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Pre-Test Chap 08 e18

Pre-Test Chap 08 e18 - Pre-Test Chap 08 e18 Student The...

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Pre-Test Chap 08 e18 Student: ___________________________________________________________________________ The next question(s) are based on the following table that provides information on the production of a product that requires one variable input. 1. Refer to the above table. With the addition of the first unit of input, the marginal product is: A. 5 and the average product is 8.4 B. 5 and the average product is 5.0 C. 8 and the average product is 8.4 D. 8 and the average product is 10.0 2. A firm encountering economies of scale over some range of output will have a: A. Rising long-run average cost curve B. Falling long-run average cost curve C. Constant long-run average cost curve D. Rising, then falling, then rising long-run average cost curve 3. A firm is encountering increasing returns to scale when it increases all of its inputs by 20 percent and its output increases by: A. 10 percent B. 15 percent C. 20 percent D. 25 percent 4. Diseconomies of scale occur mainly because: A. Of the law of diminishing returns B. Firms in an industry must be relatively large in order to use the most efficient production techniques C. Of the inherent difficulties involved in managing and coordinating a large business enterprise D. The short-run average total cost curve rises when marginal product is greater than average total cost

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5. The marginal product of a factor of production is measured by: A. Workers employed B. Production cost C. Output produced D. Capital employed 6. If average variable cost is \$74 and total fixed cost is \$100 at 5 units of output, then average total cost at this output level is: A. \$91 B. \$94 C. \$97 D. \$100 7. Variable costs are: A. Sunk costs B. Multiplied by fixed costs C. Costs that change with the level of production D. Defined as the change in total cost resulting from the production of an additional unit of output 8. The marginal product of labor curve shows the change in total product resulting from a: A. One-unit increase in the quantity of a particular resource used, letting other resources vary B. One-unit increase in the quantity of a particular resource used, holding constant other resources C. Change in the cost of a variable resource D. Change in the cost of a fixed resource
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Pre-Test Chap 08 e18 - Pre-Test Chap 08 e18 Student The...

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