Question 1

​​​Table 13-7 
-Refer to Table 13-7. What is total output when 5 workers are hired?​

Accepted Answer

A)  ​30
B)  ​160
C)  ​190
D)  ​215E) A) and B)
F) A) and C)

Question 2

The shape of the total-cost curve is unrelated to the shape of the production function.

Accepted Answer

A) True 
 B)False

Question 3

Figure 13-5 
-Refer to Figure 13-5. Curve D is increasing because

Accepted Answer

A)  of diminishing marginal product.
B)  of increasing marginal product.
C)  marginal product first increases, then decreases.
D)  marginal product first decreases, then increases.E) B) and C)
F) All of the above

Question 4

If the production function exhibits diminishing marginal product, the total cost function gets steeper as the quantity of output increases.
​

Accepted Answer

A) True 
 B)False

Question 5

Accounting profit is greater than or equal to economic profit.

Accepted Answer

A) True 
 B)False

Question 6

If a firm produces nothing, which of the following costs will be zero?

Accepted Answer

A)  total cost
B)  fixed cost
C)  opportunity cost
D)  variable costE) All of the above
F) B) and D)

Question 7

Table 13-15 
-Refer to Table 13-15. What is the total fixed cost for this firm?

Accepted Answer

A)  $20
B)  $30
C)  $40
D)  $50E) A) and B)
F) B) and D)

Question 8

If a firm produces nothing, it still incurs its fixed costs.

Accepted Answer

A) True 
 B)False

Question 9

Table 13-3 
-Refer to Table 13-3. At which number of workers does diminishing marginal product begin?

Accepted Answer

A)  1
B)  2
C)  3
D)  4E) B) and D)
F) All of the above

Question 10

If Franco's Pizza Parlor knows that the marginal cost of the 500th pizza is $3.50 and that the average total cost of making 499 pizzas is $3.30, then

Accepted Answer

A)  average total costs are rising at Q = 500.
B)  average total costs are falling at Q = 500.
C)  total costs are falling at Q = 500.
D)  average variable costs must be falling.E) A) and B)
F) A) and C)

Question 11

Table 13-14 
-Refer to Table 13-14. What is the average variable cost of producing 6 units of output?

Accepted Answer

A)  $1.67
B)  $18
C)  $19.67
D)  $21.33E) A) and B)
F) B) and C)

Question 12

Which of the following costs of publishing a book is a fixed cost?

Accepted Answer

A)  author royalties of 5% per book
B)  the costs of paper and binding
C)  shipping and postage expenses
D)  composition, typesetting, and jacket design for the bookE) A) and C)
F) None of the above

Question 13

At Bert's Bootery, the total cost of producing twenty pairs of boots is $400. The marginal cost of producing the twenty-first pair of boots is $83. We can conclude that the

Accepted Answer

A)  average variable cost of 21 pairs of boots is $23.
B)  average total cost of 21 pairs of boots is $23.
C)  average total cost of 21 pairs of boots is $15.09.
D)  marginal cost of the 20th pair of boots is $20.E) B) and C)
F) All of the above

Question 14

Table 13-19 
-Refer to Table 13-19. What is the total output of five workers?

Accepted Answer

Total output of four workers =...

Question 15

When a firm experiences diseconomies of scale,

Accepted Answer

A)  short-run average total cost is minimized.
B)  long-run average total cost is minimized.
C)  long-run average total cost increases as output increases.
D)  long-run average total cost decreases as output increases.E) A) and D)
F) A) and B)

Question 16

If the average total cost curve is falling, what is necessarily true of the marginal cost curve? If the average total cost curve is rising, what is necessarily true of the marginal cost curve?

Accepted Answer

When average total cost curve ...

Question 17

Which of the following costs do not vary with the amount of output a firm produces?

Accepted Answer

A)  average fixed costs
B)  fixed costs and average fixed costs
C)  marginal costs and average fixed costs
D)  fixed costsE) B) and D)
F) None of the above

Question 18

Consider a small family wheat farm. List some examples of implicit costs of farming.

Accepted Answer

the lost earnings of any famil...

Question 19

The cost of producing an additional unit of a good is not the same as the average cost of the good.

Accepted Answer

A) True 
 B)False

Question 20

Consider a small family wheat farm. List some examples of explicit costs of farming.

Accepted Answer

seeds, fertilizer, pesticide, ...

Exam 13: The Costs of Production

Table 13-19 -Refer to Table 13-19. What is the total output of five workers?

Correct AnswerverifiedTotal output of four workers =...View AnswerShow Answer

Table 13-3 -Refer to Table 13-3. At which number of workers does diminishing marginal product begin?

Correct AnswerverifiedShow Answer

Accounting profit is greater than or equal to economic profit.

Correct AnswerverifiedShow Answer

If a firm produces nothing, it still incurs its fixed costs.

Correct AnswerverifiedShow Answer

The shape of the total-cost curve is unrelated to the shape of the production function.

Correct AnswerverifiedShow Answer

If the average total cost curve is falling, what is necessarily true of the marginal cost curve? If the average total cost curve is rising, what is necessarily true of the marginal cost curve?

Correct AnswerverifiedWhen average total cost curve ...View AnswerShow Answer

​​​Table 13-7 -Refer to Table 13-7. What is total output when 5 workers are hired?​

Correct AnswerverifiedShow Answer

Consider a small family wheat farm. List some examples of implicit costs of farming.

Correct Answerverifiedthe lost earnings of any famil...View AnswerShow Answer

Table 13-14 -Refer to Table 13-14. What is the average variable cost of producing 6 units of output?

Correct AnswerverifiedShow Answer

At Bert's Bootery, the total cost of producing twenty pairs of boots is $400. The marginal cost of producing the twenty-first pair of boots is $83. We can conclude that the

Correct AnswerverifiedShow Answer

If the production function exhibits diminishing marginal product, the total cost function gets steeper as the quantity of output increases. ​

Correct AnswerverifiedShow Answer

Table 13-15 -Refer to Table 13-15. What is the total fixed cost for this firm?

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Figure 13-5 -Refer to Figure 13-5. Curve D is increasing because

Correct AnswerverifiedShow Answer

Which of the following costs of publishing a book is a fixed cost?

Correct AnswerverifiedShow Answer

The cost of producing an additional unit of a good is not the same as the average cost of the good.

Correct AnswerverifiedShow Answer

If Franco's Pizza Parlor knows that the marginal cost of the 500th pizza is $3.50 and that the average total cost of making 499 pizzas is $3.30, then

Correct AnswerverifiedShow Answer

When a firm experiences diseconomies of scale,

Correct AnswerverifiedShow Answer

Consider a small family wheat farm. List some examples of explicit costs of farming.

Correct Answerverifiedseeds, fertilizer, pesticide, ...View AnswerShow Answer

Which of the following costs do not vary with the amount of output a firm produces?

Correct AnswerverifiedShow Answer

If a firm produces nothing, which of the following costs will be zero?

Correct AnswerverifiedShow Answer

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Total output of four workers =...
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When average total cost curve ...
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Table 13-7 -Refer to Table 13-7. What is total output when 5 workers are hired?

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the lost earnings of any famil...
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If the production function exhibits diminishing marginal product, the total cost function gets steeper as the quantity of output increases.

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If Franco's Pizza Parlor knows that the marginal cost of the 500^th pizza is $3.50 and that the average total cost of making 499 pizzas is $3.30, then

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seeds, fertilizer, pesticide, ...
View Answer

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