logo image

Economics of Production and Output Essay

The main difference between the short run and the long run is that: A) firms earn zero profits in the long run. B) the long run always refers to a time period of one year or longer. C) in the short run, one or more inputs is fixed. D) in the long run, only one variable can be fixed. 2. At the level of output where marginal cost equals average variable cost: A) average total cost is decreasing. B) average variable cost is decreasing. C) marginal cost equals average total cost. D) marginal cost is decreasing. Use the following to answer question 3: 3.

Refer to the above table. The total cost of five units of output will be: 4. If average variable cost is $74 and total fixed cost is $100 at 5 units of output, then average total cost at this output level is: A) $91. B) $94. C) $97. D) $100. 5. If marginal cost exceeds average variable cost, then: A) average variable cost must be increasing. B) average total cost must be increasing. C) average fixed costs must be increasing. D) marginal cost must be decreasing. 6. At an output level of 50 units per day a

Need essay sample on "Economics of Production and Output"? We will write a custom essay sample specifically for you for only $ 13.90/page

firm has average total costs of $60 and Economics of Production and Output

By civilization A) $925. B) $1,250. C) $1,750. D) $3,000. 7. If long-run average total cost decreases as output increases, this is due to: A) declining average fixed costs. C) economies of scale. B) the law of diminishing returns. D) externalities. 8. At an output of 20,000 units per year, a firm’s variable costs are $80,000 and its average fixed costs are $3. The total costs per year for the firm are: A) $80,000. B) $100,000. C) $140,000. D) $240,000. Use the following to answer questions 9-10: Assume that the only variable resource used to produce output is labor. 9. Refer to the above table.

Diminishing marginal returns set in with the addition of the: A) first unit of labor. C) third unit of labor. B) second unit of labor. D) fourth unit of labor. 10. Refer to the above table. The marginal product of the fourth unit of labor is: A) 4 units of output. C) 8 units of output. B) 6 units of output. D) 30 units of output. 1 1 . Which is not a fixed cost? A) monthly rent of $1,000 contractually specified in a one-year lease B) an insurance premium of $50 per year, paid last month C) an attorney’s retainer of $50,000 per year D) a worker’s wage of $15 per hour 12. Refer to the above table.

The total variable cost of producing 35 units of output is: A) $90. B) $120. C) $160. D) $210. 13. Refer to the above table. If output is zero, total cost is: A) $90. B) $50. C) $40. D) $0. 14. The following table shows the relationship between output and costs for two firms in 15. As output increases, average fixed costs: A) increase. C) remain constant. B) decrease. D) first increase and then decrease. 16. America Aniline’s cost of delivering Internet access to each additional user has fallen over time because: A) of constant returns to scale. C) of economies of scale. B) of minimum efficient scale. D) it is a natural monopoly.

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy