Costs and Correct Answer

Topics: Costs, Variable cost, Marginal cost Pages: 6 (931 words) Published: June 20, 2013
uestion 7

1 out of 1 points
Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed.Refer to the above data. Diminishing marginal returns become evident with the addition of the:Answer Selected Answer: third worker.

Correct Answer: third worker.

Question 8

1 out of 1 points
Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed.Refer to the above data. The marginal product of the sixth worker is:Answer Selected Answer: 15 units of output.

Correct Answer: 15 units of output.

Question 9

1 out of 1 points
In the above diagram curves 1, 2, and 3 represent the:Answer Selected Answer: marginal, average, and total product curves respectively. Correct Answer: marginal, average, and total product curves respectively.

Question 10

1 out of 1 points
Refer to the above diagram. At output level Q total variable cost is:Answer Selected Answer: 0BEQ.
Correct Answer: 0BEQ.

Question 11

1 out of 1 points
Answer the question on the basis of the following cost data:Refer to the above data. The total variable cost of producing 5 units is:Answer Selected Answer: $37.
Correct Answer: $37.

Question 12

1 out of 1 points
Answer the question on the basis of the following cost data:Refer to the above data. The average total cost of producing 3 units of output is:Answer Selected Answer: $16.
Correct Answer: $16.

Question 13

1 out of 1 points
Answer the question on the basis of the following cost data:Refer to the above data. The marginal cost of producing the sixth unit of output is:Answer Selected Answer: $8.
Correct Answer: $8.

Question 14

1 out of 1 points
In the above figure, curves 1, 2, 3, and 4 represent the:
Answer
Selected Answer: MC, ATC, AVC, and AFC curves respectively. Correct Answer: MC, ATC, AVC, and AFC curves respectively.

Question 15

1 out of 1 points
In the long run:Answer
Selected Answer: all costs are variable costs.
Correct Answer: all costs are variable costs.

Question 16

1 out of 1 points
In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies?Answer Selected Answer: oligopoly
Correct Answer: oligopoly

Question 17

0 out of 1 points
Which of the following industries most closely approximates pure competition?Answer Selected Answer: clothing
Correct Answer: agriculture

Question 18

1 out of 1 points
A purely competitive seller is:Answer
Selected Answer: a “price taker.”
Correct Answer: a “price taker.”

Question 19

1 out of 1 points
The MR = MC rule applies:Answer
Selected Answer: to firms in all types of industries.
Correct Answer: to firms in all types of industries.

Question 20

1 out of 1 points
Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation:Answer Selected Answer: is realizing an economic profit of $40.

Correct Answer: is realizing an economic profit of $40.

Question 21

1 out of 1 points
Answer the question on the basis of the following data confronting a firm:Refer to the above data. This firm is selling its output in a(n):Answer Selected Answer: purely competitive market.

Correct Answer: purely competitive market.

Question 22

1 out of 1 points
Answer the question on the basis of the following data confronting a firm:Refer to the above data. If the firm’s minimum average variable cost is $10, the firm’s profit-maximizing level of output would be:Answer...
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