Micro-Economics Ch 12-16 Review

Micro-Economics Ch 12-16 Review - Chapter 12 Review 1. The...

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Chapter 12 Review 1. The short run is defined as a: A) period of time less than 1 year. B) period of time less than 6 months. C) planning period in which some inputs are considered to be fixed in quantity. D) time period in which some inputs are fixed, but it cannot exceed 1 year. 2. The marginal cost curve is the mirror image of the: A) total product curve. B) average product curve. C) marginal product curve. D) total cost curve. Chapter 12 Review Chapter 12 Review 3. A input whose quantity cannot be changed during a particular period is a(n): A) marginal input. B) fixed input. C) incremental input. D) variable input. Chapter 12 Review 4. Average variable cost is the ratio of: A) total cost to the marginal cost. B) total cost to the amount of variable input. C) variable cost to the quantity of output. D) marginal cost to the quantity of output.
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Chapter 12 Review 5. If marginal cost is equal to average total cost, then: A) average total cost is increasing. B) average total cost is at its maximum. C) average total cost is at its minimum. D) marginal cost is increasing. Chapter 12 Review Chapter 12 Review 6. (Figure: Long-Run Average Cost) Output per period in the region from O to A indicates that a firm is experiencing: A) diseconomies of scale. B) constant returns to scale. C) economies of scale. D) negative costs of production. Chapter 12 Review 7. (Figure: Long-Run Average Cost) Output per period in the region B to C indicates that a firm is experiencing: A) constant returns to scale. B) diseconomies of scale. C) economies of scale. D) falling marginal cost.
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Chapter 12 Review 8. The marginal product of labor • a. equals the total product divided by quantity of labor. • b. equals the increase in cost when another worker is hired. • c. always decreases as more workers are hired. • d. equals the change in total product divided by the increase in the quantity of labor. Chapter 12 Review 9. The cost of all the factors of production the firm uses is called the ____ cost. • a. complete •b .f i xed • c. total • d. explicit Chapter 12 Review 10. An increase in the rent for the building an insurance agent leases increases the agent’s total • a. cost and average variable cost. • b. variable cost and average variable cost. • c. fixed cost and total variable cost. • d. fixed cost and average fixed cost. Chapter 12 Review 11. Economies of scale occur when, as output increases, the • a. long-run average cost increases.
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Chapter 13 Review 12. Which of the following is the best example of a perfectly competitive market? • a. farming
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Micro-Economics Ch 12-16 Review - Chapter 12 Review 1. The...

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