Diminishing returns occur because
a. Of lower opportunity costs of the factors of production.
b. Of the use of inferior factors of production.
c. Of inefficiency in the production process.
d. A firm increases the amount of a variable input without changing a fixed input.
Economies of scale are reductions in average
a. Fixed cost resulting from improved technology and production efficiency.
b. Total cost that result from using operations of larger size.
c. Fixed cost that result from reducing the firm's scale of operations.
d. Total cost that result from declining average fixed costs.
The productivity of workers will increase in response to
a. An increase in the amount of physical capital per worker.
b. Lower wages.
c. An increase in diminishing returns.
d. Higher resource costs.
The most desirable rate of output for a firm is the output that
a. Maximizes total revenue.
b. Maximizes total profit.
c. Minimizes total costs.
d. Minimizes marginal costs.
The period in which there are no fixed costs is the
a. Long run.
b. Implicit run.
c. Production run.
d. Short run.
The period in which at least one input is fixed in quantity is the
a. Long run.
b. Investment decision.
c. Short run.
d. Production run.
Which of the following is most likely a fixed cost?
a. The material used to make jackets.
b. The labor on an automotive assembly line.
c. The rent for a factory.
d. The electricity used to run packaging equipment.
The marginal physical product of the third unit of labor in Figure 21.1 is
a. 12.0 units per day.
b. 40.0 units per day.
c. 13.3 units per day.
d. 4.0 units per day.
Refer to Table 21.5: Table 21.5
The total cost of 3 units of output in Table 21.5 is
a. $23.
b. $15.
c. $30.
d. $38.
What is the marginal cost of the 120th unit of output in Figure 21.2?
a. $200.00.
b. $208.00.
c. $1.20.
d. $288.00.
Intel's chief executive says the company might expand the technology it is using in its planned $2.5 billion chip-manufacturing factory in China if the U.S. government allows it, underscoring the technology giant's ambitions in the world's fourth-biggest economy. The Intel executive is making a
a. Long-run decision, and therefore an investment decision.
b. Short-run decision, and therefore a decision about how much to produce.
c. Decision that would definitely increase costs.
d. Decision that would cause ATC to increase.
In the short run, which of the following is most likely a variable cost?
a. Contractual lease payments.
b. Labor and raw materials costs.
c. Property taxes.
d. Interest payments on borrowed funds.
In the short run, when a firm produces zero output, total cost equals
a. Zero.
b. Variable costs.
c. Marginal costs.
d. Fixed costs.
Greater labor productivity means
a. Higher labor cost per unit of output.
b. Lower output per labor-hour.
c. Lower output per worker.
d. Higher output per worker.
The marginal physical product is the
a. Change in total output associated with one additional unit of input.
b. Additional cost of an additional unit of output.
c. Number of units of output obtained from all units of input employed.
d. Change in total input required to produce one additional unit of output.
The marginal physical product of labor in Figure 21.1 is negative for the
a. Sixth worker.
b. Third worker.
c. Fifth worker.
d. Fourth worker.
Refer to Table 21.5
The average variable cost of the second unit of output in Table 21.5 is
a. $15
b. $6
c. $8
d. $4
What is the average fixed cost when output is 120 units in Figure 21.2?
a. $96
b. $0.67
c. $80
d. $208
What is the average fixed cost when output is 100 units in Figure 21.2?
a. $200
b. $67
c. $208.00.
d. $96.00.
Ceteris paribus, the law of diminishing returns states that beyond some point, the
a. Returns on stocks and bonds diminish with higher security prices.
b. Marginal physical product of a factor of production diminishes as more of it is employed with a given quantity of other inputs.
c. Addition to total utility diminishes as more units of a good are consumed.
d. Output of any good increases as more of a variable input is used.
Which of the following is a factor of production for the Little Biscuit Bread Company?
a. Flour.
b. Productivity.
c. Money.
d. Bread.
Intel's chief executive says the company might expand the technology it is using in its planned $2.5 billion chip-manufacturing factory in China if the U.S. government allows it, underscoring the technology giant's ambitions in the world's fourth-biggest economy. The Intel executive is making a
a. Short-run decision, and therefore a decision about how much to produce.
b. Long-run decision, and therefore an investment decision.
c. Decision that would definitely increase costs.
d. Decision that would cause ATC to increase.
In Figure 21.1, diminishing marginal returns first occur with the
a. third worker
b. fifth worker
c. fourth worker
d. second worker
Marginal cost
a. Falls when there are diminishing returns.
b. Is the change in total cost associated with a one-unit increase in production.
c. Is the change in the total cost when hiring one more factor of production.
d. Is the change in total output from hiring one more factor of production.
Table 21.5
Total fixed costs in table 21.5 are equal to...
a. $30
b. $0 because the problem involves the long run
c. $15
d. $60
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
