ch11 output and costs testbank

# ch11 output and costs testbank - C h a p t e r 10 5) A) B)...

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337 10 OUTPUT AND COSTS ± Decision Time Frames Topic: Short Run Skill: Recognition 1) The short run is a period of time in which A) the quantities of some resources the firm uses are fixed. B) the amount of output is fixed. C) prices and wages are fixed. D) nothing the firm does can be altered. Answer: A Topic: Short Run Skill: Recognition 2) The short run is a period of time in which A) the quantity used of at least one resource is fixed. B) the quantities used of all resource are fixed. C) output prices are fixed. D) resource prices are fixed. Answer: A Topic: Short Run Skill: Recognition 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 can be varied. C) the quantities of all resources are fixed. D) all costs are sunk costs. Answer: A Topic: Short Run Skill: Conceptual 4) An example of a variable resource in the short run is A) a building. B) capital equipment. C) an employee. D) land. Answer: C Topic: Sunk Cost Skill: Recognition 5) A cost that has already been made and cannot be recovered is called a A) variable cost. B) fixed cost. C) sunk cost. D) marginal cost. Answer: C Topic: Long Run Skill: Recognition 6) The long 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 can be varied. C) the quantities of all resources are fixed. D) all costs are sunk costs. Answer: B Topic: Long Run Skill: Conceptual 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. Answer: C Topic: Long Run Skill: Recognition 8) The long run is distinguished from the short run in that, in the long run, A) output prices can vary. B) resource prices can vary. C) the quantities of all resources can be varied. D) the firm no longer maximizes its profit. Answer: C Chapter

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338 CHAPTER 10 ± Short-Run Technology Constraint Topic: Marginal Product of Labor Skill: Analytical 9) The marginal product of labor is the increase in total product from a A) one unit increase in the quantity of labor, while holding the quantity of capital constant. B) one unit increase in the quantity of labor, while also increasing the quantity of capital by one unit. C) one dollar increase in the wage rate, while hold- ing the price of capital constant. D) one percent increase in the wage rate, while also increasing the price of capital by one percent. Answer: A Topic: Marginal Product of Labor Skill: Recognition 10) The marginal product of labor is the change in total product from a one-unit increase in A) the quantity of labor employed, holding the quantity of capital constant.
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## This note was uploaded on 03/11/2012 for the course ECON 104 taught by Professor Ismailov during the Spring '11 term at London College of Accountancy.

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ch11 output and costs testbank - C h a p t e r 10 5) A) B)...

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