1. | Total revenue equals the quantity of output the firm produces times the price at which it sells its output |
A. |
B. |
2. | Wages and salaries paid to workers are an example of implicit costs of production |
A. |
B. |
3. | If total revenue is $100, explicit costs are $50, and implicit costs are $30, then accounting profit equals $50 |
A. |
B. |
4. | If there are implicit costs of production, accounting profits will exceed economic profits |
A. |
B. |
5. | When a production function gets flatter, the marginal product is increasing |
A. |
B. |
6. | If a firm continues to employ more workers within the same size factory, it will eventually experience diminishing marginal product |
A. |
B. |
7. | If the production function for a firm exhibits diminishing marginal product, the corresponding total-cost curve for the firm will become flatter as the quantity of output expands |
A. |
B. |
8. | Fixed cost plus variable costs equal total costs |
A. |
B. |
9. | Average total costs are total costs divided by marginal costs |
A. |
B. |
10. | When marginal costs are below average total costs, average total costs must be falling |
A. |
B. |
11. | If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will be U-shaped |
A. |
B. |
12. | The average-total-cost curve crosses the marginal-cost curve at the minimum of the marginal-cost curve |
A. |
B. |
13. | The average-total-cost curve in the long run is flatter than the average-total-cost curve in the short run |
A. |
B. |
14. | The efficient scale for a firm is the quantity of output the minimizes marginal cost |
A. |
B. |
15. | In the long run, as a firm expands its production facilities, it generally first experiences diseconomies of scale then constant returns to scale, and finally economies of scale |
A. |
B. |
16. | Accounting profit is equal to total revenue minus |
A. |
B. |
C. |
D. |
E. |
17. | Economic profit is equal to total revenue minus |
A. |
B. |
C. |
D. |
E. |
18. | If there are implicit costs of production |
A. |
B. |
C. |
D. |
E. |
19. | If a production function exhibits diminishing marginal product, its slope |
A. |
B. |
C. |
D. |
20. | If a production function exhibits diminishing marginal product, the slope of the corresponding total-cost curve |
A. |
B. |
C. |
D. |
21. | Which of the following is a variable cost in the short run? |
A. |
B. |
C. |
D. |
E. |
22. | When marginal costs are below average total costs |
A. |
B. |
C. |
D. |
23. | If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will |
A. |
B. |
C. |
D. |
24. | In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience |
A. |
B. |
C. |
D. |
25. | The efficient scale of production is the quantity of output that minimizes |
A. |
B. |
C. |
D. |
26. | Which of the following statements is true? |
A. |
B. |
C. |
D. |