1.
Total revenue equals the quantity of output the firm produces times the price at which it sells its output
2.
Wages and salaries paid to workers are an example of implicit costs of production
3.
If total revenue is $100, explicit costs are $50, and implicit costs are $30, then accounting profit equals $50
4.
If there are implicit costs of production, accounting profits will exceed economic profits
5.
When a production function gets flatter, the marginal product is increasing
6.
If a firm continues to employ more workers within the same size factory, it will eventually experience diminishing marginal product
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
8.
Fixed cost plus variable costs equal total costs
9.
Average total costs are total costs divided by marginal costs
10.
When marginal costs are below average total costs, average total costs must be falling
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
12.
The average-total-cost curve crosses the marginal-cost curve at the minimum of the marginal-cost curve
13.
The average-total-cost curve in the long run is flatter than the average-total-cost curve in the short run
14.
The efficient scale for a firm is the quantity of output the minimizes marginal cost
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
16.
Accounting profit is equal to total revenue minus
A. 
B. 
C. 
The sum of implicit and explicit costs
D. 
E. 
17.
Economic profit is equal to total revenue minus
A. 
B. 
C. 
The sum of the implicit and explicit costs
D. 
E. 
18.
If there are implicit costs of production
A. 
Economic profit will exceed accounting profit
B. 
Accounting profit will exceed economic profit
C. 
Economic profit and accounting profit will be equal
D. 
Economic profit will always be zero
E. 
Accounting profit will always be zero
19.
If a production function exhibits diminishing marginal product, its slope
A. 
Becomes flatter as the quantity of the input increases
B. 
Becomes steeper as the quantity of the input increases
C. 
Is linear (a straight line)
D. 
Could be any of the above
20.
If a production function exhibits diminishing marginal product, the slope of the corresponding total-cost curve
A. 
Becomes flatter as the quantity of output increases
B. 
Become steeper as the quantity of output increases
C. 
Is linear (a straight line)
D. 
Could be any of the above
21.
Which of the following is a variable cost in the short run?
A. 
Wages paid to factory labor
B. 
Payment on the lease for factory equipment
C. 
D. 
Interest payments on borrowed financial capital
E. 
Salaries paid to upper management
22.
When marginal costs are below average total costs
A. 
Average fixed costs are rising
B. 
Average total costs are falling
C. 
Average total costs are are rising
D. 
average total costs are minimized
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. 
Constant returns to scale
C. 
D. 
An increase in average total costs
25.
The efficient scale of production is the quantity of output that minimizes
A. 
B. 
C. 
D.