Eco 6418 - Assignment Essays

question

Sources of economies scale include all except the following:

answer

all of the above are sources of scale economies

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The smallest output at which long run average cost is minimized is

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The point at which minimum efficient scale is reached

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Scope economies are said to rely on which of the following strategies?

answer

Diversifying into related products

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A production function is a table, a graph, or an equation showing the

answer

maximum output that can be achieved from specified levels of inputs.

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Costs increase as a firm shortens the development horizon because

answer

A. more tasks must be undertaken concurrently; this lessens the amount of learning that can be incorporated

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The long run is a time period during which

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all inputs are variable.

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A production function is a table, a graph, or an equation showing the

answer

maximum output that can be achieved from specified levels of inputs.

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The average product of labor is defined as the

answer

output divided by the labor input usage

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The marginal product of labor is defined by the

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change in output divided by the change in labor input usage.

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The marginal product of labor can be illustrated geometrically as the

answer

slope of the total product curve with respect to labor.

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Average variable cost is equal to the

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total variable cost divided by the level of output.

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Whenever average variable cost is declining with increases in output,

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marginal cost at first decreases and then increases with output

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Whenever marginal product is declining with increasing use of an input,

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total product is increasing at a decreasing rate as input use increases

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When average product is at a maximum, marginal product is

answer

equal to average product.

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Whenever average product is declining with increases in input usage,

answer

marginal product is less than average product

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Diminishing marginal returns

answer

are consistent with increasing returns to scale

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Break-even analysis usually assumes

answer

average variable costs are constant.

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The opportunity cost of a firm's inputs

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is the value of the inputs in their most highly valued alternative use.

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If average variable cost is increasing with increases in output, total fixed cost will

answer

remain unchanged with increases in output.

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The addition to total cost resulting from the addition of the last unit of output is known as

answer

marginal cost.

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Short-run marginal cost eventually increases with increasing output because

answer

eventually marginal returns will diminish.

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When average variable cost is at its minimum,

answer

marginal cost is less than average total cost.

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The long-run average cost curve slopes upward if there are

answer

diseconomies of scale

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Doctor Brown just graduated from medical school and will open her own family practice. With respect to her business, student loan repayments she makes for her tuition represent

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sunk cost

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When setting rates that natural monopolists can charge, regulatory commissions attempt to establish a maximum price

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where price equals average variable cost plus a fair return on invested capital of monopolist.

question

Which of the following is true about an unregulated monopolist?

answer

It will never allow its price to be in the inelastic portion of the industry demand curve.

question

Many sellers of a differentiated product are associated with which market structure?

answer

Monopolistic Competition

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A market where there are only a few sellers is known as

answer

oligopolistic.

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In the model of monopoly, firms produce a

answer

differentiated product with considerable control over price.

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A decreasing-cost industry is one in which

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input prices fall or technology improves as firms enter the industry.

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Oligopoly is a market structure that necessarily has

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a small number of firms but more than one.

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Oligopoly is the only market structure in which one finds

answer

firm interdependence.

1 of 32

question

Sources of economies scale include all except the following:

answer

all of the above are sources of scale economies

question

The smallest output at which long run average cost is minimized is

answer

The point at which minimum efficient scale is reached

question

Scope economies are said to rely on which of the following strategies?

answer

Diversifying into related products

question

A production function is a table, a graph, or an equation showing the

answer

maximum output that can be achieved from specified levels of inputs.

question

Costs increase as a firm shortens the development horizon because

answer

A. more tasks must be undertaken concurrently; this lessens the amount of learning that can be incorporated

question

The long run is a time period during which

answer

all inputs are variable.

question

A production function is a table, a graph, or an equation showing the

answer

maximum output that can be achieved from specified levels of inputs.

question

The average product of labor is defined as the

answer

output divided by the labor input usage

question

The marginal product of labor is defined by the

answer

change in output divided by the change in labor input usage.

question

The marginal product of labor can be illustrated geometrically as the

answer

slope of the total product curve with respect to labor.

question

Average variable cost is equal to the

answer

total variable cost divided by the level of output.

question

Whenever average variable cost is declining with increases in output,

answer

marginal cost at first decreases and then increases with output

question

Whenever marginal product is declining with increasing use of an input,

answer

total product is increasing at a decreasing rate as input use increases

question

When average product is at a maximum, marginal product is

answer

equal to average product.

question

Whenever average product is declining with increases in input usage,

answer

marginal product is less than average product

question

Diminishing marginal returns

answer

are consistent with increasing returns to scale

question

Break-even analysis usually assumes

answer

average variable costs are constant.

question

The opportunity cost of a firm's inputs

answer

is the value of the inputs in their most highly valued alternative use.

question

If average variable cost is increasing with increases in output, total fixed cost will

answer

remain unchanged with increases in output.

question

The addition to total cost resulting from the addition of the last unit of output is known as

answer

marginal cost.

question

Short-run marginal cost eventually increases with increasing output because

answer

eventually marginal returns will diminish.

question

When average variable cost is at its minimum,

answer

marginal cost is less than average total cost.

question

The long-run average cost curve slopes upward if there are

answer

diseconomies of scale

question

Doctor Brown just graduated from medical school and will open her own family practice. With respect to her business, student loan repayments she makes for her tuition represent

answer

sunk cost

question

When setting rates that natural monopolists can charge, regulatory commissions attempt to establish a maximum price

answer

where price equals average variable cost plus a fair return on invested capital of monopolist.

question

Which of the following is true about an unregulated monopolist?

answer

It will never allow its price to be in the inelastic portion of the industry demand curve.

question

Many sellers of a differentiated product are associated with which market structure?

answer

Monopolistic Competition

question

A market where there are only a few sellers is known as

answer

oligopolistic.

question

In the model of monopoly, firms produce a

answer

differentiated product with considerable control over price.

question

A decreasing-cost industry is one in which

answer

input prices fall or technology improves as firms enter the industry.

question

Oligopoly is a market structure that necessarily has

answer

a small number of firms but more than one.

question

Oligopoly is the only market structure in which one finds

answer

firm interdependence.

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