Question 1

Table 13-1
Listed in the table are the long-run total costs for three different firms.
 
-Refer to Table 13-1.Firm A is experiencing economies of scale.

Accepted Answer

A) True 
 B)False

Question 2

Analyzing the behavior of the firm enhances our understanding of

Accepted Answer

A)   what decisions lie behind the market supply curve.
B)   how consumers allocate their income to purchase scarce resources.
C)   how financial institutions set interest rates.
D)   whether resources are allocated fairly.

Question 3

Table 13-3
 
-Refer to Table 13-3.What is total output when 1 worker is hired?

Accepted Answer

A)   30
B)   40
C)   120
D)   160

Question 4

Average total cost is equal to

Accepted Answer

A)   output/total cost.
B)   total cost - total quantity of output.
C)   average variable cost + total fixed cost.
D)   total cost/output.

Question 5

Charles's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes) .The firm's total cost is

Accepted Answer

A)   $100.
B)   $200.
C)   $300.
D)   $500.

Question 6

When a factory is operating in the short run,

Accepted Answer

A)   it cannot alter variable costs.
B)   total cost and variable cost are usually the same.
C)   average fixed cost rises as output increases.
D)   it cannot adjust the quantity of fixed inputs.

Question 7

Scenario 13-3
Tony is a wheat farmer,but he also spends part of his day teaching guitar lessons.Due to the popularity of his local country western band,Farmer Tony has more students requesting lessons than he has time for if he is to also maintain his farming business.Farmer Tony charges $25 an hour for his guitar lessons.One spring day,he spends 10 hours in his fields planting $130 worth of seeds on his farm.He expects that the seeds he planted will yield $300 worth of wheat.
-Refer to Scenario 13-3.Tony's accounting profit equals

Accepted Answer

A)   $-80.
B)   $130.
C)   $170.
D)   $260.

Question 8

Figure 13-5 
-Refer to Figure 13-5.Which of the following can be inferred from the figure above?

Accepted Answer

A)   (i) and (ii) only
B)   (ii) and (iii) only
C)   (i) and (iii) only
D)   (ii) only

Question 9

The most likely explanation for economies of scale is

Accepted Answer

A)   coordination problems.
B)   specialization of labor.
C)   increasing marginal cost.
D)   decreasing marginal cost.

Question 10

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. A B)  ATCB C)  ATCC D)  ATCD" class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 13-9.Which curve represents the long-run average total cost?

Accepted Answer

A)   ATCA
B)   ATCB
C)   ATCC
D)   ATCD

Question 11

One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in the short run,

Accepted Answer

A)   output is not variable.
B)   the number of workers used to produce the firm's product is fixed.
C)   the size of the factory is fixed.
D)   there are no fixed costs.

Question 12

Table 13-5
The Flying Elvis Copter Rides
 
-Refer to Table 13-5.What is the value of C?

Accepted Answer

A)   $25
B)   $50
C)   $100
D)   $200

Question 13

In the long run,a firm that produces and sells computers gets to choose

Accepted Answer

A)   how many workers to hire.
B)   the size of its factories.
C)   which short-run average-total-cost curve to use.
D)   All of the above are correct.

Question 14

There is general agreement among economists that the long-run time period exceeds one year.

Accepted Answer

A) True 
 B)False

Exam 13: The Costs of Production

Table 13-5 The Flying Elvis Copter Rides -Refer to Table 13-5.What is the value of C?

Correct Answer
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Correct Answer
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There is general agreement among economists that the long-run time period exceeds one year.

Correct Answer
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One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in the short run,

Correct Answer
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When a factory is operating in the short run,

Correct Answer
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In the long run,a firm that produces and sells computers gets to choose

Correct Answer
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Table 13-3 -Refer to Table 13-3.What is total output when 1 worker is hired?

Correct Answer
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Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9.Which curve represents the long-run average total cost?

Correct Answer
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Analyzing the behavior of the firm enhances our understanding of

Correct Answer
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Charles's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes) .The firm's total cost is

Correct Answer
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Figure 13-5 -Refer to Figure 13-5.Which of the following can be inferred from the figure above?

Correct Answer
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The most likely explanation for economies of scale is

Correct Answer
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Average total cost is equal to

Correct Answer
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Table 13-1 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-1.Firm A is experiencing economies of scale.

Correct Answer
verified

Exam 13: The Costs of Production

Table 13-5 The Flying Elvis Copter Rides -Refer to Table 13-5.What is the value of C?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

There is general agreement among economists that the long-run time period exceeds one year.

Correct AnswerverifiedShow Answer

One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in the short run,

Correct AnswerverifiedShow Answer

When a factory is operating in the short run,

Correct AnswerverifiedShow Answer

In the long run,a firm that produces and sells computers gets to choose

Correct AnswerverifiedShow Answer

Table 13-3 -Refer to Table 13-3.What is total output when 1 worker is hired?

Correct AnswerverifiedShow Answer

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9.Which curve represents the long-run average total cost?

Correct AnswerverifiedShow Answer

Analyzing the behavior of the firm enhances our understanding of

Correct AnswerverifiedShow Answer

Charles's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes) .The firm's total cost is

Correct AnswerverifiedShow Answer

Figure 13-5 -Refer to Figure 13-5.Which of the following can be inferred from the figure above?

Correct AnswerverifiedShow Answer

The most likely explanation for economies of scale is

Correct AnswerverifiedShow Answer

Average total cost is equal to

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Table 13-1 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-1.Firm A is experiencing economies of scale.

Correct AnswerverifiedShow Answer

Correct Answer
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