Name: ____________ Course: T F 1 A production fun ' ' _ - Chan 18 a technolo maximii'm rate of output that can be produced with a give 2. _ . If unit labor costs in china are 2 in China 1s more productive on average. $ gical relationship that expresses the n combmation of input services. and are $1.8 in the 0.8., then the worker 1}: 3- When marginal cost is rising, average total cost must be rising. rising 4- Whenever marglnal cost is increasing with output, the MPP must be i F 5. In the short run, zero production results in zero costs. F 6. Economic and accounting costs differ by the amount of explicit costs. T . F . 7- If a factory is owned, and not rented, it counts as an explicit cost but not an lmpllClt cost. T F 8. The downward-sloping portion of the average total cost curve indicates economies of scale. 9. Which of the following curves is constantly downward sloping? (a) Average Fixed Cost (b) Average Variable Cost (0) Average Total Cost (d) Marginal Cost 10. An increase in worker productivity will (a) Shift ATC down, but have no impact on MC. (b) Shift MC down, but have no impact on ATC. (c) Shift both ATC and MC down. (d) Shift ATC down but MC up. 11. The change in total output associated with an additional unit of input is the: (a) Marginal cost of output. (b) Diminishing returns to the input. (c) Marginal product of the input. (d) Rate of technical substitution of inputs. 12. A worker's salary is included in the calculation of (a) ATC but not MC. (b) ATC, AFC, and MC. (0) AVG and MC. (d) MC and AFC, but not ATC. 13. When ATC is at its minimum: (a) Prot is maximized. (b) A rm experiences the least-cost method of production. (c) Average xed costs are also at a minimum. (d) All of the above