27 terms

# Micro ch 20

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In the short run it is impossible for an expansion of output to increase:
B. AFC
Economies of scale are indicated by:
B. The declining segment of the long-run ATC curve
If marginal cost is:
C. rising, then ATC could be either falling or rising
Which of the following is not a source of economies of scale?
D. inelastic resource supply curves
Which of the following holds true?
C. when AP is rising AVC falling, and when AP is falling AVC is rising
-diagram- diseconomies of scale
C. begin at output 3
-diagram- in the long run the firm should prodduce output 0(x) with a plant of size:
C. #2
If a firm doubles its output in the long run and it's unit costs of production decline, we can conclude that:
B. economies of scale are being realized.
An explicit cost is:
B. A money payment made for resources not owned by the firm itself.
data. diminishing marginal returns become evident with the addition of the:
C. third worker
The short-run ATC curve is U-shaped because
B. of increasing and diminishing returns
data. The total cost of four unites of output is:
C. \$310
Total FC is:
D. \$50
The vertical distance between a firm's ATC and AVC curves represent
B. AFC, which decreases as output increases
diagram. where variable inputs of labor are being added to a constant amount of property resources. MC will be at a minimum for this firm when hiring:
C. Q1 workers
diagram. for output level Q, per unit costs of B are:
D. obtainable and imply least-cost production of this output
If an industry's long-run ATC has an extended range of constant returns to scale this implies that:
C. both relatively small and relatively large firms can be viable in the industry.
diagram. minimum efficient scale:
B. is achieved at Q1.
data. the ATC of five units of output is:
B. \$78.
Marginal Costs:
A. equals both AVC and ATC at the respective minimums.
If you operated a small bakery, which of the following would be a VC in the short run?
baking supplies (flour, salt, etc.)
diagram. at output level Q total FC is:
B. BCDF
Which of the following is correct?
D. Marginal product rises faster than average product and also falls faster than average product.
If a firm wanted to know how much it would save by producing one less unit of output it would look to:
A. MC
The 1st, 2nd, and 3rd workers by a firm add 24, 18, and 9 unites to total production respectively. Therefore, the:
A. Marginal product of the 3rd worker is 9
diagram. At output level Q;
B. Marginal product is rising
diagram @ output lvl Q total VC is
A. 0BEQ