L> revexpenses William Rainey Harper College ECO 211 Review Lessons 7a, 7b and also 7c - Costs of Production INSTRUCTIONS: Select the BEST answer for each question by markingthe circle alongside your selection 1. Common profit is: A. figured out by subtracting implicit expenses from full revenue. B. established by subtracting explicit costs from total revenue. C. the return to the entrepreneur when economic profits are zero. D. the average profitcapacity of an market over the preceding 10 years. 2. Suppose that a service incurred implicit prices of $200,000 and also explicit expenses of $1 million in a certain year. If the firm marketed 4,000 devices of its output at $300 per unit, its accountancy revenues were: A. $100,000 and its economic profits were zero. B. $200,000 and its economic profits were zero. C. $100,000 and its economic earnings were $100,000. D. zero and also its economic loss was $200,000. 3. The standard characteristic of the brief run is that: A. barriers to enattempt prevent brand-new firms from entering the industry. B. the firm does not have actually sufficient time to change the dimension of its plant. C. the firm does not have actually adequate time to reduced its price of output to zero. D. a firm does not have sufficient time to adjust the quantities of any kind of of the sources it employs. 4. Marginal product is: A. the boost in total output attributable to the employment of an additional worker. B. the rise in full revenue attributable to the employment of an additional worker. C. the boost in total cost attributable to the employment of an additional worker. D. full product divided by the number of employees employed. 5. The first, second, and 3rd workers employed by a firm add 24, 18, and 9 systems to full product respectively. We have the right to conclude that: A. the marginal product of the third worker is 9. B. the full product of the 3 workers is 54. C. the average product of the 3 employees is 18. D. the average product of the first 2 employees is 18. 6. R-1 F22039 In the over diagram curves 1, 2, and also 3 recurrent the: A. average, marginal, and also complete product curves respectively. B. marginal, average, and total product curves respectively. C. total, average, and also marginal product curves respectively. D. total, marginal, and average product curves respectively. 7. R-1 F22039 The above diagram suggests that: A. when marginal product is zero, complete product is at a maximum. B. as soon as marginal product lies above average product, average product is rising. C. as soon as marginal product lies below average product, average product is falling. D. all of the over host true. 8. If you owned a small farm, which of the following would certainly be a addressed cost? A. harvest labor B. hail insurance C. fertilizer D. seed 9. Marginal price is the: A. rate of change in total addressed cost which results from creating an additional unit of output. B. adjust in full expense which outcomes from developing one more unit of output. C. adjust in average variable cost which results from creating another unit of output. D. adjust in average full cost which outcomes from producing one more unit of output. 10. Assume that in the brief run a firm is developing 100 units of output, has actually average total prices of $200, and also average variable costs of $150. The firm"s complete addressed expenses are: A. $5,000. B. $500. C. $.50. D. $50. 11. If a firm decides to create no output in the short run, its expenses will be: A. its marginal costs. B. its fixed plus its variable prices. C. its resolved expenses. D. zero. 12. Answer the following question(s) on the basis of the complying with price data: Output Total Cost 0 $ 24 1 33 2 41 3 48 4 54 5 61 6 69 R-2 REF22070 Refer to the over data. The complete variable cost of developing 5 units: A. is $61. B. is $48. C. is $37. D. is $24. 13. Answer the following question(s) on the basis of the complying with expense data: Output Total Cost 0 $ 24 1 33 2 41 3 48 4 54 5 61 6 69 R-2 REF22070 Refer to the over data. The average full cost of creating 3 units of output: A. is $14. B. is $12. C. is $13.50. D. is $16. 14. Answer the next question(s) on the basis of the adhering to cost data: Output Total Cost 0 $ 24 1 33 2 41 3 48 4 54 5 61 6 69 R-2 REF22070 Refer to the above information. The average addressed expense of developing 3 devices of output: A. is $8. B. is $7.40. C. is $5.50. D. is $6. 15. Answer the next question(s) on the basis of the complying with cost data: Output Total Cost 0 $ 24 1 33 2 41 3 48 4 54 5 61 6 69 R-2 REF22070 Refer to the above information. The marginal expense of creating the sixth unit of output: A. is $24. B. is $12. C. is $16. D. is $8. 16. In the over figure, curves 1, 2, 3, and also 4 reexisting the: A. ATC, MC, AFC, and AVC curves respectively. B. AFC, MC, AVC, and also ATC curves respectively. C. MC, ATC, AVC, and AFC curves respectively. D. ATC, AVC, AFC, and MC curves respectively. 17. Economies and also diseconomic climates of range explain: A. the profit-maximizing level of production. B. why the firm"s long-run average complete expense curve is U-shaped. C. why the firm"s short-run marginal expense curve cuts the short-run average variable expense curve at its minimum suggest. D. the difference between fixed and variable expenses. 18. R-3 F22144 The above diagram reflects the short-run average full expense curves for 5 various plant sizes of a firm. In the lengthy run the firm should create output 0*B x with a plant of size: A. #4 B. #3. C. #2. D. #1. 19. Use the following data to answer the following question(s). The letters A, B, and also C designate three successively larger plant sizes. Output ATC-A ATC-B ATC-C 10 $6 $13 $44 20 5 9 35 30 4 6 27 40 5 4 20 50 7 3 14 60 10 4 11 70 14 5 8 80 19 7 6 90 25 10 5 100 32 16 7 R-4 REF22147 Refer to the above information. At what level of output is minimum reliable range realized? A. 30 B. 40 C. 50 D. 60 E. 70 20. R-5 F22055 Refer to the above diagram. At output level Q: A. marginal product is falling. B. marginal product is increasing. C. marginal product is negative. D. one cannot identify whether marginal product is falling or rising. 21. R-5 F22055 Refer to the over diagram. At output level Q average resolved cost: A. is equal to EF. B. is equal to QE. C. is measured by both QF and also ED. D. cannot be figured out from the indevelopment provided. 22. R-5 F22055 Refer to the above diagram. At output level Q total cost is: A. 0BEQ. B. BCDE. C. 0BEQ plus BCDE. D. 0AFQ plus BCDE. 23. R-5 F22055 Refer to the over diagram. At output level Q full addressed cost is: A. 0BEQ. B. BCDE. C. 0BEQ-0AFQ. D. 0CDQ. 24. R-5 F22055 Refer to the above diagram. At output level Q full variable cost is: A. 0BEQ. B. BCDE. C. 0CDQ. D. 0AFQ. This is the finish of the test.


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