Fixed resources will not change when a firm produces a larger or smaller output of products.

Group of answer choices

True

False

In the short-run a firm has both fixed and variable resources.

Group of answer choices

True

False

A firm encounters diminishing returns when marginal output of the variable resource (input) starts to fall.

Group of answer choices

True

False

Marginal Cost will increase after the firm encounters the Law of Diminishing (Marginal) Returns.

Group of answer choices

True

False

If a firm reduces the output of good it produces, the Average Fixed Cost (AFC) will decrease

Group of answer choices

True

False

To economists the main difference between "the short run" and "the long run" are that:

Group of answer choices

in the long run all resources are variable, while in the short run at lease one resource is fixed.

fixed costs are more important to decision making in the long run than they are in the short run.

in the short run all resources are fixed, while in the long run all resources are variable.

the law of diminishing returns applies in the long run, but not in the short run.

When the Total Product (TP) is falling as additional workers are hired, the:

Group of answer choices

.marginal product of labor is zero

the averave product of labor must be negative.

the average product of labor is increasing.

marginal product of labor is negative.

Average product (AP) is the:

Group of answer choices

level of output at which total product decreases.

level of output at which the total product increases

total output divided by the units of a variable resource.

maximun level of ouput with one variable resource and other fixed resources.

If average variable cost (AVC) is $42.00 and total fixed cost (TFC) is $80.00 at 20 units of output, then the average total cost at this output level is:

Group of answer choices

$122.00

$38.00

$46.00

$40.00

If you know that total fixed cost (TFC) is $400.00, total variable cost (TVC) is $700.00 and the quantity produced is 20 units then:

Group of answer choices

average variable cost (AVC) is $35.00

average total cost (ATC) is $300.00.

marginal cost (MC) is $110.00.

average fixed cost (AFC) is $40.00

Quantity (output)Total Cost0$2401034020420305404070050920

Refer to the above table.Is thetable above a short run or long run cost table?The cost information displayedis a:

Group of answer choices

long run table as there are no fixed costs for the firm

long run table as costs increase and decrease with changes in output

display of both short run and long run production costs.

short run able because there are $240 of fixed costs.

Refer to the above table.The total variable cost (TVC) of producing 40 units is:

Group of answer choices

$240

$300

$460

$180

Refer to the table above.The average fixed cost (AFC) of producing 30 of output is:

Group of answer choices

$12.00

$4.00

$6.00

$8.00

Refer to the above table.The average total cost (ATC) of producing 20 units of output is:

Group of answer choices

$21.00

$14.00

$10.50

$12.00

Refer to the table above.The marginal cost of producing in the 40 to 50 unit output range is:

Group of answer choices

$22.00

$220.00

$160.00

$16.00

Which of the following is the best example of a variable cost?

Group of answer choices

monthly wage payments for hired labor

annual insurance payments for a warehouse

annual property tax payments for an office building

monthly rent payments for a warehouse

If a firm produces nothing, which of the following costs will be zero?

Group of answer choices

opportunity cost

variable cost

total cost

fixed cost

The average fixed cost curve

Group of answer choices

always rises with increased levels of output.

declines as long as it is above marginal cost.

declines as long as it is below marginal cost.

always declines with increased levels of output.

Suppose Jan started a small lemonade stand business last month. A fixed cost for Jan's lemonade stand would include the

Group of answer choices

the monthly rent that she must pay for the store.

cost of paper cups.

the wages paid to her hourly workers.

cost of lemons and sugar.