Please answer these all questions

Question 1

Technical efficiency:

Group of answer choices

Requires getting maximum output from the resources used in production.

Requires covering the opportunity costs of the resources used in production.

Requires production beyond the production function.

All of the above.

Question 2

The period in which at least one input is fixed in quantity is the:

Group of answer choices

Long run.

Production run.

Short run.

Investment decision.

Question 3

Marginal physical product is:

Group of answer choices

Total output divided by the quantity of input.

Input divided by output.

The change in total output divided by the change in input quantity.

The change in productivity associated with an additional unit of input.

Question 4

The law of diminishing returns states that beyond some point, ceteris paribus:

Group of answer choices

The returns on stocks and bonds diminish with higher security prices.

The addition to total utility diminishes as more units of a good are consumed.

The marginal physical product of a factor of production diminishes as more of that factor is used.

The output of any good increases as more of a variable input is used.

Question 5

Profit is:

Group of answer choices

The difference between total cost and variable cost.

The difference between total revenue and total cost.

Earned at all points along the production function.

Only possible with technical efficiency.

Question 6

The most desirable rate of output for a firm is the output that:

Group of answer choices

Minimizes total costs.

Maximizes total profit.

Minimizes marginal costs.

Maximizes total revenue.

Question 7

Marginal cost:

Group of answer choices

Is the change in total output from hiring one more factor of production.

Is the change in total cost from producing one additional unit of output.

Falls when there are diminishing returns.

Is the change in the total cost when hiring one more factor of production.

Question 8

Marginal cost is equal to:

Group of answer choices

Total cost output.

Change in total cost change in total output.

Change in total cost change in input.

Total cost input cost.

Question 9

If an additional unit of labor costs $15 and has a MPP of 50 units of output, the marginal cost is:

Group of answer choices

$0.30.

$0.50.

$7.50.

$750.00.

Question 10

Rising marginal costs result from:

Group of answer choices

Rising prices of fixed inputs.

Rising prices of variable inputs.

Falling marginal physical product.

All of the above.

Question 11

Given a constant price per unit for the variable input, marginal cost will increase with greater output if:

Group of answer choices

Marginal physical product is declining.

Marginal physical product is increasing.

Total variable cost is decreasing.

Total fixed cost is increasing.

Question 12

The sum of fixed cost and variable cost at any rate of output is:

Group of answer choices

Total variable cost.

Total cost.

Average total cost.

Average marginal cost.

Question 13

The market value of all resources used in producing a good or service is expressed by:

Group of answer choices

Total costs.

Implicit costs.

Fixed costs.

Variable costs.

Question 14

In the short run, when a firm produces zero output, total cost equals:

Group of answer choices

Zero.

Variable costs.

Fixed costs.

Marginal costs.

Question 15

Which of the following costs do not change when output changes in the short run?

Group of answer choices

Average variable costs.

Variable costs.

Average fixed costs.

Fixed costs.

Question 16

At any given rate of output, the difference between total cost and fixed cost is:

Group of answer choices

Marginal cost.

Average variable cost.

Zero in the short run.

Variable cost.

Question 17

Costs of production that change with the rate of output are:

Group of answer choices

Sunk costs.

Variable costs.

Opportunity costs.

Fixed costs.

Question 18

In the short run, when a firm produces zero output, variable cost equals:

Group of answer choices

Zero.

Total cost.

Fixed cost.

Marginal cost.

Question 19

Which of the following is true as output increases?

Group of answer choices

Fixed costs decline because the costs are spread over greater production.

Marginal costs remain fixed.

Variable costs rise.

Average total costs decline because of diminishing returns.

Question 20

Which of the following is equivalent to ATC?

Group of answer choices

FC + VC.

AFC + AVC.

Change in output divided by change in total cost.

Total cost times the quantity produced.

Question 21

Which of the following is equivalent to ATC?

Group of answer choices

FC + VC.

FC + MC.

Change in total cost divided by change in output.

(FC + VC) Q.

Question 22

In the short run, average costs may rise as a firm increases the rate of production because:

Group of answer choices

Inflation causes the prices of resources to increase.

The supply curve for the product shifts.

Some inputs, such as plant and equipment, cannot be changed.

All of the above.

Question 23

The marginal cost curve intersects the minimum of the curve representing:

Group of answer choices

TC.

ATC.

AFC.

All of the above.

Question 24

If the marginal cost curve is rising, then which of the following must be true?

Group of answer choices

The average total cost curve must be rising.

The average total cost curve must be below the marginal cost curve.

The average total cost curve must be above the marginal cost curve.

Total costs must be rising.

Question 25

Explicit costs:

Group of answer choices

Include only payments to labor.

Are the sum of actual monetary payments made for resources used to produce a good.

Include the market value of all resources used to produce a good.

Are the total value of resources used to produce a good but for which no monetary payment is actually made.

Question 26

Implicit costs:

Group of answer choices

Include only payments to labor.

Are the sum of actual monetary payments made for resources used to produce a good.

Include the value of all resources used to produce a good.

Are the value of resources used to produce a good but for which no monetary payment is actually made.

Question 27

Economic cost:

Group of answer choices

Includes both implicit and explicit costs.

Is the sum of actual monetary payments made for resources used to produce a good.

Includes only implicit costs.

Decreases as the level of production increases.

Question 28

The situation in which all factors of production as variable are referred to as:

Group of answer choices

The long run.

The short run.

The efficiency decision.

Economies of scale.

Question 29

Economies of scale are reductions in:

Group of answer choices

Average total costs that result from declining average fixed costs.

Fixed costs that result from reducing the firm's scale of operations.

Marginal costs resulting from improved technology and production efficiency.

Minimum average total costs that result from using operations of larger size.

Question 30

"Unit labor cost" is the same thing as:

Group of answer choices

The wage rate.

The wage rate MPP.

The change in labor cost divided by the change in output.

MC.

Question 31

When the wage rate is $7 per hour and the MPP of a worker is 35 units per hour, the unit labor cost is:

Group of answer choices

$0.20 per unit.

$7.00 per hour.

$245 per unit.

$245 per hour.