Udayton-MBA-Sample

Udayton-MBA-Sample - Chapter 10 - Output and Costs - Sample...

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Chapter 10 - Output and Costs - Sample Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The short run is a period of time in which A) nothing the firm does can be altered. B) the amount of output is fixed. C) prices and wages are fixed. D) the quantities of some resources the firm uses are fixed. 1) 2) The short run is a period of time in which A) output prices are fixed. B) the quantity used of at least one resource is fixed. C) resource prices are fixed. D) the quantities used of all resource are fixed. 2) 3) The short run is a time frame in which A) the quantities of some resources are fixed and the quantities of other resources can be varied. B) the quantities of all resources are fixed. C) the quantities of all resources can be varied. D) all costs are sunk costs. 3) 4) An example of a variable resource in the short run is A) an employee. B) capital equipment. C) land. D) a building. 4) 5) A cost that has already been made and cannot be recovered is called a A) marginal cost. B) fixed cost. C) variable cost. D) sunk cost. 5) 6) The long run is a time frame in which A) the quantities of all resources are fixed. B) the quantities of all resources can be varied. C) the quantities of some resources are fixed and the quantities of other resources can be varied. D) all costs are sunk costs. 6) 7) In the long run, a firm can vary A) its capital but not its labor. B) its labor but not its capital. C) both its labor and its capital. D) neither its labor nor its capital. 7) 8) The long run is distinguished from the short run in that, in the long run, A) output prices can vary. B) the firm no longer maximizes its profit. C) resource prices can vary. D) the quantities of all resources can be varied. 8) 1

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9) The marginal product of labor is the increase in total product from a A) one dollar increase in the wage rate, while holding the price of capital constant. B) one unit increase in the quantity of labor, while also increasing the quantity of capital by one unit. C) one unit increase in the quantity of labor, while holding the quantity of capital constant. D) one percent increase in the wage rate, while also increasing the price of capital by one percent. 9) 10) The marginal product of labor is the change in total product from a one-unit increase in A) the wage rate. B) both the quantity of labor and the quantity of capital employed. C) the quantity of labor employed, holding the quantity of capital constant. D) the quantity of capital employed, holding the quantity of labor constant. 10) 11) The marginal product of labor is the A) output level above which the slope of the total product curve falls. B) output level above which the rate of total product per unit of labor falls. C) maximum output attainable with fixed factors when labor is the only variable factor.
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This note was uploaded on 12/31/2011 for the course ECON 101 taught by Professor Vanderwaal during the Fall '08 term at Waterloo.

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Udayton-MBA-Sample - Chapter 10 - Output and Costs - Sample...

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