ECO120 CHAPTER 5

A time period when at least one factor of production is held constant is called

• Market period

• Very short period

• Short run

• Long run

Which of the following is an example of a variable factor?

• Permanent labour which remains employed at all levels of output

• Land on which the factory is located

• Machinery which does not change easily

• None of the above

Long run refers to time period in which________________.

• all inputs cannot be increased.

• all inputs can be increased.

• there is at least one variable input.

• there is at least one fixed input.

Which of the following combinations is TRUE about factors of production?

• Labour - profit

• Land - output

• Capital - interest

• Entrepreneur - dividend

Production function shows the relationship between input and output.

• TRUE

• FALSE

Total Costs / Quantity = _____

• Marginal Cost
• Average Total Cost
• Implicit Cost
• Explicit Cost

Variable Cost/Quantity = _______

• Marginal Variable Cost
• Average Fixed Cost
• Average Variable Cost
• Marginal Total Cost

Change in Total Revenue/Change in Quantity
ΔTR/ΔQ = _____

• Marginal cost
• Marginal Revenue
• Profit
• Marginal Profit

Costs that do not change when the quanity of output produced changes?

• Fixed Costs
• Variable Costs
• Explicit Costs
• Implicit Costs

Time period in which one of the costs is fixed?

• Long Run
• Short Run