the

answer

change in total cost ÷ the change in the quantity of output.

question

If the marginal cost of increasing production by one unit is more than your current average total cost, then average total cost of producing that extra unit __________

answer

increases

question

The long run is any period over one year.

answer

False

question

The change in total cost divided by the change in the quantity of output is called

answer

marginal cost.

question

Economies of scale, diseconomies of scale, and constant returns to scale describe the relationship between the

answer

quantity of output and average total cost.

question

The change in total cost divided by the change in the quantity of output is the

answer

arginal cost.

question

If the marginal cost of increasing production by one unit is ________ than your current average total cost, then producing that extra unit will decrease your average total cost.
Listen to the complete question

answer

less

question

The cost of a lease (or any input) is fixed in the ______ run, but not fixed in the __ run

answer

short
long

question

The relationship between the quantity of output and average total cost is described by

answer

economies of scale, diseconomies of scale, and constant returns to scale.

question

Marginal cost is the

answer

change in total cost ÷ the change in the quantity of output.

question

Average total cost is rising when

answer

MC > ATC.

question

Economists think of the long run as being the period of time

answer

during which a firm can vary all of its inputs and their costs.

question

When a firm realizes economies of scale, it can

answer

lower its average cost by producing more output.

question

The relationship between the quantity of output and average total cost is described by which of the following?

answer

Economies of scale
Constant returns to scale
Diseconomies of scale

question

If a small firm finds that operating on a larger scale enables it to lower its average cost, then the firm is facing

answer

economies of scale.

question

Diseconomies of scale are returns that occur when an increase in the quantity of output

answer

increases average total cost.

question

When a firm faces constant returns to scale,

answer

an increase in the quantity of output does not change the average total cost.

question

When a firm could achieve economies of scale by expanding,

answer

the ATC curve decreases as output increases.

question

If a small firm finds that operating on a larger scale causes its average cost to increase, the firm is facing

answer

diseconomies of scale.

question

If a small firm finds that operating on a larger scale causes its average cost to stay the same, the firm is facing

answer

constant returns to scale.

question

When a firm realizes diseconomies of scale by expanding

answer

the ATC curve increases as output increases.

question

If a small firm finds that operating on a larger scale causes its average cost to increase, the firm is facing

answer

...

1 of 72

question

When people refer to the bottom line, they are referring to the company's _______ which is shown on the bottom line in a company's income statement.

answer

profit

question

The amount that a firm receives from the sale of goods and services is its total ______

answer

revenue

question

Costs that don't change as output increases or decreases are called

answer

fixed costs.

question

answer

rent.

question

______ costs depend on the quantity of output produced.

answer

Variable

question

In business, people frequently say, "It's all about the bottom line." What they mean by this is

answer

that making a profit is the central goal of a business.

question

answer

labor and advertising.

question

The quantity sold multiplied by the price paid per unit is

answer

total revenue

question

Fixed costs are those that

answer

don't depend on the quantity of output produced.

question

When economists think about a firm's costs, they are thinking about ___________

answer

opportunity costs.

question

answer

advertising, rent, and cameras.

question

Variable costs

answer

depend on the quantity of output produced.

question

answer

labor, water, and bottles.

question

Total revenue is the quantity

answer

sold multiplied by the price paid per unit.

question

When economists think about a firm's costs, they are thinking about everything the firm

answer

gives up in order to produce output.

question

Implicit costs are

answer

costs that represent forgone opportunities

question

_________ costs are what you give up in order to get something.

answer

Implicit

question

Explicit costs include

answer

fixed and variable costs.

question

Total revenue minus explicit costs is

answer

accounting profit.

question

______ costs are costs that require a firm to spend money _______costs do not require a firm to spend money or take on obligations.
Listen to the complete question

answer

Explicit
Implicit

question

The production function shows the relationship between the quantity of _______ and the quantity of outputs.

answer

inputs

question

The marginal product of any input into the production process is the increase in ________ that is generated by an additional unit of the input.

answer

output

question

Suppose you are able to produce 50 basketballs. Hiring another employee enables you to produce 65 basketballs. The marginal product of the added worker is _____ basketballs.

answer

question

Explicit costs are

answer

costs that require a firm to spend money.
costs that include just about everything we typically think of as a cost.

question

The relationship between the quantity of inputs and the quantity of outputs is the __________ function

answer

production

question

The increase in the number of units of a product that can be produced by hiring an additional employee is called the______ product of that employee.

