Question 1

In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are

Accepted Answer

A)  constant economies of scale.
B)  constant returns to scale.
C)  diseconomies of scale.
D)  economies of scale.
E)  constant diseconomies of scale.F) C) and D)
G) B) and E)

Question 2

The long run is a time period that is

Accepted Answer

A)  five years or longer.
B)  long enough to change the amount of labor employed.
C)  long enough to change the size of the firm's plant and all other inputs.
D)  long enough to change the amount of labor employed but not to change the size of the plant.
E)  None of the above answers describes the long run.F) A) and B)
G) All of the above

Question 3

Which of the following is an implicit cost?
I∙wages paid to workers
Ii∙the normal profit
Iii∙the electric bill

Accepted Answer

A)  i only
B)  ii only
C)  i and ii
D)  ii and iii
E)  Neither i, ii, nor iiiF) B) and D)
G) B) and E)

Question 4

The figure above shows some of a firm's cost curves.
-Curve A is the firm's

Accepted Answer

A)  marginal cost curve.
B)  total cost curve.
C)  average total cost curve.
D)  total variable cost curve.
E)  total fixed cost curve.F) D) and E)
G) A) and D)

Question 5

The short run is a time period during which

Accepted Answer

A)  some of the firm's resources are fixed.
B)  all of the firm's resources are fixed.
C)  all of the firm's resources are variable.
D)  the fixed cost equals zero.
E)  the firm cannot increase its output.F) A) and C)
G) D) and E)

Question 6

Which of the following is correct?

Accepted Answer

A)  The short run for a firm can be longer than the long run for the same firm.
B)  The short run is the same for all firms.
C)  The long run is the time frame in which the quantities of all resources can be varied.
D)  The long run is the time frame in which all resources are fixed.
E)  The long run does not exist for some firms.F) A) and D)
G) B) and C)

Exam 14: Production and Cost

Which of the following is an implicit cost? I∙wages paid to workers Ii∙the normal profit Iii∙the electric bill

Correct Answer
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The long run is a time period that is

Correct Answer
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The figure above shows some of a firm's cost curves. -Curve A is the firm's

Correct Answer
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In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are

Correct Answer
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Which of the following is correct?

Correct Answer
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The short run is a time period during which

Correct Answer
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Exam 14: Production and Cost

Which of the following is an implicit cost? I∙wages paid to workers Ii∙the normal profit Iii∙the electric bill

Correct AnswerverifiedShow Answer

The long run is a time period that is

Correct AnswerverifiedShow Answer

The figure above shows some of a firm's cost curves. -Curve A is the firm's

Correct AnswerverifiedShow Answer

In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

The short run is a time period during which

Correct AnswerverifiedShow Answer

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