a.Average fixed cost25. The marginal cost curve intersects the average total cost curve when average variable costs are:a.Rising26. Refer to the table shown. The marginal cost of producing the fourth unit of output is: (TABLE)
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a.$327. The marginal cost curve is a mirror image of the:a.Marginal product curve28. Which of the following cost curves is most often drawn with a U shape?a.Marginal Cost29. Refer to the table shown. The marginal product of the sixth worker is: (TABLE)a.630. Suppose you operate a factory that produces 500 lawn mowers a week. If your weekly variable cost is $40,000 and your weekly total cost is $50,000, the average:a.Fixed cost of production is $20Chapter 121.If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an economistmost likely would say that:a.during the first year the machine had no cost; it provides an implicit revenue of $10,000 to the firm.2.Economies of scale account for what part of a long-run average total cost curve?a.Downward-sloping3.As you move down an isoquant:a.production remains technically efficient.4.When carmakers began to cut costs of producing cars by designing the chassis, engine, and transmissions so that different models could be produced on the same assembly line, production costs fell $240 per car. This change caused car makers’ short-run average cost curves to:a.Shift Down5.An entrepreneur would be leastlikely to develop a product if expected average total cost is:a.$65 and expected price is $40.6.ABC Co. produces only gadgets, and XYZ Co. produces both gadgets and widgets. If ABC Co. produces gadgets at the same average total cost as XYZ Co., economies of:a.Scope are not present in XYZ7.Refer to the graph shown. The shift from SATC3to SATC4reflects:a.Diseconomies of scale8.Refer to the graph shown. The cost of 5 units of labor and 6 2/3 units of machines is the same as the cost of:a.7.5 units of labor and 5 units of machines9.Refer to the graph shown. A firm that produces 900 units of output using the plant size associated with SATC3minimizes:
a.both long-run and short-run average total cost.10. Refer to the graph shown. The output range in region c is associated with:a.Diseconomies of scale11. Refer to the graph shown. If the firm wishes to double output from 500 to 1,000:a.average total costs will remain the same.12. The upward-sloping part of the long-run average cost curve is explained by:a.Diseconomies of scale13. Refer to the graph shown. The least-cost method of producing 1,000 units of output is shownat point:a.D14. The short-run average total cost curve is generally assumed to be:a.U-shaped
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15. Economies of scale occur when a firm's long-run average total cost curve is:a.Downward-sloping16. A firm can use 5 workers and 10 machines, 7 workers and 9 machines, or 8 workers and 9 machines to produce four cars. If each worker costs $200 and each machine is rented for $50, the economically efficient input combination is:a.5 workers and 10 machines17. The merger between two general merchandise stores, Sears and Kmart, each of which
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