L> revcosts william Rainey Harper college ECO 211 review Lessons 7a, 7b and 7c - prices of production INSTRUCTIONS: pick the ideal answer for each question by markingthe circle alongside your selection 1. regular profit is: A. identified by individually implicit prices from full revenue. B. established by individually explicit costs from full revenue. C. the return to the entrepreneur when economic profits room zero. D. the typical profitability of an industry over the preceding 10 years. 2. intend that a business incurred implicit expenses of $200,000 and explicit prices of $1 million in a certain year. If the firm offered 4,000 units of its calculation at $300 every unit, its bookkeeping profits were: A. $100,000 and also its financial profits to be zero. B. $200,000 and its financial profits were zero. C. $100,000 and also its financial profits were $100,000. D. zero and also its financial loss was $200,000. 3. The an easy characteristic of the quick run is that: A. barriers to entry prevent brand-new firms native entering the industry. B. the for sure does no have sufficient time to change the dimension of that is plant. C. the firm does not have enough time to cut its price of calculation to zero. D. a certain does not have enough time to adjust the amounts of any type of of the sources it employs. 4. Marginal product is: A. the rise in complete output attributable to the employed staff of one an ext worker. B. the rise in full revenue attributable come the employed staff of one more worker. C. the boost in full cost attributable come the employment of one much more worker. D. total product divided by the variety of workers employed. 5. The first, second, and third workers to work by a firm include 24, 18, and 9 systems to complete product respectively. We have the right to conclude that: A. the marginal product the the third worker is 9. B. the full product that the 3 workers is 54. C. the median product of the three workers is 18. D. the typical product the the first two employees is 18. 6. R-1 F22039 In the over diagram curve 1, 2, and 3 stand for the: A. average, marginal, and also total product curves respectively. B. marginal, average, and also total product curve respectively. C. total, average, and marginal product curve respectively. D. total, marginal, and average product curves respectively. 7. R-1 F22039 The above diagram argues that: A. when marginal product is zero, complete product is in ~ a maximum. B. when marginal product lies above average product, typical product is rising. C. when marginal product lies listed below average product, median product is falling. D. all of the over hold true. 8. If you owned a little farm, i beg your pardon of the complying with would be a fixed cost? A. harvest labor B. hail insurance allowance C. fertilizer D. seeds 9. Marginal price is the: A. price of change in total fixed expense which outcomes from developing one an ext unit of output. B. readjust in complete cost which outcomes from developing one much more unit that output. C. readjust in median variable price which results from developing one more unit of output. D. adjust in average complete cost which outcomes from creating one more unit of output. 10. Assume that in the short run a certain is developing 100 units of output, has actually average full costs the $200, and average variable prices of $150. The firm"s total fixed prices are: A. $5,000. B. $500. C. $.50. D. $50. 11. If a firm decides to develop no calculation in the quick run, its prices will be: A. the marginal costs. B. its solved plus its change costs. C. its solved costs. D. zero. 12. price the next question(s) ~ above the communication of the following cost data: output complete Cost 0 $ 24 1 33 2 41 3 48 4 54 5 61 6 69 R-2 REF22070 describe the over data. The full variable price of creating 5 units: A. is $61. B. is $48. C. is $37. D. is $24. 13. price the next question(s) top top the communication of the following expense data: output total Cost 0 $ 24 1 33 2 41 3 48 4 54 5 61 6 69 R-2 REF22070 describe the over data. The average full cost of creating 3 systems of output: A. is $14. B. is $12. C. is $13.50. D. is $16. 14. prize the following question(s) top top the communication of the following expense data: output total Cost 0 $ 24 1 33 2 41 3 48 4 54 5 61 6 69 R-2 REF22070 describe the above data. The average fixed price of creating 3 units of output: A. is $8. B. is $7.40. C. is $5.50. D. is $6. 15. prize the next question(s) ~ above the basis of the following price data: output full Cost 0 $ 24 1 33 2 41 3 48 4 54 5 61 6 69 R-2 REF22070 refer to the over data. The marginal price of creating the sixth unit that output: A. is $24. B. is $12. C. is $16. D. is $8. 16. In the above figure, curves 1, 2, 3, and also 4 stand for the: A. ATC, MC, AFC, and also AVC curves respectively. B. AFC, MC, AVC, and ATC curve respectively. C. MC, ATC, AVC, and AFC curves respectively. D. ATC, AVC, AFC, and also MC curves respectively. 17. Economies and also diseconomies of range explain: A. the profit-maximizing level that production. B. why the firm"s long-run average complete cost curve is U-shaped. C. why the firm"s short-run marginal price curve cut the short-run median variable price curve at its minimum point. D. the distinction between fixed and also variable costs. 18. R-3 F22144 The above diagram shows the short-run average complete cost curves because that five various plant sizes of a firm. In the lengthy run the firm should produce output 0*B x through a tree of size: A. #4 B. #3. C. #2. D. #1. 19. use the following data to answer the next question(s). The letters A, B, and also C designate 3 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 describe the over data. In ~ what level of output is minimum reliable scale realized? A. 30 B. 40 C. 50 D. 60 E. 70 20. R-5 F22055 describe the over diagram. At output level Q: A. marginal product is falling. B. marginal product is rising. C. marginal product is negative. D. one cannot identify whether marginal product is fall or rising. 21. R-5 F22055 refer to the over diagram. At calculation level Q average fixed cost: A. is same to EF. B. is equal to QE. C. is measure up by both QF and ED. D. can not be established from the info given. 22. R-5 F22055 refer to the over diagram. At output level Q full cost is: A. 0BEQ. B. BCDE. C. 0BEQ plus BCDE. D. 0AFQ to add BCDE. 23. R-5 F22055 refer to the above diagram. At calculation level Q full fixed cost is: A. 0BEQ. B. BCDE. C. 0BEQ-0AFQ. D. 0CDQ. 24. R-5 F22055 describe the over diagram. At output level Q complete variable expense is: A. 0BEQ. B. BCDE. C. 0CDQ. D. 0AFQ. This is the finish of the test.


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