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tbch06 - CHAPTER 6 Firms and Production MULTIPLE CHOICE...

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Chapter 6/Firms and Production CHAPTER 6 Firms and Production MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question. 1) Economists typically assume that the owners of firms wish to A) produce efficiently. B) maximize sales revenues. C) maximize profits. D) All of the above. Answer: C Diff: 0 Topic: The Ownership and Management of Firms 2) Which of the following statements best describes a production function? 3) With respect to production, the short run is best defined as a time period 4) Joey cuts grass during the summer. He owns one lawn mower. For him, the short run is equal to 103
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Chapter 6/Firms and Production 5) Joey cuts grass during the summer. He rents a lawn mower from his dad. Which of the following statements best illustrates the difference between the short run and the long run for Joey? A) Joey's friends say they will help him, but when he calls them, they say they have other things to do. B) When Joey acquires more customers, he responds by working more hours. Next year, he will buy a lawn mower and split the work with his brother. C) Some customers pay Joey immediately; others wait till the following week. D) Joey has had to turn away some customers because he is already too busy. Answer: B Diff: 2 Topic: Production Figure 6.1 6) Figure 6.1 shows the short-run production function for Albert's Pretzels. The marginal productivity of labor
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