Question Completion Status: QUESTION 22 To the economist, total cost includes: O explicit, but not implicit, costs. O explicit and implicit costs. O neither implicit nor explicit costs. O implicit, but not explicit, costs. QUESTION 23 When diseconomies of scale occur, O the long-run average total cost curve rises. O average fixed costs will rise. O the long-run average total cost curve falls. O marginal cost intersects average total cost. QUESTION 24 Which of the following is most likely to be a variable cost? O real estate taxes O fuel and power payments O interest on business loans O rental payments on IBM equipment QUESTION 25 Which of the following is most likely to be an implicit cost for Company X? payments for raw materials purchased from Company Y transportation costs paid to a nearby trucking firm O forgone rent from the building owned and used by Company X O rental payments on IBM equipmentAnswer the question on the basis of the following cost data: Average Average Fixed Variable Output Cost Cost $50.00 $100.00 25.00 80.00 16.67 66.67 12.50 65.00 CO NQUI AWN- 10.00 68.00 8.37 73.33 7.14 80.00 6.25 87.50 Refer to the data. The total cost of four units of output is: O $260. O $77.50. O $310. O $215.QUESTION 8 If a firm decides to produce no output in the short run, its costs will be: O zero. its fixed costs. O its variable costs. its marginal costs. QUESTION 9 If you operated a small bakery, which of the following would be a variable cost in the short run? O interest on business loans O baking ovens O annual lease payment for use of the building O baking supplies (flour, salt, etc.) QUESTION 10 OutputQUESTION 17 accounting profits were Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its $100,000 and its economic profits were $100,000. $200,000 and its economic profits were $0. $0 and its economic loss was $200,000. O $100,000 and its economic profits were $0. QUESTION 18 The Sunshine Corporation finds its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question. Output TVC $30 50 65 85 110 Refer to the above information. The average total cost of 3 units of output is: O $65. O $40. O $35. O $21.67. QUESTION 19 The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000QUESTION 4 Answer the question on the basis of the following information: Number of Total Marginal Workers Product Product 8 10 QUI AWN- O 25 30 3 34 Refer to the data. When two workers are employed: average product is 10. O total product is 20. O total product is 18. O total product cannot be determined from the information given. QUESTION 5 Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non labor resources are fixed. Number of Workers Units of Output 0 40 90 3 126 4 150 5 165 6 180 The marginal product of the sixth worker is O 30 units of output. O 15 units of output. O negative.Question Completion QUESTION 12 In the short run: O TVC will increase for a time at an increasing rate, but then beyond some point will increase at a diminishing rate. one cannot generalize concerning the behavior of TVC as output increases O TVC will increase for a time at a diminishing rate, but then beyond some point will increase at an increasing rate. O TVC will increase by the same absolute amount for each additional unit of output produced. QUESTION 13 Marginal cost O equals both average variable cost and average total cost at their respective minimums. O is the difference between total cost and total variable cost. O declines continuously as output increases. O rises for a time but then begins to decline when diminishing returns set in. QUESTION 14 Output Total Cost 0 $24 1 33 2 41 W 48 4 54 61 6 69 Refer to the above data. The total variable cost of producing 5 units is: O $48. O $61. O $37. O $24.Question Completion Status: QUESTION 15 TP b . d 0 Quantity of Labor Refer to the provided graph, which shows the total product (TP) curve. At which point does diminishing marginal returns set in? O point a O point b O point c O point d QUESTION 16 Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were: $100,000 and its economic profits were $100,000. O zero and its economic loss was $200,000. $200,000 and its economic profits were zero. $100,000 and its economic profits were zero.QUESTION 10 2 3 0 Output In the figure, curves 1, 2, 3, and 4 represent the O MC, ATC, AVC, and AFC curves, respectively. O MC, AFC, AVC, and ATC curves, respectively. O ATC, MC, AFC, and AVC curves, respectively. O ATC, AVC, AFC, and MC curves, respectively. QUESTION 11 In the short run, which of the following statements is correct? O The marginal cost curve intersects the average variable and average fixed cost curves at their minimum points. O Average variable cost declines continuously as total output is expanded. If the inputs of all resources are increased by equal amounts, total output will expand by diminishing amounts. Total cost will exceed variable cost.QUESTION 3 4 p Many people will get the previous question wrong at first. Remember that average total cost = average variable cost + averaget fixed cost. Go back and calculate, the average total cost for each level of production using the formula above. Once, we get these numbers: Remember that ATC = TC/Q but this can be rewritten as TC = ATC*Q. Thus, you have to multiply the ATC you just calculated by Q to get the total costs. Write down the TC for each level of production (you will likely have to go back and reanswer the previous question as well). For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans, a... V 10pt E V A TX X2 X2 - + ABC V X EXE i {} O WORDS POWE PQUESTION 5 Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non labor resources are fixed. Number of Workers Units of Output 0 0 40 2 90 126 4 150 5 165 6 180 The marginal product of the sixth worker is O 30 units of output. O 15 units of output. O negative. O 180 units of output. QUESTION 6 Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total fixed costs are: O $500. O $0.50. O $50. $5,000. QUESTION 7 Economies of scale are indicated by: the difference between total revenue and total cost. the declining segment of the long-run average total cost curve. the rising segment of the average variable cost curve. O a rising marginal cost curve.QUESTION 1 List the 4 market models from most to least competitive. Briefly explain each one. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans, a... V 10pt V E V A V 2 V TX X2 X2 SIT The + ABC V X P QUESTION 2 Answer the question on the basis of the following cost data: Average Average Fixed Variable Output Cost Cost $50.00 $100.00 25.00 80.00 16.67 66.67 12.50 65.00 0 - O UT A W N 10.00 68.00 8.37 73.33 7.14 80.00 6.25 87.50Question Completion Status: QUESTION 19 The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Creamy Crisp's economic profit is O $80,000. O $94,000. O $230,000. O $150,000. QUESTION 20 The minimum efficient scale of a firm: O is realized somewhere in the range of diseconomies of scale. O is the smallest level of output at which long-run average total cost is minimized. O occurs where marginal product becomes zero. O is in the middle of the range of constant returns to scale. QUESTION 21 To economists, the main difference between the short run and the long run is that O the law of diminishing returns applies in the long run, but not in the short run. O in the short run all resources are fixed, witile in the long run all resources are variable. O in the long run all resources are variable, while in the short run at least one resource is fixed. O fixed costs are more important to decision making in the long run than they are in the short run. QUESTION 22Question Completion Status: QUESTION 26 Which of the following is correct as it relates to cost curves? O Marginal cost intersects average fixed cost at the latter's minimum point. O Marginal cost intersects average total cost at the latter's minimum point. O Average variable cost intersects marginal cost at the latter's minimum point. Average fixed cost intersects marginal cost at the latter's minimum point. QUESTION 27 MC ATC Dollars AVC D C B D AFC Q Quantity Refer to the diagram. At output level Q total variable cost is: O O AFQ. O O BEQ O O CDQ. O BCDE. Click Save and Submit to save and submit. Click Save All Answers to save all answers