Separate answers By

Part 1 questions 1-7

Part 2 Questions 1-8

All multiple choice

PART 1

Question 1(Multiple Choice Worth 4 points) (03.01 MC) A popular bakery is able to produce 288 more muffins when they hire another baker. When they hire another after that, the bakery produces only 144 more. This is an example of O the law of diminishing marginal utility O the principle of scarcity O utility maximization the law of diminishing marginal returns O inefficiencyQuestion 3(Multiple Choice Worth 3 points) (03.03 MC) Long-Run Average Total Cost Costs LRATC Q, Q2 Quantity A company is operating efficiently. Where must it be producing? O Anywhere between the y-axis and Q2 OQ1 O Anywhere between Q3 and Q4 O Q4 O Anywhere between Q2 and Q3Question 4(Multiple Choice Worth 3 points) (03.03 MC) Long-Run Average Total Cost Costs LRATC Q, Q, Quantity A company increases production and recognizes they are within the range of economies of scale. Where must their production be? OQ1 O Q2 O Q3 O Q4 O IndeterminateQuestion 5(Multiple Choice Worth 3 points) (03.03 LC) OUTPUT Cost LRATC Quantity If a company increases production beyond Q1 O it will see an increase in marginal product O there will be decreasing retums to scale the average variable cost will decrease in proportion to the increase in LRATC O the market will become increasingly more concentrated revenue will decreaseQuestion 6(Multiple Choice Worth 3 points) (03.03 MC) The company Chronoball's current production has an average fixed cost of $100 and an average total cost of $240. Which of the following must be true? O The marginal product is increasing. O Chronoball's average variable cost must be $140. O The marginal cost must be less than $240. O if production is increased, the average total cost will increase. O Chronoball's production is being analyzed in the long run.Question 7(Multiple Choice Worth 3 points) (03.03 MC) The market for a product has an extremely low minimum efficient scale. Which of the following is a valid conclusion about this market? O There are unlikely to be many firms within this market. O No firms in this market will operate with decreasing returns to scale. O There is likely a low market concentration for this product. O The efficient range will be relatively small for this product. O In the short term, fixed costs are likely very high.Question 8(Multiple Choice Worth 3 points) (03.03 MC) A company is evaluating all input costs and does not consider any of them fixed. Which of the following statements regarding its analysis must be true? O The company must be earning negative profit. O The company is analyzing its production costs in the long run. O Production must be operating in the range of diminishing marginal returns. O The business is failing to consider its fixed-cost obligations. O The average total cost of production must be constant.Question 2(Multiple Choice Worm 4 points) {03.01 MC) Quantity Produced 9. 9: Quantity of Labor Given the marginal product curve and average product curves shown above, at which of the following points would the total product be highest? 001 002 003 004 O Inuetenninate Question 3(Multiple Choice Worth 4 points) (03.01 LC) If the marginal product decreases, what will happen to the total product and average product? O Decrease; decrease O Decrease; increase O Increase; increase O Indeterminate; decrease O Indeterminate; indeterminateQuestion 4(Multiple Choice Worth 4 points) (03.01 MC) Number of Total Sloths Workers Shaved in an Hour 0 0 3 7 3 12 16 19 Based on the production data above for a sloth-shaving boutique, which of the following statements is true? O The marginal product of the second worker is 5 sloths. O Diminishing marginal returns begin immediately with the first worker. O The average product for the third worker is 11 sloths. O The marginal product of the fourth worker is 4 sloths. OAdding a sixth worker would lower the total number of sloths shaved.Question 5(Multiple Choice Worth 4 points) (03.01 LC) If the marginal product of labor is lower than the average product of labor, which of the following must be true? O The marginal product is increasing. O The firm is operating inefficiently. O The average product of labor will decrease. O The total product will decrease. O The total product will increase.Question 6(Multiple Choice Worth 4 points) (03.01 LC) What can a firm do to increase productivity in the short run once its marginal product is zero? O Increase the quantity of the input. O Decrease the quantity of the input. O Lower the price of its product. O Raise the price of its product. O Nothing, as more workers decreases total product.Question 7(Multiple Choice Worth 4 points) (03.01 LC) Atter a rm hires another worker, its total product increases, but not by as much as with the addition of the previous weaker, At this point, the marginal product is l 0 positive and constant I 0 negative and constant I 0 negative and decreasing l 0 positive and decreasing l 0 positive and increasing Question 1(Multiple Choice Worth 3 points) (03.03 LC) OUTPUT Cost LRATC Q, Quantity Which of the following statements regarding a production increase from Qo to Q, is true? There is no change in the total number of units produced. O Fixed costs are constant. Production is experiencing constant returns to scale. O The quantity of output changed is disproportionately greater than the change in input quantity. The production change is unnecessary and inefficient.Question 2(Multiple Choice Worth 3 points) (03.03 LC) There are very few firms able to compete in a market. Which of the following must be true? O The firms are conspiring to fix prices. The firms are all operating within the range of efficient production. O The firms will soon combine into a single supplier. O The minimum efficient scale for the market must be extremely low. There is very high minimum efficient scale for the market