answer

marginal

question

The principle of diminishing marginal product states that the marginal product of an input

answer

decreases as the quantity of the input increases.

question

Marginal product is represented by the ______ of the total production curve.

answer

slope

question

Suppose with 5 workers you can produce 100 picture frames. With 6 workers you can produce 125 picture frames. The marginal product of the added worker is _______ picture frames

answer

question

From looking at a graph of the production function, you can see that the marginal product initially ________ when the first few workers are added; but then it begins to __________

answer

increases
decrease

question

The production function shows the relationship between the

answer

quantity of inputs and the quantity of outputs.

question

Total costs =

answer

fixed costs + variable costs

question

The principle of diminishing ______product states that the marginal product of an input decreases as the quantity of the input increases.
Listen to the complete question

answer

marginal

question

Average fixed cost = ______ cost/quantity of output.

answer

fixed

question

Average variable cost equals

answer

variable cost divided by quantity of output.

question

When output is very low, each additional worker has a _______ marginal product than the last one; but when more workers are added the marginal product starts to ___________

answer

higher
decrease

question

Average fixed cost equals

answer

fixed cost divided by quantity of output.

question

Average variable cost = Total ____ variablecost/quantity of output.

answer

variable

question

answer

$8.57

question

Average total cost equals

answer

total cost divided by quantity.

question

answer

$35,000.

question

The average fixed cost curve trends downward because the

answer

fixed costs remain the same as production increases.

question

A firm's first few employees tend to have increasing marginal product. At some point, the principle of diminishing marginal product kicks in. As a result,

answer

the average total cost curve is U-shaped.

question

answer

increasing
downward
upward

question

The slope of the total cost curve decreases because of the principle of diminishing marginal product.

answer

False

question

The average ______ cost curve trends downward because as production increases, the cost per unit of production decreases.

answer

fixed

question

answer

fixed
variable

question

Because initially the first few employees have an increasing marginal product but eventually the principle of diminishing marginal product kicks in, the average variable cost curve

answer

is U-shaped.

question

The marginal cost is the ________ cost that will be incurred by producing one additional unit of

answer

additional
output

question

The increasing slope of the total cost curve reflects the principle of diminishing ___________product.

answer

marginal

question

The marginal cost is the

answer

change in total cost ÷ the change in the quantity of output.

question

If the marginal cost of increasing production by one unit is more than your current average total cost, then average total cost of producing that extra unit __________

answer

increases

question

The long run is any period over one year.

answer

False

question

The change in total cost divided by the change in the quantity of output is called

answer

marginal cost.

question

Economies of scale, diseconomies of scale, and constant returns to scale describe the relationship between the

answer

quantity of output and average total cost.

question

The change in total cost divided by the change in the quantity of output is the

answer

arginal cost.

question

answer

less

question

The cost of a lease (or any input) is fixed in the ______ run, but not fixed in the __ run

answer

short
long

question

The relationship between the quantity of output and average total cost is described by

answer

economies of scale, diseconomies of scale, and constant returns to scale.

question

Marginal cost is the

answer

change in total cost ÷ the change in the quantity of output.

question

Average total cost is rising when

answer

MC > ATC.

question

Economists think of the long run as being the period of time

answer

during which a firm can vary all of its inputs and their costs.

question

When a firm realizes economies of scale, it can

answer

lower its average cost by producing more output.

question

The relationship between the quantity of output and average total cost is described by which of the following?

answer

Economies of scale
Constant returns to scale
Diseconomies of scale

question

If a small firm finds that operating on a larger scale enables it to lower its average cost, then the firm is facing

answer

economies of scale.

question

Diseconomies of scale are returns that occur when an increase in the quantity of output

answer

increases average total cost.

question

When a firm faces constant returns to scale,

answer

an increase in the quantity of output does not change the average total cost.

question

When a firm could achieve economies of scale by expanding,

answer

the ATC curve decreases as output increases.

question

If a small firm finds that operating on a larger scale causes its average cost to increase, the firm is facing

answer

diseconomies of scale.

question

If a small firm finds that operating on a larger scale causes its average cost to stay the same, the firm is facing

answer

constant returns to scale.

question

When a firm realizes diseconomies of scale by expanding

answer

the ATC curve increases as output increases.

question

If a small firm finds that operating on a larger scale causes its average cost to increase, the firm is facing

answer

...

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