Question 1 of 20 Average variable cost is:
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A. the firm's variable cost per unit multiplied by the quantity.
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B. total variable cost
... [Show More] divided by quantity.
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C. the difference between average total cost and total variable cost.
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D. the difference between total cost and total variable cost.
Question 2 of 20
Which of the following is (are) correct?
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A. Firms are organizations that produce goods and services.
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B. Firms seek to maximize profits.
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C. Firms seek to utilize factors of production in the most efficient way in order to
maximize profits.
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D. All of the above are correct.
Question 3 of 20 For a restaurant:
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A. labor and food would be variable factors of production.
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B. a building would be a fixed factor of production in the short run.
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C. fire insurance on a building would be a fixed factor of production.
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D. A and B are correct.
Question 4 of 20
Diminishing marginal returns means that:
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A. each additional unit of an input used will decrease output.
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B. each additional unit of an input used will increase output, but by smaller and smaller amounts.
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C. each additional unit of an input used will increase output by larger and larger amounts.
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D. the firm is maximizing profit.
Question 5 of 20
When marginal cost is below average variable cost, average variable cost must be:
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A. at its minimum.
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B. at its maximum.
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C. falling.
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D. rising.
Question 6 of 20
If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is:
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A. $30.
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B. $35.
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C. $50.
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D. $300.
Question 7 of 20 In the long run:
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A. all inputs are fixed.
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B. inputs are neither variable nor fixed.
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C. at least one input is variable and one input is fixed.
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D. all inputs are variable.
Question 8 of 20
A factor of production whose quantity can be changed during a particular period is a:
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A. marginal factor of production.
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B. fixed factor of production.
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C. incremental factor of production.
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D. variable factor of production.
Question 9 of 20
Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencing:
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A. constant marginal returns.
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B. increasing marginal returns.
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C. diminishing marginal returns.
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D. negative marginal returns.
Question 10 of 20
The sum of fixed and variable costs is:
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A. total cost.
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B. marginal cost.
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C. variable cost.
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D. average cost.
Part 2 of 3 - Costs of Producing Bagels Question 11 of 20
(Exhibit: Costs of Producing Bagels) The total cost of producing six bagels is:
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A. $0.10.
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B. $0.20.
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C. $0.80.
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D. $0.90.
Question 12 of 20
(Exhibit: Costs of Producing Bagels) The average total cost of producing six bagels is:
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A. $0.10.
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B. $0.15.
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C. $0.20.
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D. $0.80.
Question 13 of 20
(Exhibit: Costs of Producing Bagels) The marginal cost of producing the sixth bagel is:
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A. $0.10.
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B. $0.15.
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C. $0.20.
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D. $0.80.
Question 14 of 20
(Exhibit: Costs of Producing Bagels) The total cost of producing two bagels is:
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A. $0.10.
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B. $0.20.
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C. $0.40.
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D. $0.50.
Part 3 of 3 - Short-Run Costs 70.0/ 70.0 Points
Question 15 of 20
(Exhibit: Short-Run Costs) Curve A is the cost curve.
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A. average total
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B. average variable
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C. marginal
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D. total
Question 16 of 20
(Exhibit: Short-Run Costs) Curve B is the cost curve.
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A. average total
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B. average variable
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C. marginal
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D. total
Question 17 of 20
(Exhibit: Short-Run Costs) Curve A crosses the average variable cost curve at:
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A. approximately 2.8 units of output.
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B. approximately 5.3 units of output.
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C. the minimum value of curve B.
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D. the level of output where diminishing marginal returns begin.
Question 18 of 20
(Exhibit: Short-Run Costs) Curve A crosses the average total cost curve at:
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A. the minimum value of Curve B.
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B. approximately 4.3 units of output.
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C. approximately 2.8 units of output.
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D. none of the above points.
Question 19 of 20
(Exhibit: Short-Run Costs) Curve A declines from a cost of about $50 and a quantity of 1 to a cost of about $40 and a quantity of 2 (point F) at which time it rises again. The declining segment is due to marginal returns, and the rising segment is due to marginal returns.
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A. decreasing; increasing
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B. diminishing; increasing
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C. increasing; diminishing
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D. increasing; constant
Question 20 of 20
15.0/ 15.0 Points
(Exhibit: Short-Run Costs) At 7 units of output, average fixed cost is approximately , and average variable cost is approximately .
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A. $100; $100
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B. $10; $135
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C. $40; $ 100
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D. $140; $140 [Show Less]