The law of diminishing returns states that as

C) a firm uses more of a variable input, given the quantity of fixed inputs, the marginal product of the variable input eventually diminishes.

A) a firm uses more of a variable input, given the quantity of fixed inputs, the firm's average total cost will decrease eventually.

B) the size of a plant increases, the firm's fixed cost decreases.

D) the size of a plant increases, the firm's fixed cost increases.

If a firm's marginal product of labor is less than its average product of labor, then an increase in the quantity of labor it employs definitely will

B) decrease its average product of labor.

A) not change its average product of labor.

C) increase its marginal product of labor.

"Diminishing marginal returns" refer to a situation in which the

D) marginal product of the last worker hired is less than the marginal product of the previous worker hired.

A) average cost of the last worker hired is less than the average cost of the previous worker hired

B) marginal cost of the last worker hired is less than the marginal cost of the previous worker hired.

C) average product of the last worker hired is less than the average product of the previous worker hired.

In the above figure, the average product of labor at point c is

D) None of the above answers are correct.

D) there are no efficient points.

At point e in the above figure, the marginal product of labor definitely

B) is less than the average product of labor.

C) equals the average product of labor.

D) is greater than the average product of labor.

A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit

D) cannot be calculated with this information.

As output increases, marginal cost will

B) eventually increase because of the law of diminishing returns.

A) eventually decrease because of the law of diminishing returns.

C) eventually decrease because of the law of increasing returns.

D) eventually increase because of the law of increasing returns.

The above table shows a firm's

A) short-run and long-run costs.

D) More information is needed to determine if the costs are long-run costs or short-run costs.

In the above figure, as output increases, the distance between curves B and C decreases because

A) average fixed cost decreases as output increases.

B) total cost decreases as output increases.

C) there are increasing marginal costs as output increases.

D) there are diminishing returns to average total cost.

In the above figure, curve D slopes downward because

B) average fixed costs decrease as output increases.

A) there are diminishing returns.

C) all costs decrease as output increases.

D) there are decreasing marginal costs.

In the above figure, the intersection of curves A and C is the point at which

C) average variable cost is minimized.

B) average fixed cost is minimized.

D) average total cost is minimized.

In the above figure, the intersection of curves A and B is the point at which

A) average total cost is minimized.

C) average variable cost is minimized.

D) average fixed cost is minimized.

Average variable cost is at a minimum at the same amount of output at which

D) average product is at a maximum.

A) average product is at a minimum.

B) marginal product is at a minimum.

C) marginal product is at a maximum.

The long run is distinguished from the short run in that, in the long run,

D) the quantities of all resources can be varied.

B) the firm no longer maximizes its profit.

In the above figure, the long-run average cost curve exhibits economies of scale

A) between 5 and 10 units per hour.

B) between 20 and 25 units per hour.

C) between 10 and 20 units per hour.

In the above figure, between 5 and 10 units per hour, the firm experiences

D) decreasing total fixed costs.

In the above figure, the long-run average cost curve exhibits constant returns to scale

C) between 10 and 20 units per hour.

A) between 5 and 10 units per hour.

B) between 20 and 25 units per hour.

In the above figure, the long-run average cost curve exhibits diseconomies of scale

C) between 20 and 25 units per hour.

A) between 10 and 20 units per hour.

B) between 5 and 10 units per hour.

In the above figure, between 20 and 25 units per hour, the firm experiences

C) increasing total fixed costs.

Firms Production and Costs

Authored by Anton Kacaribu

Social Studies

University

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MULTIPLE CHOICE QUESTION

2 mins • 1 pt

A company could produce 100 units of a good for $320 or produce 101 units of the same good for
$324. The $4 difference in costs is

A) the marginal benefit of producing the 101st unit.

B) the marginal cost of producing the 101st unit.

C) both the marginal benefit and the marginal cost of producing the 101st unit.

D) neither the marginal benefit nor the marginal cost of producing the 101st unit.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the above figure, the total fixed cost curve is curve

A) B.

B) A.

C) C.

D) none of the curves in the figure

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the above figure, the total variable cost curve is curve

A) A.

B) B.

C) C.

D) none of the curves in the figure

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the above figure, the total cost curve is curve

A) A.

B) B.

C) C.

D) none of the curves in the figure

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

In the above table, the total fixed cost is

A) $30.

B) $50.

C) $20.

D) $0.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

In the above table, the total fixed cost at 3 units of output is

A) $30.

B) $60.

C) $90.

D) $0.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4
units is

A) $1.20.

B) $15.00.

C) $5.00.

D) $2.00.

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Firms Production and Costs

A company could produce 100 units of a good for $320 or produce 101 units of the same good for
$324. The $4 difference in costs is

In the above figure, the total fixed cost curve is curve

In the above figure, the total variable cost curve is curve

In the above figure, the total cost curve is curve

In the above table, the total fixed cost is

In the above table, the total fixed cost at 3 units of output is

In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4
units is

In the above table, the average fixed cost of producing 15 units of output is

In the above table, the average variable cost of producing 14 units of output is

In the above table, the average total cost of producing 14 units of output is

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Social Studies

Firms Production and Costs

A company could produce 100 units of a good for $320 or produce 101 units of the same good for$324. The $4 difference in costs is

In the above figure, the total fixed cost curve is curve

In the above figure, the total variable cost curve is curve

In the above figure, the total cost curve is curve

In the above table, the total fixed cost is

In the above table, the total fixed cost at 3 units of output is

In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4units is

In the above table, the average fixed cost of producing 15 units of output is

In the above table, the average variable cost of producing 14 units of output is

In the above table, the average total cost of producing 14 units of output is

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Social Studies

A company could produce 100 units of a good for $320 or produce 101 units of the same good for
$324. The $4 difference in costs is

In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4
units is