The short run is a period that is: a. less than one week. b. long enough in whic
ID: 1189637 • Letter: T
Question
The short run is a period that is: a. less than one week. b. long enough in which to make all economic adjustments. c. long enough in which to vary output but not plant capacity. d. less than one month.
A factor of production whose quantity can be changed during a particular period is a: a. variable factor of production. b. incremental factor of production. c. marginal factor of production. d. fixed factor of production.
At 47 units of labor, a firm finds that average product of labor equals 39.6 and marginal product of labor equals 32.9. We can conclude that the average product curve at 47 units of labor is: a. horizontal. b. downward-sloping. c. vertical. d. upward-sloping.
Question 5 The law of diminishing marginal returns holds that the: a. marginal product of any variable factor of production will at some point decline, because it will eventually become burdened with an excess and overwhelming abundance of other factors in the long run b. total product can only increase so long, because factors of production eventually become tired or wear out. c. total product of any variable factor of production will eventually decline, all other things unchanged. d. marginal product of any variable factor of production will eventually decline, assuming the quantities of other factors of production are given.
Question 6 Costs of Producing Bagels (cents) Quantity of Bagels Total Variable Costs Total Fixed Cost per period 0 0 10 1 20 2 30 3 35 4 45 5 60 6 80 7 105 8 135 the total cost of producing 6 bagels is equal to $________ and the marginal cost of the 6th bagel is $__________. a. 0.20;0.90 b. 0.80,0.20 c. 0.20; 0.20 d. 0.90; 0.20
Point D refers to the _______ and Point E refers to the ________point. costs points.JPG a. shut down; profit maximization b. shut down; break even c. break even; shut down d. profit maximization; break even
Question 11 Bev's Bakery, a donut maker, has discovered that the ratio of the marginal product of labor to the price of labor is 6.5, while the ratio of the marginal product of capital to the price of capital is 6.1. The firm has determined that it does not want to change its total costs. Bev's Bakery should: a. use more capital and less labor. b. do nothing different since there is insufficient information upon which to make a decision. c. use more labor and less capital. d. do nothing; the differences in the ratios of marginal product to input price are too small to matter.
Explanation / Answer
The short run is a period that is:
c. long enough in which to vary output but not plant capacity.
A factor of production whose quantity can be changed during a particular period is a: a. variable factor of production
At 47 units of labor, a firm finds that average product of labor equals 39.6 and marginal product of labor equals 32.9. We can conclude that the average product curve at 47 units of labor is:
b. downward-sloping
Because here the marginal product (the product of the last unit) is less than the average product (the total product over the total number of units), we can conclude that the average product is decreasing at 47 units.
Question 5 the law of diminishing marginal returns holds that the:
D. marginal product of any variable factor of production will eventually decline, assuming the quantities of other factors of production are given.
Question 6 Costs of Producing Bagels (cents) Quantity of Bagels Total Variable Costs Total Fixed Cost per period 0 0 10 1 20 2 30 3 35 4 45 5 60 6 80 7 105 8 135 the total cost of producing 6 bagels is equal to $________ and the marginal cost of the 6th bagel is $__________.
d. 0.90; 0.20
Cost of producing 6 bangles = 90/100 = 0.90
Marginal Cost of 6th bangle = 20/100 =0.20
Quantity of Bagels (cents)
Total Variable Costs
Total Fixed Cost
Total Cost
Marginal Cost
0
1
2
3
4
5
6
7
8
0
20
30
35
45
60
80
105
135
10
10
10
10
10
10
10
10
10
10
30
40
45
55
70
90
115
145
0
20
10
5
10
15
20
15
30
Point D refers to the _______ and Point E refers to the ________point.
d. profit maximization; break even
Question 11 Bev's Bakery, a donut maker, has discovered that the ratio of the marginal product of labor to the price of labor is 6.5, while the ratio of the marginal product of capital to the price of capital is 6.1. The firm has determined that it does not want to change its total costs. Bev's Bakery should:
D. do nothing; the differences in the ratios of marginal product to input price are too small to matter.
Quantity of Bagels (cents)
Total Variable Costs
Total Fixed Cost
Total Cost
Marginal Cost
0
1
2
3
4
5
6
7
8
0
20
30
35
45
60
80
105
135
10
10
10
10
10
10
10
10
10
10
30
40
45
55
70
90
115
145
0
20
10
5
10
15
20
15
30
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