1. Which of the following is true before a firm has reached the point of diminishing  ...
1. Which of the following is true before a firm has reached the point of diminishing returns?
a) marginal product is negative
b) marginal product is rising, but still positive
c) average product is declining
d) average product may be rising or declining
e) both a) and c) are correct
2. Whenever the slope of the total product curve is increasing at an increasing rate, the marginal product curve is _____.
a) positive and rising
b) positive and falling
c) negative and falling
d) negative and rising
3. Suppose a firm is currently producing 20 units of output (Q). If the average fixed cost incurred at that level of output is $2.50, then what must be this firm’s total fixed cost?
a) $0; the firm is not incurring a fixed cost
b) between $0 and $30
c) between $30 and $60
d) between $60 and $90
e) greater than $90
4. Which of the following statements is true?
a) Technological efficiency implies economic efficiency.
b) Economic efficiency implies technological efficiency.
c) Technological efficiency and economic efficiency are the same thing.
d) Economic efficiency is an ideal and can never be practically achieved in a production process.
5. Whenever a firm increases both its labor and capital by 2 percent, and as a result, output increases by more than 2 percent, then the production process is exhibiting
a) increasing returns to scale.
b) constant returns to scale.
c) decreasing returns to scale.
d) economies of scale.
e) both a) and d) are correct
Homework Answers
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1. Which of the following is true before a firm has reached the point of diminishing  ...
erences Mailings Review View Help Tell me what you want to do 1. Which of the...
erences Mailings Review View Help Tell me what you want to do 1. Which of the following is true before a firm has reached the point of diminishing returns? a) marginal product is negative b) marginal product is rising, but still positive c) average product is declining d) average product may be rising or declining e) both a) and c) are correct 2. Whenever the slope of the total product curve is increasing at an increasing rate, the marginal product...
22. Which of the following is true for a firm that enjoys economies of scale? a. Marginal cost is increasing as output i...
22. Which of the following is true for a firm that enjoys economies of scale? a. Marginal cost is increasing as output increases. b. Average total cost is falling as output increases. c. Marginal cost is constant as output increases. d. Marginal revenue is falling as output increases. 23. The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use. Refer...
D 22. Which of the following is true for a firm that enjoys economies of scale?...
D 22. Which of the following is true for a firm that enjoys economies of scale? Marginal cost is increasing as output increases. Average total cost is falling as output increases. Marginal cost is constant as output increases. Marginal revenue is falling as output increases.
These two question please Question 8 (1 point) When do constant returns to scale occur? when...
These two question please
Question 8 (1 point) When do constant returns to scale occur? when long-run total costs are constant as output increases when long-run average total costs are constant as output increases when the firm's long-run average-cost curve is falling as output increases when the firm's long-run average-cost curve is rising as output increases Figure 13-4 The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for...
Question Completion Status: QUESTION 31 An efficient scale of the firm is the quantity of output...
Question Completion Status: QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product • maximizes profit minimizes average total cost • minimizes average variable cost QUESTION 32 If marginal cost is rising - average variable cost must be falling average fixed cost must be rising marginal product must be falling • marginal product must be rising QUESTION 33 Diminishing marginal product suggests that additional units of output beccome less costly as more output...
The law of diminishing returns means that Multiple Choice O total product will eventually increase at...
The law of diminishing returns means that Multiple Choice O total product will eventually increase at a decreasing rate as more inputs are employed. O the marginal product will increase at an increasing rate. O average total costs are rising and then falling as output is increased. O average fixed cost will fall as production increases.
Suppose a perfectly competitive firm faces this situation: P= $15, output = 700, MC = $14,...
Suppose a perfectly competitive firm faces this situation: P= $15, output = 700, MC = $14, AVC = $10, and ATC = $14. Which statement is correct? O O O O The firm is productively but not allocatively efficient. The firm is allocatively efficient but not productively efficient. The firm is both productively and allocatively efficient. The firm is neither allocatively efficient nor productively efficient. Suppose that the twenty-third worker generates a marginal product equal to eight boxes of output...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of a. diseconomies of scale. b. diminishing marginal revenues. c. rising fixed costs. d. increasing marginal productivity of variable inputs. e. diminishing marginal returns. . If the long-run average cost of production falls as the firm increases its level of output, then the firm exhibits a. constant returns to scale. b. constant marginal costs. c. economies of scale. d. diseconomies of scale. e. diminishing...
a) Increasing returns to scale (also known as economies of scale) occurs when average cost is ...
a) Increasing returns to scale (also known as economies of scale) occurs when average cost is [CHOOSE] ["minimized", "steady", "rising", "maximized", "falling"] . b) Decreasing returns to scale (diseconomies of scale) occurs when average cost is [CHOOSE] ["maximized", "minimized", "falling", "steady", "rising"] . c) When marginal...
20. Refer to Table 13-3. Gallo's cork factory experiences diminishing marginal product of labor with the additio...
20. Refer to Table 13-3. Gallo's cork factory experiences diminishing marginal product of labor with the addition of which worker? a. The third worker. b. The fourth worker. c. The fifth worker. d. The sixth worker. Average total cost equals a. 21. change in total costs divided by quantity produced. b. change in total costs divided by change in quantity produced. (fixed costs+ variable costs) divided by quantity produced. c. d. (fixed costs + variable costs) divided by change in...
erences Mailings Review View Help Tell me what you want to do 1. Which of the following is true before a firm has reached the point of diminishing returns? a) marginal product is negative b) marginal product is rising, but still positive c) average product is declining d) average product may be rising or declining e) both a) and c) are correct 2. Whenever the slope of the total product curve is increasing at an increasing rate, the marginal product...
D 22. Which of the following is true for a firm that enjoys economies of scale? Marginal cost is increasing as output increases. Average total cost is falling as output increases. Marginal cost is constant as output increases. Marginal revenue is falling as output increases.
These two question please
Question 8 (1 point) When do constant returns to scale occur? when long-run total costs are constant as output increases when long-run average total costs are constant as output increases when the firm's long-run average-cost curve is falling as output increases when the firm's long-run average-cost curve is rising as output increases Figure 13-4 The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for...
Question Completion Status: QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product • maximizes profit minimizes average total cost • minimizes average variable cost QUESTION 32 If marginal cost is rising - average variable cost must be falling average fixed cost must be rising marginal product must be falling • marginal product must be rising QUESTION 33 Diminishing marginal product suggests that additional units of output beccome less costly as more output...
The law of diminishing returns means that Multiple Choice O total product will eventually increase at a decreasing rate as more inputs are employed. O the marginal product will increase at an increasing rate. O average total costs are rising and then falling as output is increased. O average fixed cost will fall as production increases.
Suppose a perfectly competitive firm faces this situation: P= $15, output = 700, MC = $14, AVC = $10, and ATC = $14. Which statement is correct? O O O O The firm is productively but not allocatively efficient. The firm is allocatively efficient but not productively efficient. The firm is both productively and allocatively efficient. The firm is neither allocatively efficient nor productively efficient. Suppose that the twenty-third worker generates a marginal product equal to eight boxes of output...
20. Refer to Table 13-3. Gallo's cork factory experiences diminishing marginal product of labor with the addition of which worker? a. The third worker. b. The fourth worker. c. The fifth worker. d. The sixth worker. Average total cost equals a. 21. change in total costs divided by quantity produced. b. change in total costs divided by change in quantity produced. (fixed costs+ variable costs) divided by quantity produced. c. d. (fixed costs + variable costs) divided by change in...
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