Saint Leo Univ Eco 202 Chapter 22 Test 2015

 

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Which of the following is true about the long-run average cost curve?

 

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At its current short-run level of production, a firm’s average variable costs equal $30.00 per unit and its average fixed costs equal $25.00 per unit. Its total costs at this production level equal $3,500.

 

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The wage rate divided by marginal product equals

 

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The short run is defined as

 

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Total                    Input Total

Product

(Labor)

(Televisions)

1

12

2

25

3

39

4

50

5

60

6

58

7

54

8

48   

 

  In the table above, diminishing returns begins with the addition of worker number.

 

In the table above, the marginal physical product becomes negative when the ___worker is added

 

Question Score:  0 of 1 pt                                                                             Test Score: 57.78% (8.67 of 15 pts)

 

Using the 3-point curved line drawing tool, draw a possible long-run average cost curve for a firm that always experiences diseconomies of scale no matter what plant size it selects.  Label this curve  ‘ATC’.           

 

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The law of diminishing marginal returns shows the relationship between

 

 

 

 

 

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The shape of the short-run cost curves are the result of

 

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If a firm hires an additional worker and discovers that its total physical output has fallen, then it must be true that

 

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In economics, the planning horizon is defined as

 

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  Economies of scale in production

 

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Which of the graphs represents the correct relationship among the cost curves?

 

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In the long run there

 

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Consider the long-run average cost curve to the right.

 

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The firm’s minimum efficient scale occurs