Question 11

A firm produces 100 units of output at a total cost of $1,000.We also know that its average fixed cost would be $5 if it were to produce 50 units.What is the firm's total variable cost when its output is 100 units?

Group of answer choices

$250.

$500

$750

$1,000.

Question 12

If in the short run a firm's marginal product is positive, then:

Group of answer choices

the firm must be operating either in stage 1 or stage 2 of its production function.

its total product must be increasing.

its total product may be increasing or decreasing.

its average product must be increasing.

Question 13

A firm produces 500 units of output, where the marginal product of labor is 50 units and the marginal rate of technical substitution is 5.It follows that the marginal product of capital is

Group of answer choices

1/5.

5

10

25

Question 14

Suppose that a business incurred implicit costs of $100,000 and explicit costs of $500,000 in a specific year. If the firm sold50,000 units of its output at $20 per unit, its accounting:

Group of answer choices

profits were $500,000 and its economic profits were $400,000.

profits were $500,000 and its economic profits were $500,000.

profits were $900,000 and its economic profits were $500,000.

profits were $500,000 and its economic profits were 900,000.

Question 15

When a firm has economies of scale,

Group of answer choices

it has increasing returns to scale in production.

it has decreasing returns to scale in production.

its long-run average cost curve is increasing.

when it doubles all its inputs, its output will also double.

Question 16

Which of the following is correct?

Group of answer choices

Where marginal product is greater than average product, average product is rising.

When marginal product is rising, average variable cost must also be rising.

Average variable cost intersects marginal cost at the latter's (MC's) minimum.

As long as the slope of total product is positive, marginal product will increase.

Question 17

If marginal cost is:

Group of answer choices

falling, then average total cost must also be rising.

rising, then average total cost must also be rising.

rising, then average total cost could be either falling or rising.

falling, then average total cost could be either falling or rising.

Question 18

Assume that in the short run a firm is producing 40 units of output, has average total costs of $100, and has average variable costs of $80. The firm'stotalfixedcosts are:

Group of answer choices

$320.

$400.

$580.

$800.

Question 19

Suppose K and L are perfect complements in a production function.Then the isoquants will be

Group of answer choices

a straight line

shaped like letter L

convex

a ray passing through the origin

Question 20

A firm which is making an economic loss in the short-run would be indifferent between shutting-down or staying open when its

Group of answer choices

P = MC.

P > AVC.

P = AVC.

P = ATC.