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18 Cards in this Set
- Front
- Back
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suppose that a firm produces 100,000 units a year and sells them all for $5 each. the explicit costs of production are $350,000 and the implicit costs of production are $100,000. The firm has an accounting profit of
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a. $200,000 and an economic profit of $25,000
b. $150,000 and an economic profit of $50,000 c. $125,000 and an economic profit of $75,000 d. $100,000 and an economic profit of $50,000 |
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Economic profit for a firm is defined as the total revenues of the firm minus its
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a. accounting profit
b.explicit costs of production c. implicit costs of production d. opportunity costs of all inputs |
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which would best describe the short run for a firm as defined by economics
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a. the plant capacity for a firm is variable
b. the plant capacity for a firm is fixed c. ther are diseconomies of scale d. ther are eocnomies of scale |
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the marginal product of the fourth unit of labor is
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a. 2 units of output
b. 3 units of output c. 4 units of output d. 15 units of output |
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when the firm hires four units of labor the average product of labor is
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a. 3 units of output
b. 3.75 units of output c. 4.25 units of output d. 15 units of output |
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the average variable cost of the firm when 4 units of output are being produced is
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a. $175
b. $200 c. $300 d. $700 |
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the average total cost of lthe firm when 4 units of output are being produced is
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a. $175
b. $200 c. $300 d. $700 |
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the marginal cost of the sixth unit of output is
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a. $200
b. $300 c. $700 d. $800 |
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in the figure, curves 1,3, and 4, respectively, represent
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a. average variable cost, marginal cost, and average total cost
b. average total cost, average variable cost, and marginal cost c. average fixed cost, average total cost, and marginal cost d. marginal cost, average total cost, and average variable cost |
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at output levelQ, the average fixed cost is measured by the vertical distance represented by
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a. DE
b. DF c. DQ d. EF |
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as output increases beyond the level represented by Q, then the variable cost of production are represented by area
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a. marginal product is rising
b. marginal product is falling c. total fixed costs are rising d. total costs are falling |
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at an output of 10,000 units per year, a frim's total veriable costs are $50,000 and its average fixed costs are $2. the total costs per year for the firm are
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a. $50,000
b. $60,000 c. $70,000 d. $80,000 |
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A firm has total fixed costs of $4,000 a year. the everage variable cost is $3.00 for 2000 units of output. at this level of output, its average total costs are
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a. $2.50
b. $3.00 c. $4.50 d. $5.00 |
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if you know that total fixed cost is $100, total variable cost is $300, and total product is 4 units, then
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a. marginal cost is $50
b. average fixed cost is $45 c. average total cost is $125 d.average variable cost is $75 |
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what is the long-run average cost of producing 40 units of output
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a. $7
b. $8 c. $9 d. $10 |
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at what output is long-run average cost at a minimum
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a. 20
b. 30 c. 40 d. 50 |
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which is most likely to be a long-run adjustment for a firm that manufactures golf carts on an assembly line basis
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a. an increase in the amount of steel the firm buys
b. a reduction in the number of shifts of workers from three to two c. a change in the production managers of the assembly line d. a chang from the production of golf carts to motorcycles. |
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if the firm is priducing at output level Q, then the total variable costs of production are represented by area
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a. 0QFC
b. 0QEB c. 0QDC d. CFEB |
