Micro Assignment 5 - Assignment Essays

question

A production function describes

answer

how a firm turns inputs into output

question

Average total cost is very high when a small amount of output is produced because

answer

average fixed cost is high

question

Refer to the above diagram. At output level Q average fixed cost:

answer

is measured by both QF and ED

question

A local playground equipment company plans to operate out of its current factory, which is estimated to last 30 years. All cost decisions it makes during the 30-year period

answer

are short-run decisions

question

Refer to the above diagram. The vertical distance between ATC and AVC reflects:

answer

the average fixed cost at each level of output

question

If a variable input is added to some fixed input, beyond some point the resulting extra output will decline. This statement describes

answer

the law of diminishing product of labor

question

In the above diagram curves 1, 2, and 3 represent: (look at phone picture)

answer

total fixed cost, total variable cost, and total cost respectively

question

If a firm decides to produce no output in the short run, its costs will be

answer

its fixed costs

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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

Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were

answer

$200,000 and its economic profits were zero

question

Which of the following curves is not U-shaped?

answer

AFC

question

Refer to the below diagram. At output level Q total fixed cost is:

answer

BCDE

question

The above diagram shows the short-run average total cost curves for five different plant sizes of a firm. The shape of each individual curve reflects

answer

increasing marginal product, followed by diminishing marginal product

question

Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting

answer

profits were zero and its economic losses were $500,000

question

Fixed cost is

answer

any cost which does not change when the firm changes its output

question

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. What is the total cost of producing 101 units?

answer

$4,800

question

Refer to the below data. The marginal product of the sixth worker is:

answer

15 units of output

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Refer to the below diagram. At output level Q total variable cost is:

answer

OBEQ

question

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $3,500. When it produces 101 units of output, its total costs are $3,750. What is the marginal cost of producing the 101st unit of output?

answer

$250

question

Refer to Table 13-7. What is total output when 1 worker is hired?

answer

question

Refer to the below data. The total variable cost of producing 5 units is:

answer

$37

question

As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters

answer

diminishing marginal product

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Definition of Economic profit

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Economic profit = accounting profit - implicit costs

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Accounting profits are typically

answer

greater than economic profits because the former do not take implicit costs into account

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The basic characteristic of the short run is that

answer

the firm does not have sufficient time to change the size of its plant

question

As the firm in the above diagram expands from plant size #1 to plant size #3, it experiences

answer

economies of scale

question

If average total cost is declining, then

answer

marginal cost must be less than average total cost

question

Refer to the below data. Diminishing marginal product of labor become evident with the addition of the:

answer

third worker

question

Refer to the above diagram. At output level Q

answer

marginal product is falling

question

Refer to the below data. The average fixed cost of producing 3 units of output is:

answer

question

Refer to the above diagram. At output level Q total cost is

answer

0BEQ plus BCDE

question

Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic

answer

in the short run but not in the long run

question

In the above figure, curves 1, 2, 3, and 4 represent the:

answer

MC, ATC, AVC, and AFC curves respectively

question

Refer to the below data. The marginal cost of producing the sixth unit of output is:

answer

question

Refer to the below data. The marginal product of the fourth worker:

answer

is 5

question

Relationship between MP and MC

answer

When MP is rising MC is falling, and when MP is falling MC is rising

question

To economists, the main difference between the short run and the long run is that

answer

in the long run all resources are variable, while in the short run at least one resource is fixed

question

Refer to the below data. When two workers are employed:

answer

total product is 18

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Refer to the below data. The profit-maximizing output for this firm:

answer

cannot be determined from the information given

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Refer to the below data. The average total cost of producing 3 units of output is

answer

$16

1 of 40

question

A production function describes

answer

how a firm turns inputs into output

question

Average total cost is very high when a small amount of output is produced because

answer

average fixed cost is high

question

Refer to the above diagram. At output level Q average fixed cost:

answer

is measured by both QF and ED

question

A local playground equipment company plans to operate out of its current factory, which is estimated to last 30 years. All cost decisions it makes during the 30-year period

answer

are short-run decisions

question

Refer to the above diagram. The vertical distance between ATC and AVC reflects:

answer

the average fixed cost at each level of output

question

If a variable input is added to some fixed input, beyond some point the resulting extra output will decline. This statement describes

answer

the law of diminishing product of labor

question

In the above diagram curves 1, 2, and 3 represent: (look at phone picture)

answer

total fixed cost, total variable cost, and total cost respectively

question

If a firm decides to produce no output in the short run, its costs will be

answer

its fixed costs

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

answer

$200,000 and its economic profits were zero

question

Which of the following curves is not U-shaped?

answer

AFC

question

Refer to the below diagram. At output level Q total fixed cost is:

answer

BCDE

question

The above diagram shows the short-run average total cost curves for five different plant sizes of a firm. The shape of each individual curve reflects

answer

increasing marginal product, followed by diminishing marginal product

question

Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting

answer

profits were zero and its economic losses were $500,000

question

Fixed cost is

answer

any cost which does not change when the firm changes its output

question

answer

$4,800

question

Refer to the below data. The marginal product of the sixth worker is:

answer

15 units of output

question

Refer to the below diagram. At output level Q total variable cost is:

answer

OBEQ

question

answer

$250

question

Refer to Table 13-7. What is total output when 1 worker is hired?

answer

question

Refer to the below data. The total variable cost of producing 5 units is:

answer

$37

question

answer

diminishing marginal product

question

Definition of Economic profit

answer

Economic profit = accounting profit - implicit costs

question

Accounting profits are typically

answer

greater than economic profits because the former do not take implicit costs into account

question

The basic characteristic of the short run is that

answer

the firm does not have sufficient time to change the size of its plant

question

As the firm in the above diagram expands from plant size #1 to plant size #3, it experiences

answer

economies of scale

question

If average total cost is declining, then

answer

marginal cost must be less than average total cost

question

Refer to the below data. Diminishing marginal product of labor become evident with the addition of the:

answer

third worker

question

Refer to the above diagram. At output level Q

answer

marginal product is falling

question

Refer to the below data. The average fixed cost of producing 3 units of output is:

answer

question

Refer to the above diagram. At output level Q total cost is

answer

0BEQ plus BCDE

question

Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic

answer

in the short run but not in the long run

question

In the above figure, curves 1, 2, 3, and 4 represent the:

answer

MC, ATC, AVC, and AFC curves respectively

question

Refer to the below data. The marginal cost of producing the sixth unit of output is:

answer

question

Refer to the below data. The marginal product of the fourth worker:

answer

is 5

question

Relationship between MP and MC

answer

When MP is rising MC is falling, and when MP is falling MC is rising

question

To economists, the main difference between the short run and the long run is that

answer

in the long run all resources are variable, while in the short run at least one resource is fixed

question

Refer to the below data. When two workers are employed:

answer

total product is 18

question

Refer to the below data. The profit-maximizing output for this firm:

answer

cannot be determined from the information given

question

Refer to the below data. The average total cost of producing 3 units of output is

answer

$16

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