Output and Costs

The short run is a period of time in which

• The quantity used of at least one factor of production is fixed.

• The quantities used of all factors of production are fixed.

• Output prices are fixed.

• Factor of production prices are fixed.

After constructing a new factory, the cost of building the factory is a

• Past cost.

• Sunk cost.

• Variable cost.

• None of the above answers are correct.

In the long run, a firm has

• No factors of production that are fixed.

• No factors of production that are variable.

• No factors of production that are either fixed or variable.

• Fixed factors of production but no variable resources.

A firm's total product curve shows

• That inefficiency is not possible.

• How the cost of the fixed resources change when output changes.

• How the amount of output changes when the quantity of labor changes.

• That in the long run the firm must adjust the quantity of all the resources it employs.

The marginal product of labor is the change in total product from a one-unit increase in

• The quantity of labor employed, holding the quantity of other inputs constant.

• The quantity of capital employed, holding the quantity of labor constant.

• Both the quantity of labor and the quantity of other inputs employed.

• The wage rate.

A technological change that increases productivity ________ marginal product and ________ marginal cost.

• increases; increases

• increases; decreases

• decreases; increases

• decreases; decreases

The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the total fixed cost of producing 4,500 frijoles?

• $1000

• $8000

• $9000

• More information is needed to determine the answer.

The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. Between what two levels of output does the marginal cost of producing Fiery Frijoles first begin to rise?

• 0 and 1000

• 1000 and 3000

• 3000 and 4000

• 4000 and 4500

9. The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?

• $1

• $2

• $3

• More information is needed to determine the answer.

The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average total cost of producing 4,500 frijoles?

• $2

• $225

• $9000

• More information is needed to determine the answer.