ECO chp 13 - Assignment Essays

question

wages and salaries paid to workers are an example of implicit costs of production

answer

false

question

total revenue equals the quantity of output the firm produces times the price at which it sells its output

answer

true

question

If total revenue is €100, explicit costs are €50, and implicit costs are €30, then accounting profit equals €50.

answer

true

question

If there are implicit costs of production, accounting profits will exceed economic profits.

answer

true

question

when a production function gets flatter, the marginal product is increasing

answer

false

question

if a firm continues to employ more workers within the same size factory, it will eventually experience diminishing marginal product

answer

true

question

if the production for a firm exhibits diminishing marginal product, the corresponding total cost curve for the firm will become flatter as the quantity of output expands

answer

false

question

Fixed costs plus variable costs equal total costs.

answer

true

question

average total costs are total costs divided by marginal costs

answer

false

question

when marginal costs are below average total costs, average total costs must be falling

answer

true

question

If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will be u-shaped

answer

true

question

the average total cost curve crosses the marginal cost curve at the minimum of the marginal cost curve

answer

false

question

the average total cost curve in the long run is flatter than the average total cost curve in the short run

answer

true

question

the efficient scale for a firm is the quantity of output that minimizes marginal cost

answer

false

question

in the long run, as a firm expands its production facilities, it generally first experiences diseconomies of scale, then constant returns to scale, and finally economies of scale

answer

false

question

accounting profit is equal to total revenue minus

answer

explicit costs

question

economic profit is equal to total revenue minus

answer

implicit costs

question

Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for €100 each. It costs Nicole €20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested €100,000 in her factory and equipment: €50,000 from her savings and €50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 per cent, too.) Nicole can work at a competing pottery factory for €40,000 per year. The accounting profit at Nicole's pottery factory is

answer

€75,000.

question

Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for €100 each. It costs Nicole €20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested €100,000 in her factory and equipment: €50,000 from her savings and €50,000 borrowed at 10 percent (assume that she could have loaned her money out at 10 percent, too). Nicole can work at a competing pottery factory for €40,000 per year. The economic profit at Nicole's pottery factory is

answer

€30,000.

question

if there are implicit costs of production

answer

accounting profit will exceed economic profit

question

If a production function exhibits diminishing marginal product, its slope

answer

becomes flatter as the quantity of the input increases

question

if a production exhibits diminishing marginal product, the slope of the corresponding total-cost curve

answer

becomes steeper as the quantity of output increases

question

when marginal costs are below average total costs,

answer

average total costs are falling

question

if marginal costs equal average total costs

answer

average total costs are minimized

question

If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will

answer

be u-shaped

question

In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience

answer

economies of scale

question

the efficient scale of production is the quantity of output that minimizes

answer

average total cost

question

which of the following statements is true

answer

all costs are variable in the long run

1 of 28

question

wages and salaries paid to workers are an example of implicit costs of production

answer

false

question

total revenue equals the quantity of output the firm produces times the price at which it sells its output

answer

true

question

If total revenue is €100, explicit costs are €50, and implicit costs are €30, then accounting profit equals €50.

answer

true

question

If there are implicit costs of production, accounting profits will exceed economic profits.

answer

true

question

when a production function gets flatter, the marginal product is increasing

answer

false

question

if a firm continues to employ more workers within the same size factory, it will eventually experience diminishing marginal product

answer

true

question

if the production for a firm exhibits diminishing marginal product, the corresponding total cost curve for the firm will become flatter as the quantity of output expands

answer

false

question

Fixed costs plus variable costs equal total costs.

answer

true

question

average total costs are total costs divided by marginal costs

answer

false

question

when marginal costs are below average total costs, average total costs must be falling

answer

true

question

If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will be u-shaped

answer

true

question

the average total cost curve crosses the marginal cost curve at the minimum of the marginal cost curve

answer

false

question

the average total cost curve in the long run is flatter than the average total cost curve in the short run

answer

true

question

the efficient scale for a firm is the quantity of output that minimizes marginal cost

answer

false

question

in the long run, as a firm expands its production facilities, it generally first experiences diseconomies of scale, then constant returns to scale, and finally economies of scale

answer

false

question

accounting profit is equal to total revenue minus

answer

explicit costs

question

economic profit is equal to total revenue minus

answer

implicit costs

question

answer

€75,000.

question

Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for €100 each. It costs Nicole €20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested €100,000 in her factory and equipment: €50,000 from her savings and €50,000 borrowed at 10 percent (assume that she could have loaned her money out at 10 percent, too). Nicole can work at a competing pottery factory for €40,000 per year. The economic profit at Nicole's pottery factory is

answer

€30,000.

question

if there are implicit costs of production

answer

accounting profit will exceed economic profit

question

If a production function exhibits diminishing marginal product, its slope

answer

becomes flatter as the quantity of the input increases

question

if a production exhibits diminishing marginal product, the slope of the corresponding total-cost curve

answer

becomes steeper as the quantity of output increases

question

when marginal costs are below average total costs,

answer

average total costs are falling

question

if marginal costs equal average total costs

answer

average total costs are minimized

question

If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will

answer

be u-shaped

question

In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience

answer

economies of scale

question

the efficient scale of production is the quantity of output that minimizes

answer

average total cost

question

which of the following statements is true

answer

all costs are variable in the long run

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